Information for casuals

Casual employees in the black coal mining industry have coverage under the Coal LSL scheme if they meet the eligibility requirements set out under the Coal Mining Industry (Long Service Leave) Administration Act 1992 (Admin Act).

To be entitled to access Coal LSL’s scheme, a person must be employed by a national system employer, meet the definition of an ‘eligible employee’ under the scheme, and be paid ‘eligible wages’.

The definition of ‘employer’ in Coal LSL’s legislation refers only to a national system employer as defined in section 14 of the Fair Work Act 2009.

Eligibility for the Coal LSL scheme is not based on award classification.

Eligibility is assessed on whether or not:

• an employee is employed in the black coal mining industry by an employer engaged in the black coal mining industry
• the duties carried out by the employee are conducted at or about a place where black coal is mined
• those duties are directly connected with the day to day operation of a black coal mine
• an employee is permanently employed with a mine rescue service for the purposes of the black coal mining industry
• an employee is a prescribed person who is employed in the coal mining industry.

Even though the Black Coal Award does not permit Production and Engineering employees to be employed on a casual basis, casual employees are still eligible for coverage under the Coal LSL scheme if they meet the eligibility rules.

The Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023 amends the:

• Coal Mining Industry (Long Service Leave) Administration Act 1992
• Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992.

The amendments ensure that casual employees are treated no less favourably than permanent employees for the purposes of their entitlements under the scheme.

A casual employee’s casual loading will be applied to levy payments by the employer into the Fund and the payment of the long service leave entitlement by the employer to the employee.

Updated methods will be provided for calculating the accrual of a casual employee's long service leave entitlement.

Employers pay a levy based on a percentage of an eligible employee's eligible wages, into the scheme to allow employees in the black coal mining industry to accrue and carry their long service leave entitlement with them between employers. The payroll levy is payable monthly and does not come out of employees' wages.

The amendments:

• clarify previous confusion by employers and employees about the meaning of ‘eligible wages’ within the scheme, specifically whether that includes casual loading.
• clarify that ‘eligible wages’ includes casual loading to address this confusion and ensure casuals are treated fairly under the scheme.
• ensure a casual employee’s casual loading will be applied to the levy and to the payment of their long service leave entitlement.

The calculation methods for the accrual, payment and reporting of a casual employee’s long service leave entitlements have been updated:

• The amendments change the method of accrual of a casual employee’s ‘working hours’ to the total of hours worked per week, averaged over the weeks in a quarter. This ensures a fairer calculation of casual employees’ working hours where they may vary week-to-week (sometimes exceeding 35 hours).
• The amendments also expand the meaning of ‘qualifying service’ to deem that certain weeks, where a casual employee does not work due to specific rostering arrangements, are periods of qualifying service.

These changes will take effect on 1 January 2024.

If you require further information, please call 1300 852 625 from Monday to Friday between 8.30am and 5.00pm (AEST), or email us.