Rates of pay for long service leave payments
PURPOSE:
The purpose of this policy is to provide guidelines for determining the rate of pay to be used when making long service leave payments.
SCOPE:
This policy applies to all long service leave payments made under the Building and Construction Industry (Portable Long Service Leave) Act 1991 (the Act).
CONTEXT:
Sections 59 and 62 of the Building and Construction Industry (Portable Long Service Leave) Act 1991 provide formulae to be used in calculating long service leave payments.
The formulae have a common component "P" which is defined in each section.
This policy provides guidelines for determining component "P".
POLICY:
Long service leave payments to workers, personal representatives and employer payments
Component "P" will be the most recent verifiable rate of pay for ordinary time that last entitled the worker to accrue service under the Act.
Determination of Hours
For employees engaged under an Award or Certified Agreement, this will be the weekly rate of pay for ordinary hours worked (usually 36 or 38) as stipulated in the applicable Award or Certified Agreement. Overtime is NOT included in the calculation.
For employees not engaged under an Award or Certified Agreement (eg Forepersons) this will be calculated on the basis of a 38 hour week at the normal hourly rate.
For labour only subcontractors this will be calculated on the basis of a 38 hour week at the normal hourly rate.
Rates of Pay
A maximum wage rate applies.
The maximum wage rate (or capped rate) became operable for all claims from 1 January 2009 and is updated from 1 July each year. The current rate is displayed on the QLeave website - www.qleave.qld.gov.au
Verification sources of component "P" may include but are not limited to:
- Written certification by the employer that the worker is an employee
- A recent pay advice for the worker showing the rate of ordinary time wages.
If a rate of pay can not be verified, component "P" will be the current award rate of pay for ordinary time for the award classification at the time that the application was made.
Long service leave payments to reciprocal schemes
The rate paid is the rate applicable in the State or Territory where the claim is made up to the QLeave maximum wage rate. The QLeave maximum rate became operable from 1 January 2009 and is updated from 1 July each year. The current rate is displayed on the QLeave website - www.qleave.qld.gov.au
Component "P" will be the rate of pay used by the reciprocal scheme.
Increase in Award rate of pay during long service leave
If, during a period of long service leave, the Award rate of pay applicable to a worker who has been paid the Award Rate for a claim, increases to an amount greater than the rate the worker was entitled to be paid, the worker is entitled to be paid at the higher rate from the date the increase came into effect.
Decrease in Award rate of pay during long service leave
If, during a period of long service leave, the Award rate of pay applicable to a worker decreases, the rate of pay applicable from the date of effect of the decrease will be determined on the individual merits of each circumstance.
