Long Service Leave Compliance

Automate long service leave compliance checks and calculations for LSL balances and payments. LSL Remediation is available now.

Remediate historical LSL underpayments with our automated solution

With various state-based laws, the intricate interplay between LSL regulations and EAs, and the challenge of payroll systems often not being tailored to Australian legislation, long service leave compliance can be daunting for many businesses.

Our Long Service Leave compliance review tool is the only automated solution on the market that can calculate LSL balances and payments according to state legislation, pre-modern awards and EAs.

Why use our Long Service Leave tool?

Built for Australian legislation

Payroll systems are often internationally owned and not fit for Australian compliance. Our LSL tool is developed in Australia by local payroll experts.

Avoid penalties and reputational damage

LSL underpayments are under media scrutiny. Our technology allows you to review for historical LSL errors, so you can do right by your employees.

Discrepancy visibility

Easily view variances in entitlements, accruals and payments, with the ability to drill down to the individual employee level.

No manual workarounds

Traditional payroll systems require manual adjustments. Our technology automates complex calculations, removing risk of human error.

Unique to state legislation

Our technology is configured to comply with state-based LSL legislation. We continuously update our product to reflect any changes as laws develop.

Comply with pre-modern awards and EAs

The relationship between LSL and different industrial instruments is complex. Our technology navigates how rules apply and interact, removing the stress of manual calculations.

LSL Always On Compliance

Our Always On Compliance tool enables employers to monitor LSL payments and balances on a recurring basis.

Proactive compliance

Identify LSL discrepancies after each pay run, so you can quickly resolve errors and prevent the escalation of long-term and costly issues.

Top up payments and balances

Gain actionable data and insights so you can make top up payments and override balances as necessary.

Speedily solve LSL queries

Save time assessing LSL queries. Gain visibility of your LSL compliance state down to the individual employee – all via a quick search.

Fully automated

Eliminate manual workarounds for LSL payment and balance calculations, reducing error and streamlining efficiencies.

We'll let the numbers do the talking.

90+

Large scale pay reviews completed in 2 years

$70 billion

Of employee payroll data reviewed

145k+

Monthly employee payslip checks

100%

Of pay reviews have found non-compliance

Frequently asked questions

Is wage theft a crime in Australia?

State specific wage theft laws in Queensland and Victoria mean that employers in those states can face criminal charges and convictions as a result of wage theft.

Under the Closing Loopholes Act 2023, intentional wage theft will carry severe penalties of up to 10 years in prison and fines reaching $1,565,000 for individuals and $7,825,000 for corporations, or three times the value of the underpayment – whichever is higher.

The Closing Loopholes No.2 Act 2024 includes civil provisions. Serious contraventions will cover recklessness as well as intentional acts, with the maximum fine increasing to $4,696,000, or three times the underpaid - whichever is higher. These reforms are prompting employers to think ahead about their compliance strategies, to avoid penalties resulting from missteps in wage compliance processes.

Why should my business prioritise compliance?

Australian businesses are under more pressure than ever to maintain and demonstrate workforce compliance. Non-compliance with workplace laws can result in payroll underpayments. This isn’t just bad for business; no matter the intent, underpaying workers can lead to decreased employee morale and lack of trust in the employer. Regular compliance reviews are essential for employers to ensure they’re meeting legal and ethical obligations and that issues do not compound over time.

Why regular, ongoing pay reviews rather than remediation alone?

While remediation seeks to correct past errors and concerns, it does not necessarily address current issues, nor assist with ongoing compliance. Focusing only on the past leaves businesses exposed to the risk of continuing non-compliance. This in turn does not enable businesses to do the right thing by their employees.

Yellow Canary's Always On Compliance empowers businesses to achieve this objective by utilising automation to detect and resolve payment variances on a monthly basis.

We offer remediation as an add-on to our Always On Compliance solution to cover both historical and proactive reviews.

Does Yellow Canary cater to any EA or modern award?

Yes. Yellow Canary’s flexible technology configures to any modern award, enterprise agreement or industrial instrument agreed with your legal counsel or compliance advisor.

What makes Yellow Canary's remediation solution different from accounting or consulting firm services?

Payroll underpayments are a result of antiquated processes and systems. The cause cannot be the cure. Traditionally, pay reviews are carried out using humans, manual calculations and spreadsheets. Yellow Canary automates this process, eliminating any chance of more human error – all at a fraction of the traditional timeline.

Another key differentiator for us is that we recommend reviewing 100% of employee payments; as opposed to sampling data. Previously, there were no tools available to automate the pay review process and employers faced significant costs to perform pay reviews. Instead, many employers choose to only review a sample of the workforce and extrapolate results.  

This approach is problematic because:

  • It assumes all employees work the exact same hours which does not reflect the actual variations in working patterns;  
  • Sample groups of less than 40% are too small to deliver a statistically relevant result; and  
  • In the event that staff are required to be reimbursed for underpayments, individual calculations for each employee would need to be completed separately, resulting in further work and potential inaccuracies.  

Our automation first approach allows 100% of employee payments to be accurately recalculated, eliminating the need for sample-based estimates obtained through manual reviews.

We have gaps in our data. Will you still be able to work with us?

Data gaps have appeared in every engagement we have had. We work with employers and their legal counsel to include data assumptions to ensure a more fulsome review. We can also refer you to one of our partners to help transform your data into the correct format if needed.

How does remediation work?

When our clients choose to carry out remediation, we work in 2 phases.

To empower you to quickly gain insight into your compliance status and address any ongoing issues of non-compliance, we suggest commencing AOC for one cohort as the first step.

Having Cohort 1 live on AOC first will enable you to gain insight into your compliance status faster, allowing you to address gaps early and establish a strong foundation to demonstrate compliance.

Once you have the comfort of having Cohort 1 live on AOC we will commence the Remediation phase for Cohort 1. We will then repeat this process with the remaining cohorts.