Court victory confirms construction leave entitlements beyond the building sector.

 

Millions of dollars in long service leave entitlements and ongoing liabilities may be owed from big businesses outside of the building sector following two landmark court decisions that clarify the scope of the ‘Construction Industry’ under Victoria’s portable Long Service Leave Scheme.

The Supreme Court has ruled in favour of CoINVEST Limited (trading as LeavePlus), the administrator and regulator of portable long service leave for the construction industry in Victoria, in two key cases – Detector Inspector Pty Ltd v CoINVEST Ltd and EnergyAustralia v CoINVEST Ltd.

Both rulings confirm that, regardless of the predominant character of their Employer’s business, employees who perform Construction Work in Victoria are entitled to portable Long Service Leave. This means that if Construction Work is part of the business’ overall purpose, Employers must contribute to LeavePlus for their Workers.

In the case of Detector Inspector, the court ruled that work involving the mandatory safety checks and maintenance of residential property systems, including smoke alarms, and electrical and gas appliances, qualifies as Construction Work. Similarly in the case of EnergyAustralia, maintenance and repair of power generation infrastructures was considered to be Construction Work.

Chief Executive Officer of LeavePlus, Craig Bell, says these breakthrough decisions validate LeavePlus’ long-standing interpretation of the Act and the Rules governing the Scheme.

“We’ve always understood that Construction Work under the LeavePlus Scheme extends beyond work that is done on new construction sites, and the outcomes of these cases has provided much-needed clarity around that understanding,” Bell said. “If you employ Workers performing Construction Work, you’re covered by the Scheme even if you wouldn’t describe your business ordinarily as being in the Construction Industry.”

Bell urges businesses across all industries that may have employees performing Construction Work to reassess their industrial obligations and ensure they are compliant.

He said, “These court decisions clarify the inclusion of industries that may have previously doubted their participation in the LeavePlus Scheme. Whether they are providing services in the energy, rail, or telecommunications, or any other industry, these rulings invite any business with employees that perform Construction Work to do the right thing and contribute to LeavePlus in accordance with the law.”

According to Bell, many thousands of Employers in Victoria are currently not complying with their obligations to pay Long Service Leave Charges to LeavePlus. LeavePlus intends to use the court’s decisions to educate leading Employers in key industries such as energy, home maintenance, and telecommunications in Victoria about their obligations, offering them an opportunity to comply with the Scheme as part of the regulator’s initial round of industry audits.

Jenny Acton, Chair of the Board of Directors at LeavePlus, emphasised the importance of these rulings for the future of the Scheme. She said, “These decisions provide essential clarity on the scope of the LeavePlus Scheme and are a crucial step towards creating a more equitable and stable framework for Long Service Leave in the Construction Industry.”

LeavePlus remains committed to ensuring a fair, robust, and consistent portable Long Service Leave system for Victoria’s Construction Industry. Employers and Workers seeking further information are encouraged to visit the LeavePlus website: www.leaveplus.com.au

For media enquiries and requests, please contact:

Nielyn Jumao-as, Account Executive at narrative

E: nielyn@narrativecomms.com.au | M: 0435 713 590

 

For further information about LeavePlus, please contact:

Michael Smolders, Chief Product and Experience Officer at LeavePlus

E: michael.smolders@leaveplus.com.au | M: 0418 921 519

 

 

About CoINVEST (LeavePlus)

CoINVEST Limited (trading as LeavePlus), a public company, is the regulator and administrator of the Portable Long Service Leave Scheme, established under the Act and the Rules. LeavePlus provides portable long service leave benefits to eligible workers within the Victorian construction industry, funded by compulsory charges payable by all employers in the industry.

 

Share this article: