Portable long service leave for the community services sector
UPDATE AS OF 9 September, 2009
Given the lack of progress in negotiating a sustainable portable long service leave model with government, VCOSS is calling on Victorian community sector organisations (CSOs) to actively and publicly voice concerns about the model and the proposed legislative timelines over the next two to three weeks.
We forwarded the Peaks and Statewide Networks portable long service leave (PLSL) position paper (linked below) to the Victorian Government on 12 August and to date have received no formal response to this paper and no official briefing on the status of the PLSL project.
We are aware that the Victorian Government is waiting to clarify whether the PLSL legislation can be deferred until after the implementation of the Federal Government Fair Work Act on 1 January 2010. We understand that the Government will continue with its commitment to introduce legislation in the Spring Session of Parliament if the Federal Government does not provide this assurance shortly.
VCOSS have informed Minister Neville’s Office that the sector will be communicating its concerns more publicly during September given it is still the Government’s intention to introduce legislation in the Spring Session of Parliament.
It is clear that now is the time for a more public approach as there is insufficient time left in 2009 for proper consideration of the proposed legislation, including negotiating changes to the Government’s proposed model to ensure that it is a sustainable model.
WHAT YOU CAN DO
We encourage peaks and sector agencies to write to key Ministers including the Premier, Deputy Premier, Treasurer, Minister Neville and Minister Holding and your local MP over the next two to three weeks to highlight sector concerns about the proposed model, to promote the attributes of a sustainable model, and to call for a delay to the legislation to allow adequate time for consultation.
VCOSS has forwarded a letter to all MPs, a copy of which is linked below. CSOs are welcome to use this letter to assist in writing their communications. This letter is a condensed version of the Peaks and Statewide Networks PLSL position paper, which raises issues of general concern across the sector. It is important to personalise issues from the perspective of your agency, your programs and your workforce. It is important for organisations to explain the specific impact that an unsustainable PLSL model would have on their organisations and their services to disadvantaged Victorians.
Contact details for all MPs can be found on the Victorian Parliament website:
http://www.parliament.vic.gov.au/handbook/menupage.cfm?menuId=1
Click here to read the Letter sent to MPs
For further information, contact:
Paula Grogan, Community Sector Sustainability Policy Coordinator, VCOSS
T: 9654 5050, E: paula.grogan@vcoss.org.au
Cath Smith, CEO, VCOSS
T: 9654 5050, E: cath.smith@vcoss.org.au
The Victorian Government has committed to introducing a legislated long service leave portability scheme which will cover the vast majority of community sector organisations (CSOs) in Victoria. VCOSS broadly supports the principle of portable long service leave (PLSL) in the community sector and seeks the implementation of a scheme that is viable and sustainable for the community sector.
The Department of Human Services (DHS) is leading the government process and has been consulting with the sector about an appropriate PLSL scheme model. The Government has indicated that the Central Fund Model is the preferred model. The key elements of the Central Fund Model are:
- Management of Portable Long Service Leave would be centralised;
- Employers would register their employees and pay a quarterly levy payment to an Authority/Fund Manager that would manage employees’ LSL funds and entitlements;
- Administration fees would be factored into the quarterly levy;
- Monitoring and enforcement would be the responsibility of the Authority; and
- LSL entitlements more generous than the LSL Act 1992 would be managed by employers.
- The model will cover the majority of non-profit, non-government, employees, including those not funded by government.
The Government has also indicated that:
- Legislation for a PLSL scheme is to be introduced in the spring session of parliament; and
- A ‘non-urgent’ timeframe for implementation of the Scheme is preferred, but decisions about commencement of the Scheme are dependent on the outcomes of discussions with the Commonwealth Government in relation to the Fair Work Act 2009.
The following document provides more information about the proposed model.
DHS PLSL Scoping paper, 9 May 2009
Scoping paper
VCOSS hosted a sector forum on 31 July and the Peaks and Statewide Networks Forum met in August and discussed concerns about the proposed model. It is clear that there is significant sector opposition to the proposed Central Fund model and the combined Victorian Peaks and Statewide Networks Forum does not support the model as it is currently proposed.
Key issues of concern are:
- Cost
The overall cost of PLSL will rise as a result of administrative complexity and the transfer of funds from organisations’ balance sheets to the central fund. These costs are compounded by financial pressures as a result of the global economic downturn.
- Administrative complexity
The majority of community sector employees are on awards and workplace agreements where LSL entitlements are superior to the LSL Act 1992. The proposed model deems that entitlements above the Act will be managed by employers. This will mean duplicate record keeping for employers and the fund.
- Timelines
The community sector does not support the legislation timelines proposed by the Victorian Government given that there has been no formal consultation period where the sector has had access to the business impact assessment of various models.
Members of the combined Victorian Peaks and Statewide Networks Forum have expressed in-principle support for a sustainable PLSL scheme to be developed and a desire to continue working with the Victorian Government to do this. The following paper was developed to highlight the attributes of a sustainable portable long service model.
Victorian Peaks and Statewide Networks Forum Position Paper
For further information, contact:
Paula Grogan, Community Sector Sustainability Policy Coordinator, VCOSS
T: 9654 5050 E:paula.grogan@vcoss.org.au
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