LeavePlus Victoria FAQs

What is LeavePlus?

LeavePlus is a portable long service leave scheme offered to all workers who perform construction work. It does not matter if the worker has been employed by one or many employers throughout their working life, they are entitled to claim their long service leave, and to be paid the benefits after working in the industry for seven years.

As LeavePlus is compulsory under the Act, all Victorian employers within the construction industry must be registered with the scheme under one of the following categories of registration:

• Incorporated companies: This will include any incorporated companies (e.g., Proprietary Limited, Pty Ltd, Limited or Ltd) and trustee companies; or
• Unincorporated businesses: This can include partnerships or sole traders.

If you fail to register, significant penalties may apply. As the employer, you may be required to make backdated contributions plus interest. Alternatively, LeavePlus may commence legal action to enforce the applicable penalties.

Who is considered a ‘worker’ under LeavePlus?

The scheme requires the following arrangements to be registered:

• Employers who have a contract of employment with a worker
• Principal contractors who have engaged subcontractors; and/or
• Subcontractors who have engaged other workers.

Which trades does LeavePlus apply to?

Generally, the LeavePlus obligations apply to all trades within the construction industry. Specifically, this includes:

• All building trades in the residential, commercial and industrial sectors;
• All electrical trades;
• Most metal trades, such as crane operators, onsite welders, maintenance workers etc.; 
• Most onsite construction works, such as joiners, cabinetmakers, staircase and pools and spa builders who install and construct onsite; and
• A foreperson who directly supervises workers carrying out covered trades as listed and is not onsite for more than 25% of the working day.  

Further information on the types of trades covered (or not covered) under the scheme can be found on the LeavePlus website.

What do I need to do?

Employers are permitted to engage workers to perform construction work for up to five days per month whilst unregistered. However, if this is exceeded, you are expected to register. Registration can be completed on the LeavePlus registration portal.

In addition, there are other requirements. These include:

i. Lodgement of returns

As an employer, you are required to report quarterly by submitting a ‘Workers’ Days and Wages’ form to LeavePlus. Following this reporting, LeavePlus will return an invoice that requires the employer to contribute 2.7 percent (percentage applicable as at 1 July 2009) of the total gross wages reported for their workers.

All statements must be accurate, as any lodgements that are false, misleading or omit certain information may be subject to further penalties. 

ii. Record keeping requirements 

As an employer you are also required to retain the following information and documents for seven years:

• All records of employment relating to workers who perform construction work;
• All records of lodgements to LeavePlus; and
• Any further information relating to any worker as required by LeavePlus.

I am a working director, do I need to make contributions for myself?

LeavePlus views a working director to be a worker under the scheme if two-thirds of the director’s employment is spent onsite and ‘on the tools’.

Accordingly, as a working director, you will need to register and record your service with LeavePlus, in addition to your workers. This will ensure that you can access your portable long service leave benefits from your seventh year of working in the industry.

What if I’m a sole trader or in a partnership? Do I need to make contributions for myself?

LeavePlus requires sole traders or those operating in a partnership to register as ‘working subcontractors’ (‘WS’). WS can choose to make contributions for themselves, or they can choose to not make any contributions at all.

If a WS chooses to not make any contributions, then the WS cannot make a claim for a long service leave benefit.

Further information about WS can be found in LeavePlus’ self-employed FAQs.

Can I pay my construction workers in another way?

All contributions must be made to LeavePlus directly. You cannot pay your workers directly or execute an employment agreement that tries to contract out, limit or change this requirement. Any attempt will void the agreement, and render the agreement unenforceable.

I haven’t contributed to LeavePlus on behalf of my workers, what do I do? 

This unfortunately can occur. If the reason for failing to register with the scheme was due to a lack of awareness, LeavePlus may waive any applicable penalties. The onus is on the employer to show that the false, misleading or omitted lodgement of statements resulted from an error made in good faith. Contact LeavePlus to discuss.

However, if the employer was negligent or simply refused to register, then LeavePlus may commence legal proceedings, and require you as the employer to make the requisite financial contributions plus interest for each applicable worker.

Should you find yourself in these circumstances, we encourage you to consider whether a waiver may be applicable. 

To find out more, contact HIA's Contracts and Compliance team

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