Are you planning on taking Long Service Leave soon? There are now more options for payment of long service leave

29-Mar-2019

 

 

 

 

Have you previously taken Long Service Leave (LSL) and found the calculations confusing? You’re not alone. ASMOF industrial staff regularly receive calls from members asking about how LSL is calculated on their pay slips. Members often are surprised to read their pay slips and find that they are subjected to an averaging calculation to determine the payment to be used when taking LSL rather than being paid at their actual weekly rate of pay.

This can result in a payment that does not equate to your contracted hours when taking LSL. For example, a Staff Specialist who has worked several years part- time and then becomes full-time will not receive the full-time rate when taking LSL. That is, their varying contracted work hours are subjected to the averaging calculation to determine the LSL payment figure.

In good news, following extensive discussions between the Ministry of Health and public health unions, the Ministry released a new Policy Directive IB2018_059 (PD) at the end of 2018, which sets out some additional options.

What does this mean for you?

Under the new PD, if you want to be paid at your current rate (which is higher than the calculated averaged rate) you can but you will use up more accrued LSL. This is similar to the principle involved in taking LSL at double pay. Equally, if your current rate is lower than the calculated averaged rate, you can remain on your current rate and use up less of your LSL accrual.

It is entirely voluntary and you are free to nominate the option you wish. It may be helpful to have some calculations done prior to making a final decision to determine what suits you best. In addition, if you elect one option this year, you can change the next time you take LSL.