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Portable long service leave provision removed for 10,000 workers

10,000 Territory workers are set to lose an entitlement the sector says they deserve, but the government describes as ‘costly’.

CLP Northern Territory election triumph came from winning the 'North and the outback'

The Country Liberal Party have repealed a bill introduced by Territory Labor which would have given 10,000 workers an “important entitlement”.

Labor introduced the Portable Long Service Leave (Community Services Sector) Act in 2024, allowing workers in the community sector to take their long service leave benefits with them when changing employees within the sector from 2026.

On Tuesday in parliament, the CLP repealed this bill, claiming it was “costly”.

Public Service Minister Jo Hersey said the entitlement would increase community sector costs for consumers.

Public Services Minister Jo Hersey said the program would be “costly”. Picture: Pema Tamang Pakhrin
Public Services Minister Jo Hersey said the program would be “costly”. Picture: Pema Tamang Pakhrin

“Childcare centres told us this would cost them $50,000 extra a year, a cost that would be directly passed onto parents in the form of increased fees,” Mrs Hersey said.

The Minister said Treasury had informed her the scheme would cost the Territory $20m annually.

Opposition leader Selena Uibo, who introduced the bill as the Public Employment Minister in 2024, said similar provisions were already offered to many Territory workers and community sector workers in other jurisdictions.

“The former Labor Government introduced this scheme to give 10,000 community service workers across the Territory an important entitlement already enjoyed by thousands of other Territory workers,” she said.

Ms Uibo defended her government’s legislation. Picture: Pema Tamang Pakhrin
Ms Uibo defended her government’s legislation. Picture: Pema Tamang Pakhrin

“Up to 78 per cent of community service workers are women in low-paid jobs — that’s who misses out as a result of the CLP scrapping their portable long service leave provisions.”

UnionsNT said the loss of portable long service leave would lead to attrition in these “vital” workforces., which includes childhood educators, aged care workers and disability support workers.

“These are all the lowest paid workers in the NT,” UnionsNT secretary Erina Early said.

“Portable long service leave was introduced to support attraction and retention with these vital professions.

“A large number of workers have lost out again under the CLP.”

Ms Early said workers were the real losers. Picture: Pema Tamang Pakhrin
Ms Early said workers were the real losers. Picture: Pema Tamang Pakhrin

The association representing the community sector in the Territory said they still wanted portable long service leave, but not in the form Labor had legislated.

“As legislated, the scheme failed to provide sustainable benefits to workers in the sector,” NT Council of Social Services (NTCOSS) chief executive Sally Sievers said.

“NTCOSS has consistently supported the introduction of a portable long service leave scheme in the NT.

“NTCOSS maintains that a well-designed, sustainable portable long service leave model is necessary to support the sector’s workforce and retain skilled workers in community services.

“The previous government failed to adequately consult the social and community services sector when developing the original scheme, and we urge the current government not to repeat these mistakes.”

Ms Hersey said her government had no plans to bring in an alternative portable long service leave plan.

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Original URL: https://www.ntnews.com.au/news/politics/portable-long-service-leave-provision-removed-for-10000-workers/news-story/d26b42464579dc97733ef7c19e286882