Scheme overview

The Long Service Corporation (LSC) administers a scheme which provides a portable long service benefit for eligible workers in the building and construction industry in NSW.

All benefits and requirements are determined by the Building and Construction Industry Long Service Payments Act 1986.

The scheme allows eligible workers in the industry to work for different employers or as contractors and qualify for a long service benefit that is paid for by a levy on building and construction work in NSW. The levy is collected by LSC and its agents and is invested in accordance with NSW Treasury requirements until required to fund long service payments.

Employers are required to advise LSC who worked for them during each financial year. Service is allocated to workers based on this information. Contractors can also record service and become entitled to a benefit. There is no cost to employers or workers to belong to the scheme however, employers do have legal obligations to meet.

The scheme does not have any direct relationship with entitlements to benefits that workers in NSW may have under the Long Service Leave Act 1955. Eligible building and construction workers may become entitled to benefits under both Acts however, both Acts specify that only one benefit may be received for any period of work. Where eligibility for a long service benefit arises under both Acts, the worker must nominate whether to take a payment from LSC or a period of paid leave from their employer. Entitlement to an employer benefit can occur where a worker has been with the same employer for 10 years or more. In certain circumstances, benefits may be available for shorter periods. Where the worker takes a benefit from their employer, the employer may be entitled to claim a benefit from LSC.

An independent Building and Construction Industry Long Service Payments Committee advises LSC on key issues of scheme administration and also hears and determines appeals on decisions made by LSC which affect workers, employers and in some instances, levy payers.

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