Portable Long Service Leave (PLSL) in South Australia

From 1 October 2025, South Australia will introduce the Portable Long Service Leave (PLSL) Scheme for community sector workers. This reform recognises the realities of short-term contracts and project-based roles, aiming to improve equity for workers who move between employers. However, it also introduces new challenges for organisations in areas like compliance, funding, and workforce planning.

How the Scheme Works

Eligible workers will accrue service on a quarterly basis. Completing even one shift in a quarter earns three months of credited service. Paid leave from an eligible role also counts. The maximum credited service per financial year is 12 months.

Once a worker reaches 120 months (10 years) of credited service, they’ll be entitled to 13 weeks of long service leave. Continued service earns an additional 1.3 weeks per year. The minimum leave that can be taken is 7 days.

Who’s Covered

• Social, Community, Home Care and Disability Services Industry (SCHADS) Award
• Aboriginal Legal Rights Movement (ALRM) Award

Similar schemes operate in:

• ACT – ACT Leave
• NSW – Long Service Corporation
• Queensland – QLeave
• Victoria – Portable Long Service Authority

Common Employer Concerns and What to Do

1. Contract Clauses and Award Coverage

Concern: “How do we manage contracts when some roles are covered and others aren’t?”

This is common in organisations running programs under different awards. For example, a youth program (SCHADS) and a childcare centre (Children’s Services Award).

What to do:

• Clearly define award coverage in contracts and position descriptions.
• Specify which long service leave scheme applies, PLSL or the Long Service Leave Act 1987 (SA).
• Separate duties and hours by program.
• Seek advice on dual-role eligibility based on the proportion of covered work.

2. Mixed Eligibility Within One Organisation

Concern: “We have some staff who are eligible and others who aren’t. How do we manage this fairly?”

What to do:

• Map your workforce to identify roles under eligible awards.
• Communicate clearly with staff about who is covered and why.
• Avoid assumptions, eligibility is based on award coverage, not job title or location.
• Ensure contracts specify the applicable long service leave scheme.

3. Funding and Financial Planning

Concern: “We’ve never budgeted for long service leave because staff rarely stay long enough. How do we manage this new cost?”

Traditionally, long service leave was only a liability after 7+ years. Under PLSL, the 2.2% levy applies from day one, regardless of tenure.

What to do:

• Include the levy in funding proposals and project budgets.
• Engage with funding bodies early to seek grant adjustments.
• Review your balance sheet strategy, this is a real-time cost, even without traditional accruals.

Benefits of the PLSL Scheme

For Employees:

• Accrue long service leave across multiple employers.
• Encourages retention by recognising sector-wide service.
• Extends entitlements to casual and part-time workers.

For Employers:

• Improved retention and continuity of service delivery.
• Enhanced appeal to skilled workers.
• A structured approach to managing leave for non-permanent staff.

FAQ

• Will this replace our internal policies?
  No. It complements them. Policies may need updating to reflect the scheme and clarify which LSL scheme applies.
• Are casuals really eligible?
  Yes, if they perform eligible work and meet the criteria.
• What if a worker leaves and returns?
  Their credited service remains, subject to the break rules below.
• Can employers opt out?
  No. If they operate in the sector and meet the criteria, participation is mandatory.
• How is the levy calculated?
  It’s 2.2% of ordinary wages, excluding overtime, bonuses, and reimbursements.
• What happens if I don’t register or report?
  Non-compliance may result in penalties. SAPLSL offers support to help organisations meet obligations.
• Can employees see their accrued leave?
  Yes, once registered, employees can access their service records via the SAPLSL portal.
• Are contractors included?
  Generally no, unless they meet specific criteria under the Act
• Are volunteers included?
  No, only paid employees are eligible.

Breaks in Service

The scheme allows for breaks in service without losing accrued leave:

At Pinnacle HR, we can support you with:

• Registration and compliance setup
• Policy reviews and updates
• Staff training and onboarding materials
• Contractor and director eligibility guidance
• Ongoing compliance and reporting support

What Employers Should Do Now

• Register with SAPLSL between 1–29 October 2025.
• Register all eligible employees by 31 December 2025.
• Pay a 2.2% levy on ordinary wages starting from the first quarter (October–December 2025).
• Submit quarterly returns detailing employee hours and wages.
• Maintain accurate records to support employee entitlements.
• Review contracts to ensure award coverage and LSL entitlements are clearly defined.
• Identify dual-role employees and assess eligibility based on duties and award alignment.
• Communicate with staff about who is covered and what the scheme means.
• Engage with funding bodies to plan for the levy in future grants.