A quarter of a million workers in New South Wales will see their paid leave rights expanded from 1 July, under landmark reforms by the Minns Labor Government.
This is a major boost for women who make up three-quarters of the 250,000 strong Community Services sector which includes disability services, domestic violence services and women's support services.
Workers will be able to access 6 weeks of long service leave after 7 years of service to the industry, regardless of who they work for, and how long they work with a particular employer.
For over 185,000 female workers (or 3 in 4 workers), this major entitlement could mean taking care of a loved one, an extended mental health break or extending parental leave.
In addition, workers who are registered by their employers in the first 6 months of the new scheme (commencing 1 July 2025 to 31 December 2025) will be able to access long service leave 1 year earlier - after 6 years of service rather than the current 7 years.
According to the Fair Work Ombudsman, a worker on an average annual income of $65,000 would accrue over $9000 in long service leave.
Often workers are placed on short term contracts due to the nature of work and short-term grants. This scheme seeks to provide certainty of employment and retain expertise in the sector by preventing burnout and supporting long-term workforce sustainability.
A recent survey conducted by the NSW Council of Social Service said the care sector in NSW could lose up to 120,000 workers over the next 5 years due to insecure work. Workers in the sector face the unique challenge of moving between up to 4 or 5 employers during their careers. This results in experienced workers never gaining access to long service leave.
For many of these workers who are often juggling children and family responsibilities, missing out on long service leave in the past despite working in the industry over 10 years with multiple employers has been a reality.
By basing long service leave on time employed in the sector, the new scheme ensures that workers can accrue long service leave regardless of how many times they change employers.
This long service leave will allow eligible workers to claim up to 6 weeks' long service leave with payment based on ordinary wages (not including overtime). It doesn't need to be taken immediately or all at one time.
In some cases, such as a worker permanently leaving the industry, workers may be eligible to apply for a pay-out of their long service leave. Workers can also have a break from the industry for up to 4 years without affecting their entitlements.
The new scheme will be supported via a levy paid quarterly by eligible employers and any self-employed contractors who opt-in to the scheme.
The scheme is mandatory for all eligible employers and workers and includes organisations operating in the commercial and not-for-profit sector.
It covers full-time, part-time and casual workers and is optional for self-employed contractors who can choose to opt-in by registering as an eligible worker.
It does not over-ride the requirements of the Long Service Leave Act 1955, under which employees are entitled to long service leave if they work for one employer for 10 consecutive years.
Eligible employers will be able to register for the scheme online from 1 July 2025 via Service NSW.
For more information, please visit the Long Service Corporation web page.
Minister for Industrial Relations Sophie Cotsis said:
"The NSW Government is expanding portable long service leave to community service workers to ensure those who dedicate their lives to supporting others gain the recognition and stability they deserve.
"The scheme means people working in community services across NSW can take a well-earned break and access financial support when they need it, no matter the number of employers they have worked for in the industry.
"The new scheme is entirely funded by employer contributions through a levy, making it a cost-free and equitable program for people working in community services across the State."
Australian Services Union (ASU) Branch Secretary Angus McFarland said:
"This is a win for workers, a win for the community sector, and a win for the people of NSW who rely on the essential supports the sector provides them.
"By tying long service leave to service in the sector rather than for one employer, we can properly value workers and give them a well-deserved break to help reduce burnout.
"Portable entitlements are particularly important for workers in the NDIS where 1 in 4 disability support workers change jobs each year, and many work for multiple employers.
"This common-sense change will also benefit providers and the wider community by improving the quality and consistency of support services."
Executive Director, NSW Long Service Leave Corporation Lauren Nagel said:
"There are 31 types of community service work covered by the scheme, so make sure you head over to the Long Service Corporation website to check if you are eligible.
"From 1 July, employers are responsible for registering themselves and their eligible workers via the Service NSW Business Bureau.
"Portable long service schemes provide an incentive for workers with skills, knowledge, and experience to stay in their sector and support growth."
Member for Strathfield Jason Yat-sen Li said:
"The new portable long service leave scheme is a big win for fairness. It recognises the reality of community services work, where people dedicate years of their lives to caring for others, often across multiple organisations.
"By making long service leave based on time in the sector, not time with one employer, we're saying clearly: your commitment counts.
"This reform is especially important for the thousands of women who keep our care services going. It's about respect, recognition and making sure no one is penalised for doing essential, often insecure, work."
