Wage Inspectorate Victoria has taken legal action against Premium Capital Finance Pty Ltd, alleging the company breached Victoria’s long-term leave laws by failing to pay a former employee $15,000 on long-term leave of service at the ‘deadline.
In a criminal charge lodged in the Magistrates’ Court of Victoria, it is alleged that the company breached section 9(2) of the Long Service Leave Act 2018 by failing to pay the right to the end of the employee’s employment in September 2021.
It is alleged that the compensation was only paid in July 2022, after the former employee reported the matter to the Pay Inspectorate and an investigation was opened. For a company, the maximum penalty is 60 penalty units for each day during which the alleged offense continued. If found guilty of the violation, the company faces a fine of up to $3.4 million.
The case was listed for mention in Melbourne Magistrates’ Court on November 8, 2022.
Employers and workers who want information on long-term leave should visit the Wage Inspectorate website at Wageinspectorate.vic.gov.au or call 1800 287 287.
The website contains fact sheets, frequently asked questions and a seniority leave calculator. Information on the website has also been translated into 17 languages and interpretation services are available for those who need it. Background to Victoria’s Long Term Leave Act
The Long Service Leave Act 2018 is a Victorian law that provides long-term leave for employees who have worked continuously with an employer for at least 7 years. It applies to work that is:
- full time
- part time
- determined time.
After at least 7 years of continuous employment with an employer, an employee is entitled to take their seniority leave and collect any unused seniority leave on the last day of their employment.
Most Victorian employees will be covered by and will be entitled to long-term leave under the law, unless they have a right to long-term leave from another source, such as under a other legislation, registered agreement, award or other law.
The Victoria Wage Inspectorate enforces state laws covering wage theft, long term furloughs, child employment and owner drivers in Victoria.
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