The Scam of Long Service Leave

Who else thinks that long service leave has well and truly out served it's purpose (did it ever even have one?)?

Stay at a company for 10 years and you get 2 months of leave.

Sounds good in theory, but if someone has stayed at a company for 10 years, they have very likely had many below inflation raises and low ball job transfer offers. The 2 months "free" leave probably comes nowhere near compensation for that. Not to mention that the employer has been able to retain all the knowledge internally.

I have seen some people that have been at a company for like 9 year and 6 months, and then move to a different role. Wow. What a waste. They would have got 2 months "free pay" if they had just stayed an extra 6 months.

Especially now as people are spending less and less time at each job, and companies continue to prove that loyalty aint worth shit. Maybe you get a piece of paper after 10 years. Maybe a gold watch after 30 years of taking 2% raises.

Comments

  • +70

    If you are not happy with current job, what is stopping you to leave?
    I am about to take my LSL this year - trips to Maldives, Europe… and 3rd not decided yet.
    Oh, and raises are not 2% :)

    • +4

      The federal government is currently exploring portable leave entitlements. Maybe this will make OP happy?

      • +5

        This makes no sense

        • +6

          Just give us an extra week of leave every year. 5 weeks was the standard in the UK when I left and it's higher in much of Europe.

        • Haven't fully thought through but my first impression is that it's not a bad idea. It's like transferring health insurance waiting periods. If you're buying an employee that has lots of sick leave, that just means they didn't take it in their part of their last job. There could be caps to the number that can be transferred but on the whole it seems conceptually solid.

      • +1

        Moving between public services you can carry through your prior service. They have a reciprocal acknowledgement of prior service I.e i went from federal to state. I was then able to access LSL at 7 years :)

      • Long overdue. Absolutely would sdd this kind of reform under a LNP gov

    • +1

      My thoughts as well. As long as the renumeration for work required serves your situation, why not stay long term? I've just finished over 6 years at my current job and overall have quite enjoyed it, but the balance of renumberation for work is shifting so will happily move instead waiting out a whole year for a pro-rata LSL payout.

    • +2

      Wrong, Victorian teachers proudly voted for a 2% pay rise for 4 years. Go us.

  • +136

    This is a ragebait reaction post similar to OP's many others: https://www.ozbargain.com.au/user/209430/nodes

    Don't fall for it. Use your time wiser than this comment.

    • +25

      OP should go back to whinging about poorly-filled KFC chips and fast food apps.

      • +2

        KFC app takes TOOO many clicks to get my PHAT chicken

    • +8

      It seems the only thing OP does is complain..

    • +10

      Jeez what a sad life that guy lives.

      • +3

        And now he'll live an even sadder life, being Penalty Boxed for two weeks

        • +4

          I wish ozb platinum membership let you see the posts people made that put them in time out. Would make for more interesting reading :)

        • That's hilarious - what got him into the penalty box?

    • +2

      Yeah, their QoL grievances aside (waiters in restaurants, KFC chip box filling), one of their bigger early deranged posts was saying something dumb about annual leave and then thoroughly refusing to listen to the dozens of people who chimed in to (politely) set them straight.

      The second I saw the subject line to this post I knew who it was. God knows what tempted them to have a second bite at the cherry.

  • +3

    well at least for me working in the medical field, as long as i stay in public health, i can take the leave with me.

    • +7

      True of many industries, universities do that, so does the construction industry.

      I hope it becomes more of the norm, it's quite the industry perk for some.

      • Plenty of construction workers in Victoria get it too.

      • …whaaat ?!?!

        You can carry LSL between employers,
        as long as the same "industry" ?

        (eg. I read the post above yours and I didn't even know medical fields allowed that )

        • +2

          Not all industries. Construction it's a thing because construction programs don't last that long. Universities it's just an odd thing they do (I got 15% super when I worked at one too). Government/public bodies it's very common.

          In Victoria there's a portable LSL scheme that kicked off a few years ago for specific industries and contract workers, cleaners, security, early childcare and a few other things. But generally you'll know if you're in it already, because you have LSL payments made on your behalf.

          • +1

            @freefall101:

            Universities … (I got 15% super)

            I've known about this Super rate,
            from close family that are in academia.
            After 30 years teaching, they don't even realise,
            how the general population (ie. me)
            don't have as much money in our own super.

          • +1

            @freefall101: Not just LSL, but all leave. Places I've worked at previously the blue-collar workers had their leave entitlements paid to a third-party transferable leave "company"(?). Manufacturing industry, although probably technically construction industry since that's the market that most (all?) our customers are in.

        • +1

          Same for public servants - between federal and even federal <-> state

    • Too bad it doesn't go inter-state. Many in this field move to other states as part of training.

    • I did the same job for 17 years but the business had five different owners.

      I never got LSL

      • You got robbed then.

  • +55

    The Scam

    The only scam is the incorrect and overuse of the term 'scam'.
    Perhaps you could cover that in your next rage post?

    • +1

      Correct thread title should be:

      Long Service Leave: Entitlement or Scam?

