How employers benefit from the scheme

In summary, you as a registered building and construction employer under the Building and Construction Industry Long Service Payments Act 1986 (BCILSP Act 1986) may be entitled to compensation for a payment you make to a worker under the Long Service Leave Act 1955 (LSL Act 1955).

The detailed explanation!

Under NSW legislation, building and construction workers are covered by the BCILSP Act 1986 as well as the LSL Act 1955.

The BCILSP Act 1986 gives building and construction workers working in NSW access to a portable benefit. However, workers who are employed for 10 years by the same employer also become entitled to long service leave from that employer under the LSL Act 1955. In some cases of termination, workers may be entitled to a proportional payment for long service leave if they have five or more years service with one employer.

Click here to access information from the Office of Industrial Relations on the LSL Act 1955.

This means that workers may be entitled to a long service benefit under either Act. However, they can only be paid one long service benefit depending on which option they select.

Option 1:

The worker chooses to take long service from their employer which must be a period of paid leave. The Corporation will then refund the employer the long service value (as calculated by the Corporation in accordance with legislation) of any recorded service on the Corporation’s register which was included in the long service benefit paid by the employer.

Option 2:

The worker takes a long service payment directly from the Corporation which includes any service with their current employer. This means that the employer has no further long service liability for that period of service for that worker. Depending on the circumstances, such periods could be 10 years or more and represent a considerable saving to the employer.

In all cases, the Corporation will advise employers when the Corporation pays a long service payment to a worker who has long standing employment with one employer.

Payments made by the Corporation are calculated at the worker's award rate of pay or, where a certified agreement is in force, at the worker's rate of pay under that agreement.

Payments made by the Corporation do not include over award payments, or other informal arrangements to pay higher than the award rate or the agreement rate.

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