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Long Service Leave Payments

This page provides information on how long service leave payments are made when you take your leave.

Guide to further information on this page:
When can LSL payments be made?
How do I know how much LSL I am owed?
What if I am on night or afternoon shift?
How is the Rate of Pay calculated?
Wage Increases while on LSL
How is LSL taxed?
How are payments made?
Working Subcontractors: How do LSL payments work?
Working Subcontractors: How is Pay rate calculated?
Working Subcontractor Refunds
Additional payments - Extending your leave
Employer Liability - What is it?
LSL Payments with service in more than one State
LSL as a Termination payment (leaving the Industry)
Deceased Estates

When can LSL payments be made?

You can apply to CoINVEST as soon as

  • You have 7 or more years service in your service record with CoINVEST, or
  • 7 or more years service with CoINVEST plus other Interstate schemes, and
  • Your employer agrees to the leave (if currently employed).

You can request a claim form via your Worker details on this web site, or you may prefer to contact CoINVEST for a Long service leave claim form. If you are currently employed, both you and your employer need to fill in the details on the form and return it to CoINVEST.

In normal circumstances it takes about 4 weeks to process a claim payment.

How do I know how much LSL I am owed?

You can log on to your own CoINVEST record to check up on your service record and entitlement to long service leave, and request a claim form. Click on the Help button at the top of this page for more details.

You can also <contact CoINVEST between 8:00 am and 5:00 pm to speak to the staff in our Membership Services branch. They can answer your specific questions on Long Service Leave matters.

Each year, you will be sent an Annual Statement of Service, which shows details of your service for the last financial year, as well as your total service amount and LSL owing.

See topic Qualifying for LSL for more details about how long service leave is calculated.

What if I'm on night or afternoon shift?

Effective from 1 July 2006, the weekly amount at which long service leave will be paid will depend on the length of time you have been on a particular shift.

How long have you been on Afternoon/Night shift? What does this mean for any LSL payment from CoINVEST?
Less than 3 months Payment will be at your normal rate of pay before you started on the afternoon/night shift.
3 to 6 months Payment will be the average rate of pay that you have received over the last 12 months.
More than 6 months Payment will be at the afternoon/night shift rate that you receive now.

In all the cases above, eligibility to take leave is subject to the rules of the scheme.

How is the Rate of Pay calculated?

For workers who are currently employed: CoINVEST uses the worker's ordinary gross weekly rate of pay, including all allowances except for travel, fares and overtime payments.

Your employer supplies this information when filling in the LSL claim form you provide these details when you apply for your payment online.

For workers who are unemployed, on WorkCover or have left the industry, the same rate as above is used, but the amount is adjusted to reflect any industry wide pay rises that have occurred between the last recorded wage and the taking of the leave.

Working Subcontractors are paid in two ways, one for the "Worker Service" component of their LSL, and another way for the service they have contributed for themselves (see topic, "Working Subcontractors: How do LSL payments work?"). For the "Worker Service" component, they are paid their last recorded gross weekly wage as a worker, adjusted to reflect any industry wide pay rises that have occurred between the last recorded wage and the taking of the leave.

In the case of workers who earn very high wages, CoINVEST staff will contact the employer to make sure that no travel, fares or overtime payments are included in the pay rate.

Wage Increases while on LSL

If there is an industry wide pay rise while you are on LSL, you can still receive that pay rise. You need to provide CoINVEST with a letter from your employer to advise them of the amount and effective date of the increase. You will receive an additional payment for the difference between the old weekly rate and the new weekly rate, from the date the new rate took effect.

How is LSL Taxed?

If you are currently employed or unemployed, your long service leave payment is taxed at your usual PAYE rate.

If you have left the industry, your LSL payment is taxed at a lower rate as an Eligible Termination Payment. Please note that to qualify for this you need to have completely retired from the industry (if you are still working, e.g. as a salesperson, your normal tax applies.) In addition, for Termination payments, tax is levied at a variable rate according to the proportion of:

LSL for service before 15 August 1978: 5% taxable at 31.5%

LSL for service between 16 August 1978 and 15 August 1993: 31.5%

LSL for service after 15 August 1993: Normal tax rate for Termination pay.

How are payments made?

CoINVEST makes the majority of LSL payments by direct credit to workers' bank accounts. This is the method preferred by most people. You will need to provide the BSB number of your bank on the application form, as well as your account details.

