Long Service Leave for construction workers
Long service leave is a paid entitlement granted to workers who stay with the same employer for an extended period, typically 10 years. However, in industries like building and construction where long-term employment with a single employer is rare, a unique solution exists.
The Long Service Corporation Scheme: A Special System for Construction
The Long Service Corporation in New South Wales was created to address the unique nature of employment in the construction industry. Instead of relying on continued employment with one company, workers can accrue long service entitlements as they move between employers—provided they remain in eligible roles within the industry.
For Workers: Simple Registration, Portable Benefits
Register with the Long Service Corporation.
Your registration follows you between employers as long as you remain in the construction industry.
Once you’ve worked 10 years in total, you become eligible for a long service leave payment, even if that time was spread across different jobs.
For Employers: Compliance and Reimbursement
All employers in the building and construction sector must register with the Long Service Corporation.
The leave payments are funded via a levy paid by property owners on construction projects.
Employers don’t carry the financial burden—the scheme reimburses them when workers take long service leave.
For Self-Employed Workers: Proving Your Service
Self-employed workers can still benefit under the scheme, but with added responsibilities:
Register as a worker with the Long Service Corporation.
Submit an annual Certificate of Service, prepared by your accountant.
Your service days are based on gross income, not hours.
If income meets or exceeds the award wage for the year, you’ll be credited with 220 days.
Lower income will result in a proportional credit.
For Working Directors: Dual Registration Needed
Company directors who perform eligible building or construction work can also claim long service leave:
Directors must register both themselves and their company with the scheme.
Administrative or sales work does not qualify.
If a director performs four or more hours of eligible work daily, they can accrue a reduced service credit.
For Contractors: Limited Eligibility in NSW
Contractors are not covered under the Long Service Corporation scheme in New South Wales.
However, contractors in South Australia may join a voluntary system called Construction Benefit Services. To claim leave:
Contractors must accrue 2,600 service days.
This provides a portable and flexible solution for long-term industry workers operating as contractors.
Final Thoughts
The Long Service Corporation scheme ensures that those committed to a career in construction aren’t penalised for moving between jobs. If you or your team are in the building industry, don’t leave this benefit unclaimed. Proper registration and ongoing compliance can result in a valuable paid break when you’ve earned it most.
Need help registering or managing your obligations? Dolman Bateman can assist both individuals and businesses in navigating their Long Service entitlements.
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.