Portable Long Service Leave is a system designed to provide long service leave benefits to employees in industries or occupations where workers frequently change employers. Traditional long service leave typically accrues with a single employer over a long period, often requiring an employee to stay with the same organization to be eligible for the benefit.

In contrast, portable long service leave systems allow workers to accumulate leave entitlements based on their total period of service across multiple employers within the same industry or sector. This is particularly useful in industries with high employee turnover or where workers move between different companies.

Here’s a brief overview of how it works:

1. Accrual Across Employers: Employees earn long service leave entitlements based on their cumulative service within the industry or sector, rather than with a single employer.

2. Central Administration: A central fund or authority usually manages these entitlements. Workers’ contributions are tracked, and the leave entitlements are stored in a central register.

3. Eligibility and Claims: Workers can claim their long service leave after meeting the minimum service requirements, regardless of the number of employers they’ve had within the industry.

4. Benefits: This system helps ensure that employees who frequently change jobs within a particular sector can still benefit from long service leave, promoting job mobility and career flexibility.

In Australia, for instance, portable long service leave schemes are common in sectors like construction, community services, and security, where workers often move between employers but stay within the same industry. Contact E Tax Australia if you need any help setting up your business properly.