    • +9

      Op is hoping to get a job at A Current Affair.

      • Do you actually mean…. Sky News?

  • +12

    NSW not having pro-rata leave after a certain point (in Victoria you get it paid out pro-rata after 7 years and leave, can take it after 10) is definitely balls.

    Other than that, what a weird rant.

    • +4

      NSW doesnt Pro rata? wow i didnt realise that

      in WA its yours from 7 yrs pro rata if you leave

      • -2

        Pro-rata if you are sacked, but not if you leave.

        • +3

          No, you get it however you leave (possibly except death, not checked that option). I handed in my resignation 7 years and 1 day into my last job and got my LSL paid out.

  • +6

    Stay at a company for 10 years and you get 2 months of leave.

    Sounds like a good bonus to me!

    but if someone has stayed at a company for 10 years, they have very likely had many below inflation raises and low ball job transfer offers. The 2 months "free" leave probably comes nowhere near compensation for that. Not to mention that the employer has been able to retain all the knowledge internally.

    Ok, no one is forcing you to stay at one company for 10 years. You're welcome to move companies as you see fit.

    I have seen some people that have been at a company for like 9 year and 6 months, and then move to a different role. Wow. What a waste. They would have got 2 months "free pay" if they had just stayed an extra 6 months.

    LSL is prorated after 7 years in VIC for example, so they would have been paid out the LSL owing to them.

    • +1

      I think it's more interesting thinking about the ratio.

      Work 120 months and get 2 months free. So it's a ratio of 60:1 which is weird, unless you really like Imperial Measurements/Clock. Should the ratio be more, like 100:1 (work 10years get 45 days off) or be less 10:1 (work 10 years, get 1 year free).

      Maybe that should be the discussion?

      • +2

        More like 55:1 if you account for 1 month annual leave a year. Even weirder ratio…

  • +29

    OP's growing list of grievances: long service leave is a scam, Coles Masterchef promotion is a scam, Medicare Levy surcharge is a scam.

    • +63

      OP's posts are a scam.

      • +4

        That makes sense. Cheers.

      • +15

        OP also will send messages accusing you of trolling when they have no evidence (and unlike OP, I have evidence

        ITT: OP still has no idea what a scam is

          • +16

            @random12: Your posts in that case are a scam as they are unjustified (and others agree)

            Oh and just so we’re clear, yes I have been negging your comments here simply ‘cause.

              • +9

                @random12: Well, simply because you deserve the negs. Your posts are a scam.

                Edit: Also not the only one negging your comments, so what does that say about you? That your posts are indeed a scam.

              • +4

                @random12: dont worry u will get plenty of negatives

          • +5

            @random12: Op. Stop scamming people with your ramblings.

          • @random12: "Unfair" and "Unjustified" to who? Green voters will always believe working is "unfair" and "unjustified" until they all got their wish of "universal basic income" (aka $$$ for doing nothing).

            If you don't get my sarcastic point, I'll point out the obvious to you. Unfair / Unjustified are relative to whoever speaks it.

            LSL rules have been around for yonks and if you don't like it, try working in another country.

          • @random12: "Words turnip what I pigeon they turnip!"

          • +1

            @random12: You cant run your own definitions of words you know. English doesnt work like that its a language and there is an agreed on meaning.

  • +2

    oooh ooh, ahh ahh!! 🍌🐒

  • +10

    OPs next post "scams are a scam"

  • Bitter and twisted comes to mind

  • +6

    Post has a number of incorrect details in it. You do not loose long service by "move to a different role" in the same company.

    Only scam is the lack of how long service works.

  • +4

    The true scam is long term casual employment. Lots of these workers look at the pay rate and have no clue what the comparable full time rate actually is. It's not directly comparable.

    You generally don't get any public holidays, sick leave (with exceptions such as food industry), annual leave or long service leave.

    You're less likely to progress within that company and are more likely to be let go of when there is no/less demand.

    • +3

      Long service leave does apply for casuals. I recieved it when i worked in NSW. It was based pro rata on something like the highest of average hours over the last twelve months, five years or entire length of service. Whichever worked out best for the employee. I'm sure other states have similar provisions.

    • +3

      Casuals are entitled to LSL.

  • +3

    It worked out for me. Effectively I moved my way up the chain through several roles and promotions within the same business over a 10 year period. Then, at the 11 year mark I basically got a paid two-month trip overseas, and anything left over was paid out when I departed.

    Alternatively, my partner left a business just after 7 years, the long-service leave gets paid out. No harm done?

  • +1

    Two days early 🤷

  • +1

    Victorian healthcare worker here. Not only do we get 5 weeks annual leave, we get 6 months LSL after 15 years, that we can access after 7 years i.e. 12.1 weeks available to take after 7 years.

  • +1

    @JV is that you?

    • +6

      As if JV could write an entire post without any bold text.

  • +2

    LSL worked out great for me. Had a baby in my 10th year and managed to combine my annual leave + parental leave + LSL.

  • -1

    Can take it at 7 years

    • Not in all states. If I had quit my previous job in Victoria after eight years of service, I'd have gotten LSL. Because I did it in NSW, I got jack

  • +5

    RUOK?

