FURTHER UPDATE: Proposed Portable Long Service Leave (PLSL) Scheme for Queensland Community Services Sector

Note: After an understandable delay caused by the COVID-19 pandemic, the Community Services Industry (Portable Long Service Leave) Bill 2019 was passed by Queensland Parliament on 17 June 2020 and subsequently signed into law as the Community Services Industry (Portable Long Service Leave) Act 2020. The operative date for the Scheme remains to be determined but 1 January 2021 is likely. ES Clients are directed to the Briefing Paper issued by email on 8 July 2020 for additional background.

Late last year we advised valued clients operating in the community services sector in Queensland that the Palaszczuk Labor government had introduced the Community Services Industry (Portable Long Service Leave) Bill 2019 into Parliament on 27 November 2019.

The Explanatory Notes to the Bill describe the policy objective as establishing a portable long service leave (PLSL) scheme for the community services industry in Queensland.  That includes for-profit and not-for-profit non-government organisations providing services to communities, employing an estimated 44,495 employees. The PLSL scheme will require an employer to pay a levy of 1.35% calculated on an employee’s ordinary wages and report on an employee’s service, quarterly. The PLSL scheme will be administered by the existing PLSL Authority, QLeave, with oversight by a governing board. 

The Bill was referred to Parliament’s Education, Employment and Small Business Committee for detailed consideration. The Committee’s report was released on 14 February 2020. It includes one recommendation: that the Bill be passed.  You can read the report here.

Despite media reports of the past week which could be read to indicate the Bill has been passed into law, that has not yet happened.  The last update for the progress of the Bill is listed on Queensland Parliament website as being the referral to the abovementioned Committee back in November 2019.  However, given the proposed commencement date of the scheme is 1 July 2020, we can expect the Bill to be passed into law very soon.

Subscribers may understandably be concerned about the implementation of the scheme, how it will operate and exactly who it will cover.  According to comments attributed in the report to Mr Tony James, Executive Director of the Office of Industrial Relations, QLeave will “drive and support the implementation of the scheme” and meet closely with industry stakeholders should the Bill be passed.  Direct, targeted communication with community service industry audiences will also be undertaken including face-to-face information sessions and newspaper advertising. Mr James is quoted as saying that, “I cannot stress enough that QLeave and the Office of Industrial Relations will provide detailed supporting materials particularly including examples of scope and coverage as this scheme comes to fruition”. 

We will continue to keep valued clients informed as this matter progresses.