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. 



Labels:
Location: level 4/33 Remora Rd, Hamilton QLD 4007, Australia

Comments

Post a Comment

Popular posts from this blog

Times are tough. How can you position yourself to minimise the impact?

The last few weeks have been extraordinary to say the least. We’re battling a world wide health crisis and we face uncertainty in many aspects of our lives.  It’s true that there are simply some things beyond our control and we will more than likely see many changes to our everyday lives for the remainder of 2020 and beyond. So, what can be done?  On the other side of this, many people will be left with dramatic financial stress, whether it be periods of unemployment, depleted cash reserves or battered superannuation balances.  And for many, timing will be an issue. Those who were weeks ago contemplating retirement may now need to change their plans. And those that are still accumulating for retirement have more than likely just seen their investments and superannuation return to levels of 5 or 6 years ago. Essentially the clock has be wound back in one way or another.  It may well be a good time to take stock and lay some foundations for when thing...
Post a Comment
Read more

There is no better time than right now to review your super!

So by now we all know that Australian and global investment markets have fallen significantly, it’s on the news, in the papers and I’ve been publishing recent posts about it on LinkedIn. What’s causing it?   Truth is, it doesn’t really matter.  Oil prices are down, there’s talk of China slowing, commodity prices are down and so forth.  Historically there is always something occurring on the world stage that can cause negativity in markets.  Investors start to worry, they sell their investments at low prices, lock in losses only to have someone come along, buy them up and enjoy the gains as things recover. Warren Buffet, the world’s most famous stock market investor famously said, “The stock market is a device for transferring money from the impatient to the patient”. And we can see this today.  As I write this, global stock markets suffered a large decline over night, with the expectation being that the Australian market would follow this morni...
Post a Comment
Read more

Are You Starting Again?

For those of you currently working in the resources industry, you would no doubt understand that the potential downside is the punishing rosters and long periods away from home that can take a toll on your family and personal life. Sure, the money is good for the most part, but it comes at a cost. Unfortunately, many marriages suffer irreparably and many industry workers find themselves having to “start again” after relationship breakdown and divorce.  It can be an extremely difficult time and apart from the emotional strain, there’s the stress of having to rebuild financially.  Quite often, you may find yourself in a situation where you’re left with minimal assets and essentially must start again. In this situation, it’s critical to make sure you have your superannuation structured and invested correctly. If you’ve come through a divorce with your superannuation intact, it may end up being your biggest asset. You really need to get it working for you. The othe...
Post a Comment
Read more