New Portable Long Service Leave Scheme for Community Services Workers in NSW

New Long Service Leave for Community Service Workers

Recent changes by the NSW Government have meant that workers in the Community Services Industry are entitled to accrue long service leave (LSL) as part of a portable scheme, meaning leave can accumulate between employers. The Community Services Industry portable scheme came into effect on  1 July 2025.  

Community Service Work

Community service work is defined as work to provide a community service or otherwise work under an employer whose predominant purpose is to provide a community service. A list of the 31 types of community service eligible for the CSI Scheme are found in Schedule 1 of the Community Services Sector (Portable Long Service) Act 2024 (NSW).

Some common community services which are covered by the CSI Scheme are:

1. Community mental health support services;
2. Disability supports and services (including NDIS services);
3. In-home respite care services;
4. Social work; and
5. Youth support services.

How it works

Typically, an employee is entitled to long service leave after ten years of continuous service with their employer. However, in the Community Services Industry, employees may change employers prior to reaching this 10 year entitlement. As such, the Community Services Industry scheme makes workers eligible for LSL after seven years of service to the industry with one or more employers.

Eligible workers can claim up to six (6) weeks’ long service leave and does not need to be taken straight away or all at one time.

Workers who are eligible for LSL under both the Community Services Industry scheme and the Long Service Leave Act 1955 (NSW) (LSL Act) cannot be paid under both. In these circumstances, the worker must elect which Act they would like to receive payments under and notify the Long Service Corporation (LSC).

What you need to know as an employer

The Community Servies Sector (Portable Long Service Leave) Act 2024 (the CSS Act) sets out a number of obligations of employers when adhering to the scheme. These include:

1. Employers must register with the Long Service Corporation as an employer within one (1) month of 1 July 2025;
2. Submit quarterly service returns;
3. Pay a quarterly levy;
4. Keep records; and
5. Otherwise comply with the Act.

If you do not comply, there may be penalties.

For employers, this means that if you have one or more workers in the Community Services Industry, you must register with the Long Service Corporation and begin recording service. This is a mandatory scheme and attracts penalties if not complied with.

How we can help

If you are requiring advice as to whether or not these changes affect you and the ways in which they may affect your work or your business, please reach out to the Dispute Resolution team at Marsdens Law Group.

Disclaimer: This post is for general information only and does not constitute legal advice. Please seek tailored legal advice before acting on this information.