Long Service: Building and Construction Industry Essentials

StuartBusiness Process, Uncategorized

Did you know we spend about 80 per cent of our lives working?

Under the Long Service Leave Act 1955, once an employee reaches 10 years of continuous service with an employer, they become eligible for Long Service Leave. This time can then be taken by the employee for an extended break or in some cases can opt to receive a cash out of the leave entitlement.

As discussed in our earlier blog (Long Service: What Building and Construction Industry Employers Must Know) the Long Service Corporation is an entity that administers long service on behalf of employees and employers.

Registration in the scheme is essential

An online membership portal enables eligible workers to work for various employers or as sub-contractors and recognises their years of continuous work. While employers would normally register a worker new to their organisation, eligible workers may register themselves to ensure they obtain the benefits of the Scheme if they are not certain that their employer has registered them.

Self-employed workers can also register themselves so they too can access long service entitlements.

Long service entitlements

Eligible workers receive a cash payment upon 10 years service in the industry. This is paid at 8.67 weeks for 10 years of recorded service based on award rates of pay or the rate of pay under a registered enterprise bargaining agreement.

Where an employee is eligible for long service recognition under both schemes (Government and the Corporation), they must nominate which benefit they will access.

Employer benefits

Employers of eligible workers who are registered with the scheme who pay a long service benefit to a worker under the NSW Long Service Leave Act 1955 can be paid a claim for part or all of that benefit paid. The claim is calculated for that portion of the benefit paid by the employer where the time spent working in the industry by the worker has been recorded by the Corporation.

To obtain this benefit the employer must also be registered with the Corporation as an employer in the NSW building and construction industry.

Important Note: There is no cost to employers or workers to be in the scheme, however, employers do have legal guidelines to follow.

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