Eligibility and benefits for building and construction workers
Learn about eligibility requirements for the building and construction industry portable long service payments scheme and the benefits it provides to workers in NSW.
About the scheme
As a statutory body of the NSW Government, Long Service Corporation (LSC) manages portable long service schemes, including for the building and construction industry.
The portable long service payments scheme (the scheme) allows eligible building and construction workers to receive long service benefits without having to work with the same employer for 10 years.
The scheme's benefits and requirements are defined by the Building and Construction Industry Long Service Payments Act 1986 (the Act).
Under the Act, eligible workers who have 10 years of recorded service in the industry are entitled to long service payments even if the worker:
- worked for multiple employers, or
- was a contractor, such as a self-employed worker.
Benefits of the scheme for workers
You can get a long service payment after working in building and construction for a total of 10 years. It does not matter:
- how many different employers you have worked for, or
- whether you have been a contractor.
After taking a payment for the first 10 years, workers can take another one month's pay every 5 years.
A worker who has been employed by just one employer for 10 consecutive years is still entitled to 2 months' long service leave. They can choose to:
- have their employer pay for their time off, or
- take a long service payment directly from the scheme.
If the worker chooses to take a long service payment directly from the scheme, they do not get any time off and the employer pays nothing.
If they take leave with their employer, the employer can seek reimbursement from the scheme.
Benefits may be payable to workers with less than 10 years’ service in certain circumstances.
Eligible work
The Act defines building and construction work and the building and construction industry.
Most work within the industry is covered by the scheme. This includes some work in the mining industry where trades, operators and activities overlap.
Eligible work is done:
- in the private sector
- in the NSW building and construction industry
- under a recognised award.
Types of work partially covered by the scheme
Some types of work are only partially covered by the scheme, such as:
- certain types of supervisory work
- some work on mining leases or mine sites, such as work that may overlap with Coal Long Service Leave.
Learn more about mining eligibility and coverage of supervisors.
Workers who are also eligible under the Long Service Leave Act 1955
The scheme does not override the obligations of the Long Service Leave Act 1955 (the 1955 Act) and does not have any direct relationship with entitlements to benefits under the 1955 Act. Workers eligible for an entitlement under both Acts can choose:
- to take paid leave through their employer, or
- a lump sum payment from LSC.
Learn more about choosing to receive entitlements from your employer or LSC.
Joining the scheme
The scheme covers full-time, part-time and casual workers and contractors who do eligible building and construction work in the industry for which there is a rate of pay under a recognised award. Workers who the scheme covers include anyone who:
- spends the majority of their time performing eligible building and construction work for an employer or as a contractor in the building and construction industry
- directly supervises other workers in the industry who also spend the majority of their time doing building and construction work.
The building and construction industry is the carrying out of the following works to buildings and infrastructure:
- construction
- reconstruction
- renovation
- alteration
- demolition, maintenance or repairs of, or to, buildings, for example.
The Coverage Index summarises the types of building and construction work covered by the scheme.
Building and construction work is the carrying out of work for which a rate of pay is fixed by a prescribed award. The awards are listed in the Regulation to the Act.
Workers the scheme does not cover
The scheme does not cover:
- government workers
- workers who are not performing eligible building and construction work
- work on Commonwealth land or a Commonwealth place (places owned or controlled by the Australian Government).
Checking your eligibility to register in the scheme
Your employer can register you in the scheme, including casuals, or you can register yourself. You will need to determine if you are:
- a worker in a business, or
- a contractor.
You can find out if you are a worker or contractor by visiting the ATO and Fair Work websites.
You may also be an worker or contractor if you are a:
- partner in a partnership
- trustee or a working director.
Find out more by reading the contractor information sheet.
Employers have a legal obligation to record employment for all workers who perform eligible building and construction work in NSW within 7 days of commencing. Penalties may apply if not lodged within this timeframe.
As Commonwealth places fall under the jurisdiction of the Commonwealth Government, work conducted on Commonwealth places cannot be credited under the Act.
Registration for apprentices can start as soon as they work in building and construction. Workers employed as labourers or trades assistants before starting their apprenticeship are also eligible to have service recorded for this time.
You will not be eligible to register if you are an apprentice working with a:
- government organisation, or
- local council.
You will be paid at the rate under the agreement if you are under a certified agreement, unless you:
- are a working director, or
- directly supervise workers.
If you are a working director or directly supervise workers, you will be paid at the rate under the agreement or applicable award for the workers being supervised.