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

What the Federal Budget means for you.

With a federal election looming, the 2019/2020 Federal Budget aims to deliver tax cuts to low and middle income workers and small businesses, superannuation tweaks for older Australians, and energy assistance payments. Keep in mind that a fair chunk of the below policies depend on the Coalition government winning re-election in May – although Labor has announced bipartisan support for some.  But here's what this year's Federal Budget essentially means for you.  Tax cuts for low- and middle-income earners. The government aims to reduce taxes for low to middle income earners through additional targeted offsets that aims to benefit over 10 million Australians.  The big winners from this year's federal budget are middle income workers earning between $48,000 and $90,000, who will receive an maximum tax cut of up to $1,080 for single earners. For a dual income family where two individuals earn in that range, the tax relief will total $2,160.  Labor says they'll support these per…

What will 19 hold for you?

Most of us are starting to think about getting back into work mode – or perhaps you are back at work already.
Don’t worry, this is not going to be one of those “let’s look back over the last 12 months” chats where we remember which celebrities are no longer or who won major sporting events.
What should you expect from the next 12 months? Well, nobody knows.  However, there is one certainty.  Markets will go up and markets will go down.  
Consider this.  The Australian equities market is still approximately 18% below where it was 11 years ago so there’s plenty of upside just to get back to where it was.  In terms of your superannuation, you need to consider your time horizon, i.e. how long will it be invested for before you can access it.
For a 35-year-old, they face another 30 years before they can access their super at age 65. Not only that, once they do retire at 65, they’re not going to take their super and spend it in one go.   They’re going to use it to produce an income in retiremen…