When construction industry employers are liable for long service leave

Industrial relations

Licensed plumbing contractors who work in the construction industry may be liable for paying an employee's long service leave, instead of the employee claiming it from the MyLeave Scheme. If this happens, the employer can claim it back.

The MyLeave Scheme was created because it is unusual for construction industry workers to have long-term employment with one employer. Employees who register with MyLeave have 'portable' long service leave entitlements as they move from employer to employer.

MyLeave is funded by quarterly contributions from construction industry employers and is responsible for paying long service leave entitlements.

To be eligible, employees must be construction industry workers who work on site and have registered with MyLeave. They are entitled to long service leave after 10 years service in the construction industry, with a pro-rata entitlement after seven years.

When an employer may be liable for paying superannuation

An employee registered with MyLeave may continue to accrue long service leave entitlements under the Long Service Leave Act 1958.

This means an employer may be liable to pay long service leave entitlements to an employee who has seven continuous years of employment with them.

If this does occur, the employer can claim a recovery from MyLeave for that employee. This amount they can claim is based on the employee's average ordinary rate of pay for the last 220 service days in the industry, as submitted by the employer in their quarterly reports to MyLeave.

How to claim a recovery

The form for claiming recovery of long service leave is available from the MyLeave list of publications and forms.  

For more information and advice

Because this is a complex area, any employer who needs advice should contact MyLeave

There is information for employers and employees on the MyLeave website.