Overview of the Scheme
Under the provisions of the Construction Industry Portable Paid Long Service Leave Act 1985, employees in the Construction industry have access to a portable long service leave Scheme funded by compulsory contributions from employers.
Administration of the Scheme
The Act is administered by the Construction Industry Long Service Leave Payments Board which is a body corporate of seven members who are appointed by the Government from nominations made by construction industry unions to represent employees and the Master Builders' Association and the Chamber of Commerce and Industry to represent employers.
Employers in the Construction Industry must register with the Construction Industry Long Service Leave Payments Board and are required to pay long service leave contributions to the Board every three months.
These contributions are invested in a Fund and are used to pay for the administration of the Scheme and to pay long service leave entitlements to Construction industry employees registered with the Board.
Registration in the Scheme
Every employer engaged in the Construction Industry must register with the Board. Registration is compulsory by law and there are penalties for non-registration.
To register, download the Employer Application brochure. Brochures are also available from the Board. Registration certificates confirming registration are sent to employers after their applications have been processed by the Board.
Definition of Construction Industry
The Construction industry includes the on site construction, erection, installation, reconstruction, re-erection, renovation, alteration, demolition, maintenance of or repairs to any of the following:
Buildings, roads, fences (other than farm fences), installation and major alterations to lifts and escalators, railways, airfields or other works for the passage of persons, animals or vehicles; breakwaters, docks, jetties, piers, wharves or works for the improvement or alteration of any harbour, river, or water course for the purposes of navigation; works for the storage or supply of water or for the irrigation of land; works for the conveyance, treatment or disposal of sewage or of the effluent from any premises; works for the extraction, refining, processing or treatment of materials or for the production or extraction of products and by products from materials; bridges, viaducts, aqueducts or tunnels, chimney stacks, cooling towers, drilling rigs, gasholders or silos; pipelines; navigational lights, beacons or markers; works for the drainage of land; works for the storage of liquids (other than water) or gases; works for the transmission of wireless or telegraphic communications; pile driving; structures, fixtures or works and the preparation of sites for any other above works; on-site fabrications, erections or installations of plant, plant facilities or equipment for any of the above buildings or works; works for the generation, supply or transmission of electric power.
Work not included in the Construction Industry
Work on ships, maintaining or repairing lifts or escalators, routine or minor maintenance or repairs by employees for an employer who is not substantially engaged in the Construction Industry.
Scope of Definition
Construction Industry work covers work on buildings whether commercial, industrial, or domestic, new or existing and includes the installation, maintenance of or repairs to fixtures or works for the use on any buildings.
It does not include work in an employers' workshop or factory
Employers
'Employers' are individuals, firms or corporate bodies in the Construction Industry who engage employees in the Construction industry under a contract of service or apprenticeship in a classification of work referred to in the list of Awards.
Employees
Please note that persons termed 'sub-contractors' who are hired mainly for their labour and who are paid on hourly or daily rates, regardless of the method of taxation, are employees for the purposes of the Scheme and must be contributed for.
Casual or part-time employees are also covered.
Corporate bodies such as partnerships, trusts/trustees and companies are not 'Employees' in terms of the Act.
Three Monthly Returns
A return is sent to every registered employer every three months.
This Return covers the previous three monthly period. The periods end in March, June, September and December each year. This Return must be completed and forwarded to the Board within 15 days after the end of each period.
The form must include the names of all employees employed during the three monthly period in the Construction Industry, details of days worked in the Construction Industry and the amount paid as 'ordinary pay due for paid leave' to the employees.
The Return is used to calculate the long service leave contribution payable to the Board in respect of employees.
No contribution is payable for apprentices but work details have to be completed on the Return.
A guide explaining how to complete the Return is supplied on the reverse of the Return form.
Ordinary Pay
'Ordinary pay' means the ordinary rate of wage (including all allowances) due to the employee when going on paid leave, excluding leave loading but including amounts such as rental allowance, utilities allowance, living away from home allowance etc (if these allowances are due to an employee when on paid leave) and based on a 38 hour week unless a formal industrial agreement provides otherwise.
Long Service Leave Contributions
Employers must make contributions for ALL the workers they employ in the Construction Industry, except apprentices, whether or not they are registered with the Board, for the days those employees are engaged on site in construction work. Contributions are calculated as a percentage of the employee's 'ordinary pay', as defined above, for those days.
The contribution rate can vary. For the latest rate please contact the Board.
Note: Contributions are payable by employers not employees. Long Service Leave charges are allowable as a deduction under the present tax laws.
Days in the Industry
A part day in the industry is counted as a full day for contribution purposes.
Joint Liability
Where two or more persons jointly employ any employees they each are liable for the whole long service leave contributions payable in respect of those employees.
Interstate Work
Employers who have employees who are domiciled in other States and who work in Western Australia may apply for exemption from paying long service leave charges if payments are made for those employees to similar long service leave Schemes in other States.
Employers who wish to continue payments on behalf of workers domiciled in Western Australia who are working outside the State, may need to apply to the relevant interstate long service leave bodies for exemption from paying into their Schemes.
Employees' Entitlements
The Board pays long service leave entitlements for registered employees at the ordinary rate of pay due to the employee for paid leave averaged over the last 12 months (220 service days) of service recorded in the Scheme.
Employees are entitled to 8 2/3rd weeks leave after 10 years of service (2200 days) in the Construction industry, regardless of the number of employers the employee has worked for.
Employees accrue 1 year's service for each 220 days worked in the Construction Industry and the maximum number of days that can be credited in any year to an employee is 220. An employee may claim leave on a pro rata basis after accumulating 1540 days (7 years) of service if the employee terminates or is terminated.
