Bills Digest no. 40 2006–07
Long Service Leave (Commonwealth Employees) Amendment
Bill 2006
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This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Long Service Leave (Commonwealth
Employees) Amendment Bill 2006
Date introduced: 11 October 2006
House: House of
Representatives
Portfolio: Employment and Workplace Relations
Commencement: The day after Royal Assent
To extend the operation of the Long Service Leave
(Commonwealth Employees) Act 1976 in respect of Telstra
employees for a period of three years after the day on which the
Commonwealth ceases to have a controlling interest in
Telstra.
The entitlement of employees who are employed in Commonwealth
Government service to long service leave is provided for under the
Long Service Leave (Commonwealth Employees) Act 1976 (Long
Service Leave Act). In general terms, the basic qualification for
long service leave is that the person is, (or was), employed in
Government service and has been continuously employed in one or
more forms of qualifying service (that is, Commonwealth Government
service or recognised prior service) for a period of at least ten
years.
Telstra employees currently accrue long service leave
entitlements under the Long Service Leave Act. The Telstra
(Transition to Full Private Ownership) Act 2005 (Transition
Act) inserts transitional and saving provisions in the Telstra
Corporation Act 1991 (Telstra Act) that protect employee long
service leave entitlements arising from pre-sale service that
otherwise would be foregone due to the sale of Telstra. The
protection applies generally to those Telstra employees with at
least ten years service. However, provisions are also made for
employees with less than ten years service to receive benefits
commensurate with the Long Service Leave Act standard when they
either complete ten years service with Telstra, or cease to be
employees in circumstances under which the Long Service Leave Act
entitlements would have applied, but for the sale.
The saving provisions for long service leave operate in relation
to the designated day , that is, the day which, in the Minister s
opinion, is the first day on which the majority of the voting
shares in Telstra are or were acquired by persons other than the
Commonwealth. The designated day has been chosen as the day on
which various Commonwealth Acts should cease to apply in relation
to Telstra and transitional provisions should operate to preserve
employee entitlements and benefits. Section 3 of the Transition Act
provides a mechanism for public notification of the day on which
the Commonwealth ceases to have a controlling interest in
Telstra.
The amendments proposed by this Bill would defer the operation
of the substantive and saving provisions for a period of three
years after the designated day . This would have the effect of:
- ensuring that Telstra employees will continue to accrue
benefits under the Long Service Leave Act for a period of three
years after the day on which the Commonwealth ceases to have a
controlling interest in Telstra, and
- deferring the operation of the transitional provisions
relating to Telstra employees long service leave entitlements for a
similar period.
Item 2 of the Bill inserts a new
Schedule 1 into the Long Service Leave (Commonwealth
Employees) Act 1976 in order to make a collection of technical
amendments to the provisions of the Telstra (Transition to Full
Private Ownership) Act 2005 (Transition Act) that
deal with the long service leave entitlements of Telstra employees
following the sale of Telstra. The Transition Act is amended to
provide that references to the Long Service Act generally will
affect the operation of that Act for a period of three years from
the date of sale. The
Explanatory Memorandum(1) provides details of the
specific technical amendments and their effects. The extended
operation of the Long Service Leave Act will not affect other
transition arrangements in the Transition Act.
The Minister said in his second reading speech that Telstra
supports this proposal.(2) However, the reaction of the
relevant unions is unknown.
Endnotes
- Explanatory Memorandum, Long
Service Leave (Commonwealth Employees) Amendment Bill 2006, pp. 4
5.
- Hon. K.Andrews, Second reading speech , Long Service Leave
(Commonwealth Employees) Amendment Bill 2006, House of
Representatives, Debates, 11 October 2006, p. 1.
Rosemary Bell
17 October 2006
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ISSN 1328-8091
© Commonwealth of Australia 2006
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