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VIC portable LSL will cost jobs and endanger business

"The Victorian Government's announcement that it has accepted the recommendations of a Parliamentary Committee on the Introduction of Portable Long Service Leave in a number of sectors will cost jobs and endanger businesses in the state," according to the Victorian Head of the Australian Industry Group, Tim Piper.

"The announcement goes beyond the recommendations which were made only by Government members on the Committee. The majority of Committee members did not support the relevant recommendations," Mr Piper said.

"The Government members of the Committee recommended only that a feasibility study be carried out on whether portable long service leave should be introduced in the cleaning industry and the security industry. 

"There has been little or no consultation with employers and the broad nature of the sectors suggested for Portable Long Service Leave will create great ambiguity and cost risks for a very large number of businesses.

"The analysis in Ai Group's submission to the inquiry shows that Portable Long Service leave is over four times as costly as regular long service leave. For example, regular long service leave in the Victorian health care and social assistance industry currently costs employers $83 million per year. A portable scheme would cost $358 million per year.

"This is an extremely retrograde step by the Government," Mr Piper said.

Link to Ai Group Submission  

Further Comment: Tim Piper – 0411 430 301