Labor cools on proposed portable leave entitlements scheme

Plans to establish a national portable leave entitlements scheme remain stalled, with the Albanese Government recently confirming no action has been taken to progress the concept since the first consultations were paused before they could begin in early-2024.

The proposed scheme was unveiled by the ALP in the lead up to the 2022 Federal election, when it was in Opposition. At the time, Labor indicated it would seek to deliver better pay and conditions for employees in “insecure work” by consulting with State and Territory governments, unions and industry to develop portable schemes for annual leave, personal leave and long service leave.

In February 2024, the Department of Employment and Workplace Relations (DEWR) announced it was preparing for the first round of consultations, but these plans were abandoned less than a month later, when former Workplace Relations Minister, Tony Burke, explained that the Government had listened to the request of business, who lobbied for time to adjust to the various other IR changes Labor had already ushered in during their first term. Twelve months later, Senator, Murray Watt, confirmed to a Senate Education and Employment Legislation Committee Estimates hearing that there had been “no further action” on progressing consultations. In a subsequent Budget Estimates hearing in October 2025, Senator Watt reiterated that there had been no further progress on pursuit of the portable entitlements scheme because the Government’s focus has been on additional reforms more recently committed to “around penalty rates” and “lifting (the) minimum wage”, as examples.

In response, Greens Workplace Relations Spokesperson, Senator, Barbara Pocock, was quoted as saying that the portable entitlements scheme for employees in insecure work was originally flagged as Labor’s “third pillar” of their IR agenda but now the Government, “doesn’t want to touch it”. Senator Pocock went on to label the Government’s inaction a “broken election promise” and advocated for reform of leave entitlements for employees who perform insecure work, particularly as so many young people, women and migrants are heavily impacted.