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DanB
04-04-2012, 11:39 AM
Hi All

Can an organisation force someone to take long service leave?

We currently have an employee who has 249 days of LSL (1881 hours or roughly $53,000) which is a hugh liability to the company - if say he was to retire given his 48 years of service. This employee is based in Queensland and is employed under a Workplace Agreement from 2007 which continually roles over.

Whilst understanding that the LSL is dictated by the relevant state legislation, I am unable to find anything which legally states we are not.. Any advice is appreciated.

Thanks

Qld IR Consultant
04-04-2012, 03:29 PM
You would find it difficult to "force" the employee to take LSL. Most employees keep the accrual like that for a nest egg payout at the end of their employment. To be honest if your company is preparing adequate budgets your accountants should be already factoring in his retirement payout in their forecasting. Same as large accruals of Annual Leave.

That aside if you approach the employee and work with them you might find that you could facilitate a transition to retirement arrangement, perhaps along the lines of him working 3 days a week but getting paid 5, the last 2 out of his LSL...You would have to refine the details and consult his Superannuation provider as well especially if he is on a Defined Benefit scheme.

DanB
04-04-2012, 04:36 PM
Thank you for the above...

I do like the suggested idea and will put that forward.

Cottoneyes
05-04-2012, 07:48 AM
Google Qld Long Service Leave Guide and you will find an easy to follow 8 page guide, well worth having a guide for each state for ready reference.

In it the following is shown:
"When can an employee take long
service leave?
The time and manner of taking long service leave
should be agreed between the employer and employee.
Where agreement can't be reached, the employer can -
with at least three months written notice - require an
employee to take at least four weeks long service leave."

Not sure if this is going to be much help in your situation, as you will only reduce the leave entitlement by around 12 - 16 weeks each year.

DanB
05-04-2012, 11:31 AM
Thanks Cottoneyes - I found that document yesterday after positing my question, and it does help to a degree..