How CoINVEST Works
CoINVEST administers the Portable Long Service Leave Scheme for the construction industry in Victoria, Australia. All members of the construction industry, including employers, workers, working subcontractors, working directors, and apprentices are required to be registered with CoINVEST.
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See our Q & A Guide for answers to some of our most common queries.
Why have portable Long Service Leave?
CoINVEST provides portable Long Service leave to workers in the construction industry in Victoria. Without portable Long Service Leave, construction industry workers would have to work for the same employer for at least seven years – with no more than 3 months break – to earn long service leave.
It is clear that many workers are disadvantaged if they work in an industry based on separate projects, and frequently move from employer to employer. The construction industry is a typical example of this way of working. It was for this reason that a portable LSL scheme for construction workers was set up in Victoria in 1976.
97 per cent of workers in our scheme have had more than one employer over their qualifying period.
If not for CoINVEST, these workers would not have been entitled to long service leave.
How Portable Long Service Leave works
CoINVEST keeps a record of how many days of eligible service a worker accrues in Victoria – this record of service is centralised with us so that we can keep track of your accrued service throughout all of your employers. Once you have built up seven or more years of eligible service, you will be able to claim Long Service Leave from CoINVEST at any point thereafter.
CoINVEST is a compulsory part of the construction industry in Victoria. As such, all employers who perform covered work are required to record with CoINVEST how many days each worker has performed – this is done quarterly and builds up your record of service. The employer then pays a contribution fee into the Long Service Leave Fund so that we can ensure CoINVEST is sufficiently funded to be able to pay out claims to all eligible workers when they make their claim for Long Service Leave.
The Long Service Leave Act
CoINVEST Ltd is a public company which administers the Portable Long Service Leave Scheme for the construction industry in Victoria. The Long Service Leave scheme was created by an Act of Parliament. The Long Service Leave scheme administers the Construction Industry Long Service Leave Act, 1997 (amended 2004).
Download a copy of the act:
CoINVEST is the Trustee of the Long Service Leave Act, and as such CoINVEST Rules work in accordance with the Act and must be adhered to by all members.
Download a copy of the rules:
Who pays for portable long service leave?
Employers contribute a designated percentage to the Long Service Leave Fund every three months – this is an on-cost to employers and not deducted from workers’ wages. The contribution rate is currently based on 2.7% of the total gross wage of all of their workers – this is to keep the costs uniform and relative between the smaller and larger employers and to make sure that everyone is paying their fair share to fund the Long Service Leave scheme.
The costs are NOT itemised per employee, and there is no dollar amount building up against a worker’s name – the rate of pay for a worker’s Long Service Leave claim is based on their current normal weekly rate of pay at the time of claiming.
In this way, CoINVEST is funded by the industry and pays out Long Service Leave directly to the worker so that the employer doesn’t have to!
A worker may move from one employer to another
CoINVEST is portable Long Service Leave – this means it does not matter how many times workers change employers, as long as they remain in the construction industry performing covered work. Any period of employment where five or more days of covered work are performed is counted towards long service leave entitlement.
Workers are allowed a longer break between employment periods
Workers can leave covered work for up to four years any number of times without losing their service credits. However for any absences in excess of four years, the previous service will not be classed as continuous with anything accrued thereafter.
Workers only need 7 years of active service to gain a minimum entitlement to long service leave under the CoINVEST scheme.
Workers only need seven years of service in the industry to take long service leave. Once you’ve got seven years of accrued service, you can claim your Long Service Leave entitlement at any time. However, if you never accrue seven years of service, you will never be eligible to claim Long Service Leave. CoINVEST also has a death benefit for the estate of registered workers, provided the worker accrued at least 55 days of recognised service within four years of passing away.
The scheme covers working subcontractors with optional contributions.
There are a number of factors that determine whether a worker is an employee or an independent contractor (subcontractor). If you are unsure as to whether you are classed as a Worker (employee) or a Working Subcontractor, click here. If you are unsure as to whether you are a Working Subcontractor or Working Director, click here.
If you are a Working Subcontractor, you are required to register with CoINVEST. However you do not need to contribute for your own service in the industry if you do not wish. For more information on Working Subcontractor responsibilities, and how to make optional contributions towards your own Long Service Leave, click here.