Premium Capital Finance Pty Ltd has been fined $7,500 in the Melbourne Magistrates’ Court for failing to pay a former employee $15,000 in long service leave entitlement when it was due.
Under the Long Service Leave Act 2018 (the Act) and employer must pay an employee’s long service leave entitlement in full on the day their employment ends.
It was only after Wage Inspectorate Victoria began investigating the matter after receiving a report from the former employee that the company paid the entitlement, 10 months after it was due.
In a victim impact statement read to the court at the plea hearing, the former employee expressed their significant emotional and financial hardship as a result of the company’s actions.
In sentencing, her Honour Magistrate Bolger said that at the very heart of the Act is provisions for employees to have their long service leave entitlement paid when their employment ends, which cannot be negotiated.
Her Honour did not impose a conviction, noting that Premium Capital Finance had no prior record of offending and entered an early guilty plea.
Quotes attributable to Robert Hortle, Commissioner of Wage Inspectorate Victoria
“The business eventually paid the money, but it shouldn’t take a formal investigation for workers to be paid their entitlement.”
“This is a cautionary tale for any business intending to disregard long service leave. It’s a long standing, valued workplace entitlement in Victoria and the Wage Inspectorate is here to ensure it is paid when it is owed.”
“Employers have 7 years to plan for an employee’s long service leave – they should be taking that opportunity so they’re ready to pay employee’s what they’re owed, when it is due.”
“Commencing a prosecution is the last resort for any regulator. When we see flagrant breaches of the Act, we take appropriate action”
Background
The Long Service Leave Act 2018 is a Victorian law that provides long service leave for employees who have worked continuously with one employer for at least 7 years. It applies to work that is:
- full time
- part time
- casual
- seasonal
- fixed term.
After at least 7 years’ continuous employment with one employer, an employee is entitled to take their long service leave and be paid any unused long service leave entitlement on their final day of employment.
Most Victorian employees will be covered by and entitled to long service leave in accordance with the Act, unless they have a long service leave entitlement from another source, such as under other legislation, a registered agreement, award or another law.