Newsagents need to make sure they are aware of their long service obligations, especially around the time of buying or selling a newsagency. From what I can see there are different rules in different states. In NSW for example, it can kick in at five years whereas in Victoria obligations kick in at seven years.
I was talking with a newsagent yesterday who has discovered an obligation for two recently departed employees. They did not know they had the obligation. Ignorance does not eliminate the responsibility – this is what the authorities will say. Their accountant had not budgeted for the figure – that’s where the problem started in my view. Long service leave is an obligation that ought to be reflected in the financials of the business when you put it up for sale or at least dealt with in the paperwork reflecting obligations of the purchaser – even if there will be none.