Long Service Leave (Commonwealth Employees) Regulations (Amendment)

Administered by Department of Employment and Workplace Relations

Legislation au F1998B00014 Regulations Not in force Legislative Instrument

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Long Service Leave (Commonwealth Employees) Regulations (Amendment) 1998 No. 19

EXPLANATORY STATEMENT

Statutory Rules 1998 No. 19

(Issued by authority of the Minister for Workplace Relations and Small Business)

Long Service Leave (Commonwealth Employees) Act 19 76

Long Service Leave (Commonwealth Employees) Regulations (Amendment)

The Long Service Leave (Commonwealth Employees) Act 1976 (the Act) makes provision for long service leave in respect of Commonwealth employees and certain other persons. The Act provides for persons employed 'in Government Service' to be granted long service leave or a payment in lieu where the period of service of the person is at least 10 years.

Section 11 of the Act provides that the period of service of an employee is the period during which he or she has been employed continuously in Government Service. A person is taken to be employed in Government Service if the person is employed by the Commonwealth. In addition, subsection 7(2) of the Act allows the regulations to provide that previous employment of an employee in the service of a body referred to in the regulations shall be taken to be employment in Government Service.

Section 26 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

Regulation 8 of the Long Service Leave (Commonwealth Employees) Regulations is made under subsection 7(2) and provides that the previous employment of an employee in the service of a person, authority, institution or body that is referred to in Schedule 2 shall be taken into account for the purposes of the Act as if it had been employment in Government Service.

The purpose of the regulation was to amend Schedule 2 so as to enable an employee who is transferred to Medibank Limited from the Health Insurance Commission (HIC) under section 21 of the Health Insurance Commission (Reform and Separation of Functions) Act 1997 ('the Transfer Act') to count his or her period of service with Medibank Limited as Government Service for long service leave purposes if they subsequently gain employment with other Commonwealth bodies bound by the Act.

Medibank Private is a health benefits fund operated as a subsidiary arm of the HIC. The Transfer Act provides for the separation of Medibank Private's functions from the HIC and its incorporation under the Corporations Law (known as 'Medibank Limited'). Section 21 of the Transfer Act provides a mechanism for the Minister to transfer certain employees of the HIC to Medibank Limited.

The regulation commenced on the date of gazettal.

Overview

The Long Service Leave (Commonwealth Employees) Regulations (Amendment) 1998 No. 19 was enacted to address the issue of continuity of long service leave entitlements for employees transitioning between Commonwealth entities, particularly in light of structural changes within government-affiliated bodies. This legislative amendment was introduced to ensure that employees who transfer from one Commonwealth entity to another, such as from the Health Insurance Commission (HIC) to Medibank Limited, maintain their long service leave entitlements seamlessly. The objective of this regulation is to ensure that periods of service with entities like Medibank Limited are recognised as Government Service for the purposes of long service leave, thereby providing continuity and fairness in long service leave entitlements for affected employees. The regulation was issued by the Minister for Workplace Relations and Small Business under the authority of the Long Service Leave (Commonwealth Employees) Act 1976. The Act provides for long service leave for Commonwealth employees who have served at least 10 years, and the amendment to the regulations was designed to align with the Health Insurance Commission (Reform and Separation of Functions) Act 1997, facilitating the transition of employees from the HIC to Medibank Limited without disrupting their long service leave accrual. This amendment ensures that the regulatory framework supports the operational changes within government-affiliated entities while protecting the entitlements of employees.

Scope and Application

The Long Service Leave (Commonwealth Employees) Regulations (Amendment) 1998 applies to Commonwealth employees and other specified individuals who have been employed in government service for at least 10 years, thereby qualifying them for long service leave or a payment in lieu. The Act encompasses those who are currently employed by the Commonwealth, as well as those who have previously worked for entities recognised under the regulations as equivalent to government service. This inclusion extends to employees transferred to Medibank Limited from the Health Insurance Commission under the Health Insurance Commission (Reform and Separation of Functions) Act 1997, thereby ensuring continuity of long service leave entitlements. The regulation, which amends Schedule 2 of the Long Service Leave (Commonwealth Employees) Regulations, came into effect on the date of gazettal, providing a clear pathway for employees transitioning from the HIC to Medibank Limited to maintain their eligibility for long service leave benefits.

Key Provisions

The Long Service Leave (Commonwealth Employees) Regulations (Amendment) 1998 No. 19 primarily modifies Schedule 2 of the Long Service Leave (Commonwealth Employees) Regulations to align with changes under the Health Insurance Commission (Reform and Separation of Functions) Act 1997. This amendment was enacted to ensure that employees who are transferred from the Health Insurance Commission (HIC) to Medibank Limited, as outlined in section 21 of the Transfer Act, can count their service with Medibank Limited as Government Service for long service leave purposes, should they later be employed by other Commonwealth bodies governed by the Long Service Leave (Commonwealth Employees) Act 1976. Section 11 of the Act defines the period of service in Government Service as the continuous employment by the Commonwealth, and subsection 7(2) of the Act allows regulations to count previous employment with specific bodies as Government Service. Regulation 8, which was amended by this regulation, now includes Medibank Limited under the bodies whose previous employment will be counted as Government Service. The obligations imposed by this amendment on the parties involved primarily relate to the recognition of service periods for long service leave entitlements. Employees who are transferred from the HIC to Medibank Limited, and subsequently to another Commonwealth body, must ensure that their employment records reflect their service with Medibank Limited to be eligible for long service leave benefits. Commonwealth bodies that employ these employees must verify the service periods as outlined in the amended regulation to process the long service leave entitlements correctly. Medibank Limited, as the entity involved in the transfer, is also required to maintain accurate records of employee service to facilitate the transition and subsequent eligibility claims. Breaches of the requirements set out in these regulations may not explicitly outline specific offences or penalties within the regulation itself. However, failure to comply with the regulations could potentially lead to disputes over long service leave entitlements, which might be subject to resolution through internal Commonwealth dispute resolution mechanisms or external legal proceedings. The potential consequences of non-compliance could include financial liabilities for the Commonwealth if leave entitlements are not correctly calculated or paid, as well as reputational damage if employees feel they have been unfairly treated regarding their service recognition. While the regulation does not specify maximum penalties, the implications of non-compliance can be significant in terms of administrative and legal recourse.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.