Current at: 27 February 2009
Portable Long Service Leave in Victoria - Working Subcontractors
Background
CoINVEST is Victoria’s compulsory construction industry portable long service leave scheme. All employers, subcontractors, workers and apprentices in the construction industry must be registered with CoINVEST.
The scheme requires employers in the building and construction industry to make long service leave contributions to CoINVEST where they have eligible workers. CoINVEST pays for workers' long service leave, relieving employers of any financial responsibility.
Workers v Working Subcontractors
To determine whether you are, or you engage, a worker or a working subcontractor, consider the following factors:
Worker
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Working Subcontractor
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A long period of continuous work for one employer suggests an employee relationship
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Will work for a number of different clients, not just one boss.
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Employer is responsible for Superannuation, Redundancy payments, sick pay, Overtime allowances, Workcover etc.
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These are the person's own responsibility.
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Employer exercises control over employee's hours, work methods, etc. There is direct supervision.
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Person is responsible for their own hours and work methods, must make good faulty work.
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Person has little or no independence, can't enter into different contracts, can't advertise in the paper or submit quotes without reference to employer
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Person is free to enter into contracts without reference to anyone else, can advertise in the paper or enter into a new contract.
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Bears no risk and receives no gain apart from specified daily, hourly, weekly or piece rate
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There is financial risk involved. The costs may ending up outweighing returns, or there is the opportunity for gain.
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Probably provides no tools, or at most "personal" tools - no machinery. Probably not required to provide materials or transport between sites.
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Generally responsible for all tools, machinery, skips, etc; materials (including order and delivery) and transport.
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Person will be paid on a regular basis (usually weekly) in a defined manner, e.g. a specific rate per hour.
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Aside from any agreed instalments, the person will be paid per job, or per job stage ("Price Per Job)
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There will be an agreed rate of pay per hour or day and agreement over other conditions such as Annual Leave.
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A contract exists specifying the total outcome and amount to be paid. There will probably be no payment for holidays.
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In Law, a "Master-Servant relationship" exists
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Person is a separate unincorporated business entity
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An employer who engages a worker to perform “construction, erection, installation, reconstruction, re-erection, renovation, alternation, demolition and certain maintenance or repair work”, on site must make contributions to CoINVEST on their behalf.
Registration as a working subcontractor
Working subcontractors operating in the construction industry (in Victoria) are required to register with CoINVEST. However, you do not need to contribute for your own service in the industry, contribution as a working subcontractor is optional.
Working subcontractors are required to pay at least $30 per month to be entitled to benefits under the scheme. Contributions must be made every 3 months.
How to register?
To register yourself as a working subcontractor or a worker you will need to contact CoINVEST on 1800 805 844.
What happens if I used to be a worker and now I am a subcontractor?
If you were employed your employer should have contributed to CoINVEST on your behalf. All time you serve as a worker will be credited towards entitlements under the scheme.
If you become a contractor and still wish to contribute to the scheme then you must contact CoINVEST to register as a contractor. However, only time served as a contributing working subcontractor will be credited towards entitlements under the scheme.
What are my entitlements?
You will be entitled to payments under the scheme where your service (combined worker and contributing working subcontractor) comes to over 7 years. As a working subcontractor, you are paid differently according to whether the Long Service Leave you are taking was accumulated as a worker or as a contributing working subcontractor.
Generally you will receive:
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A pro rata amount representing your time as a worker; and
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A separate payment for the months contributed for as a working subcontractor, which is a refund of your contributions made together with interest earned.
Working Subcontractor refunds
Contributing working subcontractors can get a refund of their own contributions if they leave the industry without qualifying for long service leave (without 7 years service). You must apply for a working subcontractors refund in writing, using a Long Service Leave application form (available by request from CoINVEST).
Only contributions made as a working subcontractor can be refunded (not contributions made on your behalf as a worker). No interest is payable on refunds of working subcontractors’ contributions.
For further information call the HIA Memberline on 1300 650 620