Portable long service leave slated for community service sector

Thousands of workers in the Northern Territory community service sector could soon take their long service leave with them when changing jobs.

Thousands of Territorians working in childcare, aged care and other community services could soon take their long-service leave entitlements with them when changing employers.

About 10,000 Territorians working in the community services sector could soon take their long service leave benefits with them when changing jobs, under proposed legislation introduced to parliament.

The Portable Long Service Leave Bill aims to encourage retention and improve access to leave entitlements for some of the Northern Territory’s lowest paid workers, in a sector where four in five employees are women.

Data suggests half of the NT’s community service workers leave their employer within the first nine years of employment, but only a quarter leave the industry.

The community services sector is defined in the Bill as including a wide range of jobs, including childcare, aged care, social work, youth work, disability services, community legal services, crisis assistance and accommodation support, and health and wellbeing in Aboriginal communities delivered by Aboriginal-controlled health services.

A board will be established with powers to govern and administer the scheme, and employers in the sector will be required to pay a levy to fund it.

Employers will be required to pay a levy to fund the scheme. Photo: Kari Bourne

When introducing the Bill on Thursday, Public Employment Minister Selena Uibo said employers should already be making financial arrangements for the possibility of their employees reaching the point of entitlement for long service leave under recommended accrual accounting practices.

It will be a defined benefit scheme, which means employees will receive a benefit based on the median weekly rate of pay for workers in the community services sector, to be revised annually.

A similar model has already been adopted in other states including Victoria and Queensland, and a construction industry scheme has been run in the Territory by NT Build since 2005.

“For many workers in the community services sector this bill will improve the cost and standard of living and provide a valuable avenue for access to entitlements of long service leave, rewarding effort and improving mental health and wellbeing for those who can access it,” Ms Uibo said.

“I am convinced that this scheme would help our NT community services employers to attract and retain employees in this vital sector.

“Additionally, it will provide a direct benefit to the Territory and its economy.

“Although the community services sector will be the first industry covered by the Act, the Act will be generic in that over time future governments may opt to extend it to other industries.”