Long service leave is an employee entitlement received after an employee works for the same employer for a long period of time. Once an employee completes ten years of service, they are entitled to two months of paid leave.
As it is unusual for an employee in the building & construction industry to work for the same employer for 10 or more years, the Long Service Corporation Scheme was created. It is designed specifically for building & construction industry.
So how does the scheme work? It’s easy!
- Simply register with the Long Service Corporation.
- Once registered, you are able to transfer your registration between employers as long as you are continuously undertaking work within the building & construction industry.
- When you have worked a total of 10 years within the industry, you will receive a long service leave payment.
Companies within the building & construction industry must also register with the Long Service Corporation.
- The scheme will provide employers with a reimbursement for the long service leave their employees take.
- This reimbursement comes from a levy paid by the owners of the building or construction project that you are working on.
There are different requirements for self-employed workers to submit their service to the Long Service Corporation:
- Register as a worker with the Long Service Corporation.
- You must get your accountant to lodge a Self-Employed Certificate of Service (annually).
- The amount of service is formulated based on your income, not your hours worked. (Annual gross income from building & construction work less: losses and outgoings relating to materials and contracts for labour and services).
- If your income is equivalent to or greater than the award rate for one year, 220 days will be added to your record. If your income is less than the award rate, a proportional number of days will be added.
Company directors can join the Long Service Corporation scheme if they are performing eligible building & construction work. Directors must register twice in the scheme (their company as an employer; and themselves as a worker).
Sales/office work is not eligible work under the scheme. If a director does four or more hours of eligible work each day, a reduced credit can be recorded in the scheme.
Unfortunately, contractors do not receive long service leave with the Long Service Corporation scheme.
However, contractors operating in South Australia within the building & construction industry, can benefit through another organisation: Construction Benefit Services. Unlike the Long Service Corporation scheme, this is a voluntary scheme which allows contractors to earn and take long service leave. To be eligible to take long service leave a contractor must have accrued a minimum of 2,600 service days.