About the Scheme
The Black Coal LSL Scheme is a portable long service leave scheme for eligible employees working in the black coal mining industry. Employers of eligible employees are required to register with Coal LSL and pay a levy to the scheme.
Who it Covers
An ‘eligible employee’ includes a person who is:
- Employed in the black coal mining industry by an employer engaged in the black coal mining industry, whose duties are directly connected with the day-to-day operation of black coal mining.
- Employed in the black coal mining industry, whose duties are carried out at or about a place where black coal is mined and are directly connected with the day-to-day operation of a black coal mine.
- Permanently employed with a mine rescue service for the black coal mining industry.
It does not matter if the person is full-time, part-time or casual, works directly for a mine site, or works for a labour hire contractor.
What is the Levy?
The levy is a mandatory payment of 2.7% of ‘eligible wages’. The legislation has a complex definition of ‘eligible wages’, and care needs to be taken when calculating it.
There is no GST on the levy.
The levy does not come out of employee wages.
When can an Employee take Long Service Leave?
An employee is entitled to take long service leave after 8 years of qualifying service. Early access can be available in some circumstances such as redundancy, retirement and ill health.
What must be paid when an Employee takes Long Service Leave?
If an employee takes long service leave when employed, the employer must pay the amount according to their base rate of pay (including incentive-based payments and bonuses) that would have been payable had they not taken the leave.
Is the Employer fully Reimbursed for the Long Service Leave amount paid to an Employee?
Not necessarily.
The legislation requires the employer to pay the employee according to their base rate of pay (including incentive-based payments and bonuses) that would have been payable had they not taken the leave.
The amount the employer is reimbursed by CoalLSL is at the rate of the employee’s ‘eligible wages’ as defined in the legislation, usually the ‘eligible wages’ amount used in the last levy return form before the leave was taken.
Depending upon the situation the reimbursement to the employer may be less than what the employer was required to pay to the employee.
What happens when the Employment Changes?
The employee’s qualifying service stays with the CoalLSL. Future qualifying service adds to it, though may expire if the employee is out of the black coal industry for 8 years or more.
How does an Employer register with CoalLSL?
An employer can register electronically via the CoalLSL website. https://coallsl.com.au/employer/administer-lsl/levy
How often is the Levy Paid?
Employers must pay the levy monthly.
What else is Required?
Employers must give an audit report to CoalLSL annually that the levy was correctly calculated and reimbursements were properly claimed.
The audit must be by an independent auditor, according to the requirements of the legislation.
The audit report must be given within 6 months of the employer’s end of financial year.
Staying on Top of the Black Coal LSL Scheme
At WorkLegal our experienced team can answer your questions and put you on the right track. A range of fixed-price Initial Consultations will suit most people’s needs in quickly learning what their options are.
An Initial Consultation can be an ideal opportunity for you or your business to get answers about how the Black Coal LSL Scheme applies to your situation.
Are you unclear about the Black Coal Portable Long Service Leave Scheme and other workplace laws in the mining and resources industry? Contact us for early advice.
1300 223 398
Are you unclear about the Black Coal Portable Long Service Leave Scheme and other workplace laws in the mining and resources industry? Contact us for early advice.
1300 223 398ENQUIRE NOW
About the Scheme
The Black Coal LSL Scheme is a portable long service leave scheme for eligible employees working in the black coal mining industry. Employers of eligible employees are required to register with Coal LSL and pay a levy to the scheme.
Who it Covers
An ‘eligible employee’ includes a person who is:
- Employed in the black coal mining industry by an employer engaged in the black coal mining industry, whose duties are directly connected with the day-to-day operation of black coal mining.
- Employed in the black coal mining industry, whose duties are carried out at or about a place where black coal is mined and are directly connected with the day-to-day operation of a black coal mine.
- Permanently employed with a mine rescue service for the black coal mining industry.
It does not matter if the person is full-time, part-time or casual, works directly for a mine site, or works for a labour hire contractor.
What is the Levy?
The levy is a mandatory payment of 2.7% of ‘eligible wages’. The legislation has a complex definition of ‘eligible wages’, and care needs to be taken when calculating it.
There is no GST on the levy.
The levy does not come out of employee wages.
When can an Employee take Long Service Leave?
An employee is entitled to take long service leave after 8 years of qualifying service. Early access can be available in some circumstances such as redundancy, retirement and ill health.
What must be paid when an Employee takes Long Service Leave?
If an employee takes long service leave when employed, the employer must pay the amount according to their base rate of pay (including incentive-based payments and bonuses) that would have been payable had they not taken the leave.
Is the Employer fully Reimbursed for the Long Service Leave amount paid to an Employee?
Not necessarily.
The legislation requires the employer to pay the employee according to their base rate of pay (including incentive-based payments and bonuses) that would have been payable had they not taken the leave.
The amount the employer is reimbursed by CoalLSL is at the rate of the employee’s ‘eligible wages’ as defined in the legislation, usually the ‘eligible wages’ amount used in the last levy return form before the leave was taken.
Depending upon the situation the reimbursement to the employer may be less than what the employer was required to pay to the employee.
What happens when the Employment Changes?
The employee’s qualifying service stays with the CoalLSL. Future qualifying service adds to it, though may expire if the employee is out of the black coal industry for 8 years or more.
How does an Employer register with CoalLSL?
An employer can register electronically via the CoalLSL website. https://coallsl.com.au/employer/administer-lsl/levy
How often is the Levy Paid?
Employers must pay the levy monthly.
What else is Required?
Employers must give an audit report to CoalLSL annually that the levy was correctly calculated and reimbursements were properly claimed.
The audit must be by an independent auditor, according to the requirements of the legislation.
The audit report must be given within 6 months of the employer’s end of financial year.
Staying on Top of the Black Coal LSL Scheme
At WorkLegal our experienced team can answer your questions and put you on the right track. A range of fixed-price Initial Consultations will suit most people’s needs in quickly learning what their options are.
An Initial Consultation can be an ideal opportunity for you or your business to get answers about how the Black Coal LSL Scheme applies to your situation.