Skip to main content

Are You Entitled to Long Service Leave in the Mining Industry?


I often get asked about eligibility for long-service leave.

There seems to be a little bit of confusion surrounding this topic. 

Traditionally, long service leave applies to an employee who has been with the same employer for several years (typically 8-10).  

Depending on the industry, an amount of leave is available after that time.  For example, some industries provide 1.3 weeks of long service leave for each completed year of service.  After 10 years they are eligible for 13 weeks.

Of course, if you leave that employer prior to the 10 years, it’s unlikely any accrued amount will be paid out and in most cases, it’s not transferable to the next employer.

In the Coal Mining Industry, things are a little different.  In 1992, the Australian Government introduced the Coal Mining Industry (Long Service Leave) Administration Act. 

It’s a complicated piece of legislation.  However, the idea is to allow eligible employees to transport their accrued long-service leave from one employer to the next. 

Eligibility is based around length of service to the industry rather than length of service to an employer.  

If an employee has periods of qualifying service that add up to 8 years, then they are eligible for long service leave (there are a few other eligibility criteria). 

The amount of leave is calculated using a formula based on working hours. Click here  to view a copy of the legislation.

Importantly though, eligibility for this leave has nothing to do with your superannuation fund.  

I have had several enquiries from people believing that they are required to be a member of a specific superannuation fund or funds to maintain their eligibility for this leave.  This is simply not the case.  

Some super funds have previously been involved in the administration of the Act but this has nothing to do with eligibility.  

Where you choose to invest your superannuation is up to you.  For most people they can nominate a complying fund and have their employee pay into this fund.  This option was introduced by the government in 2005 and is called Super Choice.

What does this mean for Coal Mining Industry workers?

Put simply, you can choose investment options for your superannuation based entirely on your needs without being concerned about losing your eligibility for your long service leave.

Want to discuss this topic more or have a free review of your latest super statement? Let's chat on line, over coffee or phone.  Use my online calandar to make a time that suits you. 



Popular posts from this blog

Do Aussies Still Want a Job in The Resources Industry?

Last week I read an article titled “Why Aussies aren’t rushing to fill the thousands of vacant mining jobs.”  See the below article extract:
“As the limping industry picks up again, and global companies including BHP, Rio Tinto and Fortescue start construction on new mines, a lot of Aussies who made those exact companies millions of dollars aren’t as ready to jump on a plane.

Five years ago, Australia was in the middle of one of its biggest mining booms in history.

Thousands of people became fly-in, fly-out (FIFO) workers, spending four weeks battling through 12- hour days and then jetting back home for a few days to see their families — before doing it all over again.

The salary was great, often cracking more than $150,000, but the sacrifice was even greater.

The FIFO profession earnt itself such a bad reputation that a number of Aussies who worked in the first boom have said there’s no way they’d go back again.”

Obviously, this is not a new school of thought for some of us.In fact, I’ve p…

Unlocking the Mystery of your Super Statement

Superannuation statements. Boring, right? But if, like many people, you toss your annual super statement in a drawer or hit delete, you could be depriving yourself of many thousands of dollars just when you need it. It’s worth the small effort to take a closer look at your superannuation statement. If everything is in order, you’ll get a warm glow from watching your nest egg grow. Conversely, a quick check of your statement may reveal some of the common problems that occur with super; and the sooner these are fixed the quicker your savings can increase. What to look for The layouts of statements vary between super funds, but there is standard information that must be provided. Some items may appear in summary form, with a detailed breakdown shown elsewhere. Here are the key things to look for: ·Contributions or funds in. This will cover employer and personal contributions, government contributions and rebates, plus any rollovers. If you’re an employee earning more than $450 per month, yo…