Long Service

[mandy]

I'm seriously thinking about looking for a new job. I've been employed by the same company for just over 12 years. I've had 12 months off for maternity leave in that time.

What I want to know, is how much do they have to pay me out? Is the year off taken into account? I'm sure my company awards long service leave at 15 years, but it will be paid out pro-rata at 10.

Does anyone know if there is a site I can look up to get the Victorian laws regarding this?

 

[Jeff_99]

Not sure about a site, but you should get paid pro-rata for the service you have given. It's usually 2 months AL for 10 yrs service and 3 months for 15yrs. The maternity leave should be taken off your total service period.

 

[mandy]

Originally posted by Jeff_99
The maternity leave should be taken off your total service period.

Even though I was still technically an employee for that time?

 

[Port1978]

Originally posted by mandy5
Even though I was still technically an employee for that time?

Yes, that's what it's like where I work anyway. I think it's because they get somone to replace you when you go off on maternity leave so someone else is actually doing your post for the time that you're away.

 

[Basic]

www.jobsearch.gov.au
No it's not a joke, they'll probably have links to sites with some info on what you'll need. If not you can get in contact with someone like an employment agency and they should be able to tell you. If that doesn't work contact Industrial Relations. When I was a bit younger my boss screwed me out of about $1500 that he hadn't payed me and managed to get away with it. Another story but those are the people I spoke to about it.

 

[Bomber Spirit]

No idea what the law is in Victoria, but in NSW it's 2 months LSL for 10 years continuous service. If an employee leaves after 10 years for any reason, any untaken leave is paid out. If between 5 and 10 years service a pro-rata payment is entitled if the employee is dismissed for reasons other than misconduct (eg redundancy) but not if the worker is dismissed for misconduct or resigns voluntarily.
Normally a break of 2 months employment would cause the count of length of service to be restarted, but maternity leave isn't. The time off during maternity leave doesn't count as continuous service, but any time before taking maternity leave still counts as continuous service.
That's what it is in NSW. Probably something similar in Victoria, but I'm not sure.

 

[mandy]

So, if I've been there 12 years with a year off, I'm looking to be paid out 2 months for the 10 years, plus one week for the 11th year?

Also, can this be paid out in instalments or does it have to be a lump sum?

 

[Jeff_99]

I agree you will probably get about 2 months plus 1 week pay. You could probably check with the finance staff to see if they have made a provision for LSL in the accounts and they can then tell you what you will be entitled to. If you work in a big company then they will prob have a provision for LSL, but a smaller family owned company may not - they are both obliged to pay you out though. The payment will probably be a lump sum, but I think it is concessionally taxed, meaning it is not taxed at your normal tax rate but a lower rate.

 

[mandy]

Originally posted by Jeff_99
I agree you will probably get about 2 months plus 1 week pay. You could probably check with the finance staff to see if they have made a provision for LSL in the accounts and they can then tell you what you will be entitled to. If you work in a big company then they will prob have a provision for LSL, but a smaller family owned company may not - they are both obliged to pay you out though. The payment will probably be a lump sum, but I think it is concessionally taxed, meaning it is not taxed at your normal tax rate but a lower rate.

Thanks Jeff. I checked with payrole today and got a figure. Massive tax though! I've sent an email asking if it's possible to have the pay out staggered over a few months.

I'll have to wait and see.....

 

[Bomber Spirit]

Originally posted by Jeff_99
The payment will probably be a lump sum, but I think it is concessionally taxed, meaning it is not taxed at your normal tax rate but a lower rate.

The pre-16/8/03 component attracts a maximum tax rate of 31.5%, but the post 15/8/93 component is taxed at your normal marginal rates.

 

[mandy]

Originally posted by Bomber Spirit
The pre-16/8/03 component attracts a maximum tax rate of 31.5%, but the post 15/8/93 component is taxed at your normal marginal rates.

Isn't pre 2003 and post 1993 the same time?

 

[Docker_Brat]

Long service is fantastic value, I've given it bit of a hiding with enough left over for a (hopefully soon) redundancy.

It's good value to have some up your sleeve if you're going to quit.

After 12 years even with the maternity leave, I'd have no doubt you've got pro-rata by now. Although I'm lucky we got ours after 7.5 years and leave available after 10.

It'd be cool if you can get half before June 30 and the other half after.

Good luck Mandy, let us know how you go.

 

[Bomber Spirit]

Originally posted by mandy5
Isn't pre 2003 and post 1993 the same time?

Oops! That should have been pre 16/8/93 component. If only I could type.