If you wish, however, you can specify cheque payment when applying for long service leave.

Whether you are paid by EFT or cheque, you will receive payment advice in the mail, together with a free gift (specified on the application form).

CoINVEST will also notify your employer in writing of the long service leave amount paid to you.

 

Working Subcontractors: How do LSL payments work?

As a Working Subcontractor, you are paid differently according to whether the LSL you are taking was accumulated as a worker or as a Working Subcontractor. For your total Long service leave entitlement you will generally receive:

  1. A pro rata amount representing your months/years as a worker; taxed at the normal PAYE tax rate for that wage rate;
    and
  2. 2. A separate payment for the months contributed for as a Working Subcontractor, which is a refund of the contributions made together with interest earned. WSC contributions and interest are set at a level where this payment would be approximately equal to a worker's long service leave.
  3. Example: A worker has had 6 years and 3 weeks as a worker in the industry. He registers as a Working Subcontractor and contributes for himself for three years.

    He is then entitled to long service leave as follows:

    • 315 weeks worker service / 60 = 5.25 weeks long service leave
    • 36 WSC monthly contributions x 4.34 weeks = 156.24 weeks service = 2.6 weeks LSL payable as a refund of WSC contributions together with interest
    • Note, the Worker and WSC service together come to over 7 years - otherwise he would not be entitled to LSL in Victoria.
    • If he takes 5 weeks long service leave, it will all be paid as worker entitlement; if he takes all of his entitlement, it will be paid as 5.25 weeks x Weekly Wage Rate(Payment 1), plus the refund of his WSC contributions together with interest (payment 2).

    Non contributing Working Subcontractors do not accumulate service. If a non contributing WSC already has over 7 years in the industry as a Worker / Contributing WSC, he will be paid out for that entitlement and then will not earn any further LSL.

    Working Subcontractors: How is pay rate calculated?

    The normal CoINVEST rule for LSL payment is that we pay on the current rate. Many WSCs do not have an applicable current pay rate, because in most cases they have been working for themselves for many years.

    If a Working Subcontractor does have a "Worker Service" component in the Long Service Leave payment, CoINVEST takes the latest known weekly wage rate and adjusts it for industry pay rises, in the same way as for workers who have left the industry or who are on WorkCover (See How is the rate of pay calculated?)

    Remember - this is only for the "worker component" - The service gained as a Working Subcontractor is paid in a different way. See the previous topic on this page.

    Working Subcontractor refunds

    Although you cannot qualify for long service leave with less than 7 years' service, if you are a Working Subcontractor and have contributed for yourself, and you leave the industry without qualifying for long service leave, you can get a refund of your own contributions.

    If you have more than 7 years recorded service, your invoices plus the interest earned form part of your LSL, which you can take any time.

    To apply for a refund, you can either use a normal LSL application form or apply in writing including your bank account details.. If you have accumulated less than 7 years in the industry, you can apply for a refund of your WSC payments. Refunds of WSC contributions, where there is no LSL entitlement, are refunded without interest.

    However, interest payments are considered for illness, incapacity, domestic or other pressing necessity.

    Please call CoINVEST to discuss your reason and check your eligibility.

    Additional payments (extending your leave)

    If you are on long service leave and decide to extend your period of leave, you need to apply again on a new application form. If you are employed, your employer also has to indicate that he/she has approved the additional leave by completing Part B of the form.

    Employer liability - what is it?

    Some workers may be advised that part of their long service leave is employer liability, that is, to be paid by a certain employer. This can happen in two ways:

    1. Workers who have been in the industry for a long time

    Portable long service leave in the construction industry was only introduced in 1976-77 (1983 for Metal and Electrical trades). Therefore, workers who have extremely early start dates in the construction industry are governed by rules as to when CoINVEST begins to be liable for their long service leave.

    Building Trades Workers: Any full entitlement of 13.0 weeks for the first fifteen years and 4.33 weeks for every 5 years thereafter, falling due before 21.12.1973, is the liability of the employer the worker was with at that time.

    Metal/Electrical Trades Workers: Any full entitlement of 13.0 weeks for the first fifteen years and 4.33 weeks for every 5 years thereafter, falling due before 1.08.1983, is the liability of the employer the worker was with at that time.

