The legislation governing the Scheme provides for a portable long service leave Scheme for employees in the construction industry based on service to the industry rather than service to a single employer
Most employees in Western Australia are covered by the Long Service Leave Act, which was amended in 2006 to provide increased long service leave benefits.
That Act gives employees an entitlement of 8 2/3 weeks leave after 10 years with the one employer and a pro rata entitlement after 7 years with the one employer. If an employee ceases employment with an employer before 7 years is served then the employee is not entitled to any accrued long service leave.
The Construction Industry Portable Long Service Leave Scheme (the Scheme) mirrors these benefits (effective from 1 October 2006) but has the additional benefit of portability of service which allows employees to accumulate a long service leave entitlement by working in the industry for at least 7 years.
Instead of accumulating service with just one employer, employees who are registered in the Scheme carry their accrued long service leave from employer to employer.
This is the portable nature of the Scheme.
When employees have accumulated at least 7 years service in the construction industry they gain a long service leave entitlement under the Scheme and can lodge a claim for long service leave with the Board. The Board then pays the employee for the leave entitlement. The Scheme has the same conditions for gaining an entitlement as is applicable to employees working in other industries. That is employees must have a minimum of 7 years service recorded in the Scheme to gain an entitlement, except that they can accumulate their qualifying service across all their employers.
To meet the costs of the Scheme and to pay for the long service leave benefits accumulated by employees, employers pay a levy for employees employed in the industry based on the employee’s ordinary rate of pay for paid leave. The Board retains these monies in a central fund, which is invested in order to keep the levy on employers as low as possible.