ACT Hospitality Portable Long Service Leave Scheme to Launch in July 2026
The Australian Capital Territory government has announced that its new portable long service leave scheme for hospitality workers will officially begin on July 1, 2026. This initiative, which was passed by the ACT Legislative Assembly in 2023, aims to provide greater job security and flexibility for employees in the hospitality sector.
Key Features of the Scheme
The portable long service leave scheme allows hospitality workers to accrue long service leave entitlements that are transferable between different employers within the industry. This means that employees can change jobs without losing their accumulated leave benefits, promoting mobility and career advancement.
Under the scheme, workers will be eligible for long service leave after seven years of continuous service in the hospitality sector, regardless of whether they have worked for multiple employers during that time. The leave entitlements will be calculated based on a percentage of their ordinary wages, similar to existing long service leave arrangements.
Implementation Timeline and Registration
The scheme will be administered by a newly established authority, which will oversee the registration of employers and employees, as well as the collection and management of contributions. Employers in the hospitality industry will be required to register with the authority and make regular contributions on behalf of their employees.
From July 2026, workers can start accruing entitlements under the scheme, with the first payouts expected to be available from 2033 onwards, once the seven-year service threshold is met. The ACT government has stated that it will work closely with industry stakeholders to ensure a smooth rollout and provide support during the transition period.
Impact on the Hospitality Industry
This scheme is expected to benefit thousands of hospitality workers in the ACT, including those in restaurants, cafes, hotels, and other related businesses. By offering portable long service leave, the government aims to address issues of high turnover and job insecurity in the sector, ultimately improving working conditions and attracting more skilled workers.
Industry groups have welcomed the move, noting that it could help retain experienced staff and enhance the overall quality of service in the hospitality industry. However, some smaller businesses have expressed concerns about the additional administrative burden and costs associated with the scheme.
The ACT government has committed to providing resources and guidance to assist employers in complying with the new requirements, ensuring that the benefits of portable long service leave are realized across the board.