Where an employee who has completed not less than 1540 days (7 years) of service dies a pro rata payment will be paid to the dependent spouse or the estate of the employee.
Leave may not be taken in more than 3 periods or periods of less than 1 week. The employee's payment for the period of long service leave will be paid by the Board and calculated using the ordinary rate of pay due to the employee for paid leave averaged over the last 12 months (220 service days) of service recorded in the Scheme.
Notification of Long Service Leave
An employee who is entitled to long service leave should take that leave as soon as possible after the leave is accrued, having regard to the needs of the employer. However, the leave may be taken at a later date if both the employer and the employee agree to such an arrangement.
If the employer and the employee cannot agree then the Board may determine the period of leave to be taken.
Taking Leave in Advance
An employee with at least 1540 days (7 years) of service may take accrued long service leave in advance if the employer approves.
Employer Payment of Long Service Leave
An employee registered in the Construction industry Long Service Leave Scheme continues to accrue long service leave entitlements under the provisions of the Long Service Leave Act which applies to all Western Australian employees.
Due to this an employer in some cases may become liable to pay long service leave entitlements to an employee before that employee is entitled to long service leave under the provisions of the Construction Industry Long Service Leave Scheme.
When that situation occurs the employer must pay the employee for long service leave.
The employer then claims from the Board a reimbursement of contributions paid to the Board for that employee.
Powers of Inspectors
Inspectors employed by the Board have the power to enter the premises of an employer at any reasonable time of the day to inspect any books, records or documents for any of the purposes of the Act and to take extracts or copies of those records.
Inspectors will produce a certificate of appointment signed by the Chief Executive Officer identifying their appointment as an inspector.
Records and Penalties
Employers are required to keep records of every employee's name and address, date of birth, registration number, the classification applicable, starting and finishing dates and the number of days on site.
These records must be retained for a period of five years after the last entry was made. Penalties may be applied for obstructing a Board Inspector or failing to comply with any section of the Act.
Further Detail
This overview is necessarily a condensed guide covering the main provisions of the legislation and was prepared to give employers a general understanding of the Scheme.
Employers should contact the Board for formal advice concerning any particular matters of concern that may arise.
Copies of the complete legislation and subsidiary regulations governing the Scheme may be obtained from the State Law Publishers.
List of Awards
Australian Workers' Union Asphalt and Bitumen Industry (WA) Award 1988
Australian Workers' Union Construction and Maintenance (Consolidated) Award 1987
Australian Workers' Union Construction and Maintenance Award 1989
Australian Workers' Union Geomembrane and Geotextile Installation Award 1989
Bitumen Spraying Services Award 1985
Mobile Crane Hiring Award 1990
National Building Construction Industry Award 1990
Plumbing Industry (Qld and WA) Award 1979
Professional Divers' Award 1988
Sprinkler Pipe Fitters' Award 1975
Transport Workers' Spraypave Pty Lid Award 1990
Western Australian Civil Contracting Award 1998:
Airconditioning and Refrigeration Industry (Construction and Servicing) Award
Building Trades Award 1968
Building Trades (Construction) Award 1987
Earth Moving and Construction Award
Electrical Trades (Security Alarms Industry) Award 1980
Electronics Industry Award
Electrical Contracting Industry Award 1979
Engine Drivers' (Building and Steel Construction) Award
Foreman (Building Trades) Award 1991
Furniture Trades Industry Award (Cabinet making and Floor covering only)
Gate, Fence and Frames Manufacturing Award
Industrial Spraypainting and Sand Blasting Award 1991
Lift Industry (Electrical and Metal Trades) Award 1973
Materials Testing Employees Award 1984
Mechanical and Electrical Contractors (North West Shelf Project Platform) Award 1984
Metal Trades (General) Award 1966
North Rankin Construction Award
Pest Control Industry Award 1982
Platform Modification and Hook Up Agreement
Radio and Television Employees Award
Roof Tile Fixers Award
Sheet Metal Workers' Award
Thermal insulation Contracting Industry Award
Various Government Awards applicable to temporary employees only.
Drilling and Exploration Industry (AWU) Award 1998
Quarterly Returns
All employers registered with the Board are required to complete and submit to the Board a Quarterly Return showing the information required to be provided on the Return form.
The Return forms are sent to all employers at the end of each quarter by the Board and must be returned by the 15th of the following month.
Penalties apply for failure to comply with this requirement.
Please read the other sections of this web page for further information.
How to submit a return
The Returns are mailed out at the end of each quarter and are required to be either returned or input online by the 15th of the following month.
Employers may complete Returns manually and post them to the Board together with any payment due or complete the Return online through the Employer Login on the home page.
Instructions on completing the Return are included on the reverse side of the Return form or by using the help button on the employer logon screen of this web site. Board staff can also assist over the phone.
On site training is also available from the Board's Inspectors by arrangement. Please contact the Board for further information.
Wage rates
The wage rates to be used in determining the contribution to be paid to the Board are based on the ordinary rate of pay due to the employee for paid leave excluding leave loading but including amounts such as rental allowance, utilities allowance, living away from home allowance (if these allowances are due to an employee when on paid leave). If the employee is not due to paid leave then the ordinary rate of pay payable to the employee for ordinary hours (38 hours per week unless a registered industrial agreement provides otherwise) is to be used.
If you are unsure of the rate to be used the Board can offer assistance in determining the appropriate pay rate to use.
Please contact the Board for assistance.
Contribution rate
The contribution rate effective from 1 January 2009 is 2.25% (TWO POINT TWO FIVE PERCENT) of the ordinary rate of pay paid to the employee .
Note that the ordinary rate of pay is no longer the award rate. See Wage Rates for more detail.
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©2006 Construction Industry Long Service Leave Payments Board
