This information is for businesses in the Black Coal Mining Industry about changes from 1 January 2024. 

On 30 June 2023, the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023 (the ‘Amendment Act’) received Royal Assent.

The purpose of the Amendment Act is to ensure , within the Black Coal Mining Industry, casual employees are treated no less favourably than permanent employees in regard to the accrual of, and access to entitlements under the Coal Mining Industry (Long Service Leave Funding) Scheme (the ‘Scheme’).

The Amendment Act has amended both the Coal Mining Industry (Long Service Leave) Administration Act 1992, and the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992. The amendments give effect to Recommendation 4 of the KPMG’s report “Enhancing certainty and fairness: Independent Review of the Coal Mining Industry (Long Service Leave) Funding Scheme”.

What does this mean for employers?

From 1 January 2024, employers are required to factor in a casual employee’s casual loading when paying long service leave. The change specifically requires the loading be applied to payment of the long service leave entitlement.

The changes include, but are not limited to:

• Requiring employers to pay a levy, being a percentage of an eligible employees’ eligible wages into the Scheme, allowing employees in the black coal mining industry to accrue and carry their long service leave entitlement with them between employers.
• Clarifying the meaning of eligible wages and the inclusion of casual loading;
• The inclusion of a casual loading (as specified in a modern award or Enterprise Agreement) when making payments into the levy
• Providing that where a casual loading is not specified in a modern award or Enterprise Agreement, the eligible wages are equal to the ordinary pay rate including incentive-based payments and bonuses.
• Expand of the definition of qualifying service to confirm certain weeks where a casual does not work due to rostering arrangements are included as qualifying service.

Calculation methods have been updated for the:

• Accrual;
• Payment; and
• Reporting of a casual employee’s long service leave entitlements.

More information can be obtained from Australian Government Coal LSL.