Building & construction industry workers: How much long-service leave are you leaving on the table?
Are you working in the NSW building and construction industry?
Are you registered with the Long Service Leave Corporation Portable Long Service Leave Scheme?
Every year, employees and self-employed workers fail to claim building and construction long service leave money that they’re entitled to.
Could you be missing out on what’s rightfully yours?
Who can claim building & construction long service leave?
If you’re an employee in, or are self-employed within, the building and construction industry in NSW, you’re entitled to long service leave.
The types of professions entitled to this benefit include:
- Civil construction workers
- Crane drivers
- Plant operators
- Pool and spa construction workers
- Trades assistants
How to start recording your service for long service leave
To be eligible for long service leave payments, you’ll need to register with the Long Service Leave Corporation.
They will provide you with a worker number. Some construction industry workers are surprised to find that they already have a worker number – having registered previously.
The next steps depend on your work status within the industry: there are different procedures for self-employed workers and for standard employees.
- Self-employed workers: each year, your tax agent will report your total income and prescribed costs (materials, labour and services). Your long service leave is calculated based on this information. Note that your leave is accrued based on your income rather than the period of work.
- Regular employees: your employer is required to be registered and report the period of employment for all employees working in the industry by 31 July each year. This includes start dates, end dates, and number of days worked for part-time employees.
If you are not registered, you are able to lodge service for up to two prior years.
If you feel you’re entitled to lodge service for more than two prior years, you can register with Long Service Leave Corporation, who will then record your service. Once your service is recorded you will be able to claim paid long service leave.
The above regulations apply in NSW. Note that, for other states and territories, there are also long service schemes for the building and construction industry that are part of a National Agreement.
This allows service recorded in more than one state to be added together to establish eligibility for benefits.
What happens if you change jobs or employee status?
Note that any accrued long service leave is transportable.
This means that, if you are working as an employee for any period, your employer is obligated to report your service. You may then work as a contractor for a period and your tax agent will report your service as self-employed.
Your long service leave is continually accruing whether you are working as an employee or are self – employed. You are not disadvantaged by changing who you work for or by becoming self-employed.
When can you claim long service leave payments from the Corporation?
- After 10 or more years of recorded service and are still working in the industry
- After 5 or more years of recorded service and you have permanently ceased work in the industry
- 55 or more days recorded service and you are totally and permanently incapacitated for work in the industry
- 55 or more days recorded service and you have retired from the industry at age 55 or more
- 55 or more days recorded service and you have been granted a veteran’s pension.
Need help claiming your building and construction long service leave. Call us on 02 4322 9044.