  • +1

    Maybe you get a piece of paper after 10 years.

    I'll have you know I got a glass plaque thankyou very much.

  • +1

    LSL is 3 months after 10 years, not 2.

    • +1

      Might depend on state/territory but NSW the minimum (which is what most employers offer) is 2 months at 10 years.

    • VIC

      "1 week of Long Service Leave for every 60 weeks of continuous employment"

      8 weeks on average

  • +1

    OP needs to use OzBargain to buy some extra tinfoil for their hat, rather than posting this crap - current hat appears to have some large holes in it….

  • ACA running out of ideas and need to know if xxx is a scam will be a good topic to run.

  • +5

    This “scam” of which you speak means I have the chance to retire, then be paid in full, for 5 months whilst idling around doing nothing. Meanwhile I still accumulate annual leave, get covered for sick pay and get my super paid in full.
    What a terrible scam it is

  • +1

    We need a portable leave system that sits beside our super / bank account and gets rid of all types of leave, and instead unifies all leave into a single system.

    eg. Current basic system is the employee accures at least 30 days leave (10 sick and 20 Annual on a full time basis) in a ~ 250 days per year work system, so alongside the super we get 12% added into a leave account and the amount gets deducted from that account and placed into our bank account when used.

    • So you're happy to give up your public holidays?

      • -1

        that was not what I said, the public holidays are still treated the same.

        however as someone who is not Anglo-European Christian yes I would love to select my public holidays

        • a few days during Ramadan
        • my birthday / partners birthdays
        • 2 days for Eid al Fitr and 2 days for Eid al Adha
        • a few other Mondays / Fridays during the year

        those that are Eastern Orthodox should be able to have their easter / christmas, Hindus their Holi / Diwali, Asian Lunar new year and their Buddhist / Shinto days off, Jews Passover etc…

        • that was not what I said, the public holidays are still treated the same

          You said:

          gets rid of all types of leave

          I apologise if I misinterpreted your statement.

          I would love to select my public holidays

          There are a number of Enterprise Agreements that allow you to choose your own public holidays, usually those involving strong unions. You should talk to your union about this.

        • My work we can select them. Almost everyone just has the public holiday on the same day as others/families cant move their days around anyway.

    • Why?

  • I always though it was 3 months after 10 years.

    • I thought so too. I work in the ACT Public Service

  • Depends on the job.

  • +1

    LSL is probably the best latent perk in Aus for the white collar folks. If you work for a state registered company its only 7 years for LSL to kick in and if you ever get to cash it out when you do leave, it is cashed out at your last salary rate. Why would you complain about that? And even though some employers offer better LSL than others, ive never heard one "advertise" it as the headline "benefit", so rather its just there because it is. Take it and go.

    • +2

      so rather its just there because it is

      It's there because unions fought for it, like most/all employee entitlements.

  • +2

    Definitely no scam. I took one month of my LSL when I moved interstate, with the option to extend the time off while I tried for a transfer. Luckily I scored a new role within the organisation in my new state quite quickly so didn't need to extend. That gave me enough banked leave to take an OS holiday a few years later. When I left that bank I was paid out for the remainder, which was a nice little extra.

    With my current employer I recently clocked up 10 years. My salary has increased by 45% over that time (exclusive of bonus). And not just a piece of paper but $1000 worth of gift cards of my choice (on top of the $500 at 5 years). Plus that delicious 13 weeks' leave waiting for me….

    I think OP needs to find a better job.

    • Sames. My salary has gone up by over 3 times since I started, but that said I wasnt on a huge amount when I started so there was a lot of room to move. Yes, you can get more money changing jobs every 2 years, but I hate interviews, never do well in them and think the whole thing is a ballache.

  • +1

    You don't lose LSL if you transfer to another role within your company. What are you on about?

    OP sounds like a business owner, trying to justify the removal of lsl.

  • +2

    I worked for a Nigerian scam company for 11 years and when I left they didn’t pay me my long service leave

    • did they put you in touch with the long lost relative who left you $11 million in a trust account at least?

  • +4

    you must be fun at parties OP

  • +1

    3 months for me and I do not consider it a scam. What a bellend of a post 🤣

  • +1

    old man yells at cloud
    is now
    old man scammed by cloud

  • I have 58 days of LSL. I work shifts of up to (work PT at the moment) 8 days/fortnight. That adds up to about 3 months of effective LSL at full time, and 6 months if 0.5FTE. Not too bad IMO. I also have payroll badgering me every now and then to cash out 100k of "extra" (i.e. over the 4 weeks per annum) leave. This is all after 10 years, give or take in the public health service working mix of PT/FT shift work.

  • Outside of the rage, there are some points to be made. Firstly the last 2 generations don't stay in the same job for more than a year. This is now seen as a good thing. In my day it flagged a problem employee.

    I also agree that in the last few years increases that used to be 5% are under 2%.

    My generation had to work for 20 years to hit director level. Now it's handed out after 3 or 4 years after they start.

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