    This rule doesn't apply to pro rata amounts of LSL - if you were a Metal trades worker entitled to 12.3 weeks Long Service leave as at 1.08.1983, that is CoINVEST liability. If you are entitled to 15 weeks long service leave, only the first "full" entitlement of 13 weeks is employer liability; CoINVEST will pick up the other two weeks LSL. How do I know if I have this type of Employer Liability?

    You will be informed on your annual Statement of Service, sent out every September - it is a separate category on the Statement. Please notify CoINVEST when your former employer has paid that LSL.

    2. Workers who have been promoted out of the scheme, or who perform a mix of on- and off-site work, and are employed continuously with one employer.

    Sometimes, a worker will be entitled to LSL in the usual way, because of continuous employment with the one employer for 10 years or more (remember, you still need 10 years service if not covered by the CoINVEST scheme.) If some of the work is covered under the scheme and some is not, the worker's service record will show less than 7 / 10 years service credit. However, if the employer can provide proof that the worker is entitled to LSL, in these cases CoINVEST will pay its share of the liability while the employer pays for the proportion of service that is not covered by CoINVEST.

    "Normal" Long Service leave still requires ten years for a pro rata entitlement. Therefore, if you leave the portable scheme with less than 7 years service, you cannot qualify for long service leave at 7 years, even if you have stayed with the same employer. You will need to wait until you have 10 years service.

    Example 1: Worker accumulates 6 years and 26 weeks service under the CoINVEST scheme. He does not change employers. He is then promoted to Supervisor with the same employer. His new job is not covered under the scheme, and he cannot gain any more service credits with CoINVEST. He cannot apply for leave from CoINVEST yet because he has less than 7 years service. However, once he reaches 10 years with that employer he can still take LSL, and CoINVEST will pay for 5.63 weeks of his entitlement.

    Example 2: Worker manufactures plaster elements such as ceiling roses, but he is only covered when on site. He accumulates 8 years and 15 weeks service with CoINVEST, but he remains with his employer for 10 years. When he takes his LSL, CoINVEST will pay for 7.18 weeks of his entitlement. However, he can take his CoINVEST component before he reaches 10 years, because he has more than 7 years under our scheme.

    How do I know if I have an Employer Liability component in my leave?

    This kind of Employer Liability does not appear as a separate category on your CoINVEST record. Your employer will advise you when you are eligible for long service leave. They need to provide proof of continuous service to us for CoINVEST to pay its liability.

    Long Service Leave Payments with service in different States

    If you are resident in Victoria and wish to take LSL, you only have to apply to CoINVEST in order to take advantage of the Interstate Long Service Leave scheme. CoINVEST will pay all of the LSL amount owing, then apply for reimbursement to the other States/Territories. This means you do not need to make multiple applications for one period of leave.

    Of course, you need to supply your registration number(s) with other State(s) when applying, to facilitate the processing of your claim.

    Payment rates: If you apply for LSL in Victoria, your entire LSL claim will be paid at your current rate in Victoria (see " How is the Rate of Pay calculated?" on this page).

    If you apply for LSL in ACT, South Australia, Western Australia or NSW, you will be paid at differential rates according to where your service was gained.

    For more detailed information on the Interstate Reciprocal Benefits scheme for portable LSL, click on the Interstate link on the navigation bar to the left of this page.

    LSL as an Eligible Termination payment (Leaving the Industry)

    If you are retiring, you can indicate that you are leaving the industry by ticking the appropriate box on the LSL application form.

    This means that you receive an "Eligible Termination Payment" lump sum which is taxed at a lower rate than standard LSL.

    The tax rates are as follows:

    • LSL for service up to 15 August 1978 : 5% taxable at 31.7%.
    • LSL for service from 16 August 1978 to 15 August 1993: Taxable at 31.7%
    • LSL for service after August 1993: Calculated at normal rate for Termination payments

    Please note that "Leaving the Industry" doesn't include working interstate or temporary periods out of the industry, if you intend to return to work in the construction industry.

    Deceased Estates

    If a worker has died and has an entitlement to long service leave with CoINVEST, the executor of the will can apply for the leave. This will be part of the worker's estate.

    From 1 July 2001, the estate of workers with 55 or more days service may claim a pro rata payment for that service.

    The Executor applies for the long service leave payment. No LSL Application form is required in this case. The claim is paid to "The Estate of...(worker's name).

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