Victoria’s portable long service leave scheme is poised to impact businesses beyond traditional construction sectors after two Supreme Court decisions clarified the scope of “construction work” under the scheme.
The rulings in Detector Inspector Pty Ltd v CoInvest Ltd and EnergyAustralia v CoInvest Ltd confirm that employers must contribute to the LeavePlus scheme for workers performing construction-related tasks, regardless of their primary industry.
Key Rulings
- Detector Inspector Case: Mandatory safety checks and maintenance of residential systems (smoke alarms, electrical/gas appliances) were deemed construction work.
- EnergyAustralia Case: Maintenance and repair of power generation infrastructure also qualified, despite EnergyAustralia’s core operations in energy retailing.
The decisions validate LeavePlus’ interpretation of the scheme, which extends to any business where construction work forms part of its activities.
Craig Bell, CEO of LeavePlus, emphasised that industries like energy, telecommunications, and home maintenance must now reassess compliance: “If you employ workers performing construction work, you’re covered by the scheme.”
LeavePlus plans targeted audits in sectors previously excluded, urging non-compliant employers to rectify obligations.
The regulator estimates millions in unpaid entitlements and liabilities, with thousands of Victorian employers yet to meet requirements.
Jenny Acton, Chair of LeavePlus, highlighted the rulings’ role in creating a “more equitable and stable framework” for long service leave.
The decisions underscore the need for businesses to review activities and align with the scheme to avoid penalties.
Victoria’s portable long service leave scheme allows workers in industries like construction to accrue entitlements across employers.
Recent cases follow high-profile underpayment scandals, including Coles’s $1.5 million backpay in 2024.
