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Long Service Leave Charges

LeavePlus calculates how much you need to pay based on your workers’ ordinary pay. Find out how charges work and where your payments go.

Employers pay a charge based on ordinary pay for the relevant work their employees do. This money goes into a fund that pays workers their long service leave.

Ordinary pay includes the gross amount you pay a worker and includes:

  • shift loadings
  • site or tool allowances or
  • qualification allowances.

It does not include:

  • travel or fare payments
  • living away from home allowances
  • leave loading
  • payments for work done outside or beyond the worker’s normal hours.

Employers pay a charge based on ordinary pay for the relevant work their employees do. This money goes into a fund that pays workers their long service leave.


Where the charges go

The charges you pay go into a central fund managed by LeavePlus. This fund makes sure workers are paid for their long service leave when they need it. It’s a fair system that supports the whole industry.

Keeping it fair for all employers

The 2.7% charge applies to all eligible workers, no matter the size of your business. It is a cost you cover as an employer and is not deducted from workers’ wages.

What happens if you don’t report or pay on time

You may have to pay interest on the overdue amount if you:

  • don’t submit your return on time (this is a criminal offence and you may be prosecuted)
  • submit it late
  • don’t pay your invoice within 14 days.

 


Verifying wages for worker claims

Sometimes, we will ask you to confirm a worker’s pay, including when they make a long service leave claim. If a worker has been with you for the past 4 reporting quarters, we will offer them an average rate based on your submitted returns. If they accept it, we will pay their claim using that rate.

If the worker doesn’t accept the average rate, or wasn’t eligible for it, we will ask you to verify their actual pay. You will receive an email when a wage verification is needed. Log in to the LeavePlus portal and go to the ‘Wage verification’ tab. You will need to enter:

  • ordinary weekly hours, minus rostered days off
  • hourly rate
  • any allowances.

We will process the claim after you submit this information.
If the rate seems too low or too high, LeavePlus might adjust it. If we propose to reduce the rate, we will let the worker know and give them a chance to respond.

You can pay your invoice by credit card (Visa or MasterCard only) or by BPay.

Log in to the LeavePlus portal, then

  • Select ‘My WDWs’ from the menu
  • Select the Workers Days and Wages return period which you would like to pay for
  • Enter your credit card details to pay the invoice or use the invoice’s BPay reference code to pay using online banking.

Please note that the BPay reference code is unique to each invoice. Ensure you use the correct reference code for the invoice you are trying to pay. Using an old or incorrect reference could result in your payment not being processed.

Some Employers prefer their outgoings to be monthly rather than quarterly. LeavePlus provides employers with the ability to pay off a portion of their quarterly invoice in advance with optional prepayments.

The prepayment amount can be entirely of your choosing. There is no set amount. Most employers who do prepayments opt to estimate around one-third of their estimated invoice for each prepayment. The table below is an example of a prepayment using an estimate.

Jan prepayment Feb prepayment Invoice total (Jan to Mar) Balance owing (less prepayments)
$1,400.00 $1,500.00 $4,575.25 $1,675.25

Once you receive your quarterly invoice, you can pay off the balance owing (full contribution amount minus any prepayments).

To begin making prepayments, simply select the ‘Receive prepayments’ tick-box on the Employer details page in the LeavePlus portal.

You will receive an email when each monthly prepayment voucher is available to pay online. Prepayment vouchers can be paid via credit card or BPay.

Please note prepayments are available for the first 2 months of each quarter. We do not issue a prepayment voucher for November because we issue our October to December Workers Days and Wages returns earlier than usual due to the industry shutdown over the Christmas holidays.

It may be the case that you have not recorded past service for one or more of your Workers. In order to comply with your legal obligations you must supply the missing information to LeavePlus. You must provide the number of days worked and total Ordinary Pay for each financial year in which each Worker was employed to perform covered work. LeavePlus will then adjust each Worker’s service record to reflect the additional days and invoice you for any additional charges owing.

For apprentices who are missing service, you still need to complete the form and advise of the days worked in each year where service may be missing. You do not need to provide any details regarding wages for apprentices. LeavePlus covers the liability of apprentices up to the first 1,040 days (4 years) of any VRQA certified apprenticeship. This means there are no charges on the part of the Employer for apprenticeship service.

Backdated adjustment charges may contain statutory interest charges due to non-compliance with your employer obligations. These charges are payable to LeavePlus in accordance with the Rules of the Scheme and Section 5 of the Construction Industry Long Service Leave Act 1997.

Read more about how to backdate service for your Workers on the Employer Missing service page.

If you are not able to pay your invoice by the due date and would like to discuss your payment options, please contact our Arrears Team on 03 9117 0866.

For more information about your obligations, please visit our Employer Obligations page.

Please note, all payment plans are subject to additional statutory interest charges in accordance with Section 5 of the Construction Industry Long Service Leave Act 1997.

Long Service Leave Charges are based on a percentage of Ordinary pay rather than a set dollar amount. This keeps the charges uniform and fair between larger and the smaller Employers. It means that each Employer pays their fair share proportionally to fund the Scheme.

The rate is agreed in advance by our Board of Directors and reviewed yearly taking into account actuarial advice. The current rate of 2.7% has been in place since 1 July 2009. The contribution rate is agreed upon and implemented to match market conditions so that LeavePlus can provide the best service to its members in administering the long service leave Scheme.

There is no charge for VRQA certified apprentices. LeavePlus covers the liability for apprentices for up to 4 years (1,040 days) of any covered apprenticeship.

Employer Reimbursement:

Where an Employer has paid long service leave directly to a Worker but also reported service to LeavePlus for the relevant period, the Employer may be entitled to reimbursement from LeavePlus of ‘our share’ of the payment. Our share is calculated in proportion to the service reported to LeavePlus for that Worker.

Employers can submit a Reimbursement claim in the LeavePlus portal. Log in to the portal and select ‘My Claims’ from the main menu. Choose the Worker from the list who the reimbursement claim relates to, then enter all the required information. The details you submit in your completed form enable LeavePlus to work out how much of the long service leave payment is to be reimbursed back to you.

Employer reimbursement claims must be submitted within one year of you making your long service leave payment to the Worker.

Shared Liabilities

Long service leave liability may be shared between LeavePlus and the employer in the case of:

  • Partially Covered Trades: Workers with less than 7 years with LeavePlus but over 7 years with the same employer.
  • Promoted Out of the Scheme: Workers with less than 7 years with LeavePlus but over 7 years with the same employer.

Service Accrual Rates pre-2002 and post-2002

A Worker’s Long Service Leave Entitlement may be calculated differently depending on when the service was accrued:

  • Before 1 July 2002: 0.866 weeks of leave per year (13 weeks after 15 years).
  • After 1 July 2002: 1.3 weeks of leave per year (13 weeks after 10 years).