LSL - Transfer between states

[Cottoneyes]

Hi,

Has anyone had any experience with any cases or decisions relating to employees with LSL that transfer between states at all.

For example, if an employees was based in Vic for 7.5 years, transferred to NSW for 1 year and was to resign, would they be entitled to the LSL. Under NSW legislation they would not be (in most cases), yet they had an entitlement under Vic law at the time they left.

Another example is an employee commences in Vic, and transfers to SA at a later date. Would their LSL after 10 years be based entirely on the SA accrual, or a combination to reflect the time served in each state?

Most companies I've worked for have taken different tacks on these cases and was wondering if there is any guidance or decision so I know which way is seen as the correct way.

[Tiger]

Hi,
What I do in these situations is
a) whatever amount of LSL has been accrued by the employee in the first state at the time of his transfer, is rolled over to new job in second state. So he begins his new job in new state with a LSL balance based on what he'd accrued at last working day in the first state.

b) Assuming the transferee has a new employment contract which now makes him an employee in the second state (meaning it is a permanent transferr and not just a secondment for a year or whatever), that new state's LSL guidelines are what covers him. That is, he is entitled to take LSL per that state's LSL guidlines.

I also suggest making this clear in the employment contract so there are no issues going forward when people may have left the business and others don't remember!

EG Employee works in Victoria and would not under that legislation, be entitled to pro rata LSL until 7 yrs (for terminations under the special circumstances), but in NSW it is 5 yrs. So if employee transferred from Vic to NSW, he'd be entitled to the pro rata at the 5 yrs under those special circumstances. If he resigns under normal circumstances with service of less then ten years, he'd not be receiving any LSL payments, same as other NSW employees.

Of course, if the employee is only moving interstate on a temporary basis and will return to his home (first) state after the secondment, then the ts and cs of his home state will continue to apply.

Tiger