EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 96
Long Service Leave (Commonwealth Employees)
Regulations (Amendment)
(Issued by the authority of the Minister for Industrial Relations)
Section 26 of the Long Service Leave (Commonwealth Employees) Act 1976 (the Act) provides that the Governor-General may make regulations prescribing all matters which are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
Section 11 of the Act provides, inter alia, that for long service leave purposes, the period of service of an employee is the period during which the employee has been employed continuously in Government Service.
Subsection 7(2) of the Act provides that regulations may be made to enable previous employment of an employee in the service of a person, authority, institution, or body (including a company) whether incorporated or not, that is referred to in the regulations to be taken into account for the purposes of section 11 of the Act as if it had been employment in Government Service.
The Long Service Leave (Commonwealth Employees) Regulations have been amended to authorise the recognition, for long service leave purposes, prior service with Travelstrength Limited, a company incorporated in New South Wales.
Travelstrength Limited is a wholly owned subsidiary of the Commonwealth Banking Corporation of Australia and the Commonwealth Savings Bank of Australia. The Commonwealth Banking Corporation of Australia and the Commonwealth Savings Bank of Australia exist as Commonwealth Authorities under the Commonwealth Banks Act 1959, and prior service for long service leave purposes with these two bodies is covered by paragraph 11(5)(b) of the Long Service Leave (Commonwealth Employees) Act 1976 (the Act). Prior service with Travelstrength Limited has been recognised for long service leave purposes because of the Commonwealth’s direct interest in that company.
Overview
The Long Service Leave (Commonwealth Employees) Regulations (Amendment) 1988, issued under the authority of the Minister for Industrial Relations, amend the Long Service Leave (Commonwealth Employees) Regulations to address a gap in the recognition of prior service for long service leave purposes. Enacted in response to the need to formally acknowledge prior employment with Travelstrength Limited, a wholly owned subsidiary of the Commonwealth Banking Corporation of Australia and the Commonwealth Savings Bank of Australia, these amendments ensure that service with Travelstrength Limited is considered equivalent to service in Government for the calculation of long service leave entitlements. This policy objective aligns with the broader legislative intent to provide consistent and equitable treatment of Commonwealth employees’ long service leave entitlements, reflecting the Commonwealth's direct interest in the subsidiary.
Scope and Application
The Long Service Leave (Commonwealth Employees) Regulations (Amendment) pertain to the eligibility of Commonwealth employees for long service leave, specifically addressing the inclusion of prior service with Travelstrength Limited, a wholly owned subsidiary of the Commonwealth Banking Corporation of Australia and the Commonwealth Savings Bank of Australia. This amendment ensures that service with Travelstrength Limited is recognised for long service leave purposes due to the Commonwealth's direct interest in the company. The Act applies to employees who have been engaged in government service, including previous employment with entities such as Travelstrength Limited, thereby extending the scope of eligibility for long service leave. The amendment has a national jurisdictional reach, impacting Commonwealth employees across Australia, and is consistent with the provisions outlined in the Long Service Leave (Commonwealth Employees) Act 1976. No specific exclusions or thresholds are stated in this amendment; however, the regulations may further define conditions or criteria through subordinate instruments.
Key Provisions
The primary operative sections of the amended regulations involve the recognition of prior service with Travelstrength Limited, a company incorporated in New South Wales, for long service leave purposes under section 11 of the Long Service Leave (Commonwealth Employees) Act 1976 (the Act). Specifically, section 7(2) allows for the inclusion of previous employment with entities referred to in the regulations, enabling these periods to be treated as if they were employment in Government Service. These amendments enable continuity in the calculation of long service leave entitlements for employees who have worked for Travelstrength Limited before joining Commonwealth service.
The obligations and requirements imposed by these regulations necessitate that Travelstrength Limited be recognised as a qualifying employer for the purposes of long service leave. This recognition means that any period of employment with Travelstrength Limited will be aggregated with periods of Government Service to determine an employee's eligibility and quantum of long service leave. Employers and employees must ensure that records accurately reflect these periods of employment to facilitate the correct calculation and payment of long service leave entitlements.
The regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the recognition of prior service for long service leave purposes. However, any failure to correctly account for these periods could lead to disputes or miscalculations in long service leave entitlements. Employers and employees should ensure compliance by maintaining accurate records and following the provisions set out in the Act and these regulations to avoid any potential issues that may arise from non-compliance.