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CONSTRUCTION INDUSTRY LONG SERVICE LEAVE ACT 1987 - SECT 37A

CONSTRUCTION INDUSTRY LONG SERVICE LEAVE ACT 1987 - SECT 37A

37A—Self-employed contractors and working directors

        (1)         This section applies to—

            (a)         a self-employed contractor in the construction industry; and

            (b)         a person who is employed under a contract of service in the construction industry by a body corporate of which he or she is a director.

        (1a)         A person to whom this section applies may, on application to the Board in a form approved by the Board, be registered by the Board under this section.

        (2)         A registered person is eligible to participate in an investment scheme established by the Board for the purposes of this section.

        (3)         If, in the case of a self-employed contractor—

            (a)         the contractor had previously been a construction worker; and

            (b)         he or she was not entitled to long service leave or a payment for pro rata long service leave when he or she ceased work as a construction worker; and

            (c)         he or she commenced work as a self-employed contractor in the construction industry within the prescribed period after cessation of his or her employment as a construction worker; and

            (d)         the application for registration under this section was made within six months after commencing work as a self-employed contractor in the construction industry (or within such longer period as the Board may, in its absolute discretion, allow),

any effective service entitlement is preserved on registration.

        (3a)         If—

            (a)         a person who applies for registration under subsection (1a) was—

                  (i)         a director to whom this section applies at the commencement of the Construction Industry Long Service Leave (Miscellaneous) Amendment Act 2000 ; or

                  (ii)         a construction worker immediately before becoming a director to whom this section applies; and

            (b)         the application for registration was made within six months after the commencement of that Act or the date on which the person became a director (as the case requires),

any effective service entitlement in respect of that person immediately before the commencement of that Act or the time at which he or she became a director is preserved on registration.

        (3b)         If—

            (a)         a person was not entitled to long service leave or a payment for pro rata long service leave when he or she ceased work as a construction worker; and

            (b)         within the prescribed period after ceasing work as a construction worker he or she becomes a director to whom this section applies; and

            (c)         he or she applies for registration under this section within six months after becoming a director (or within such longer period as the Board may, in its absolute discretion, allow),

any effective service entitlement is preserved on registration.

        (4)         The following provisions apply to the investment scheme established by the Board for the purposes of this section:

            (a)         the Board will, for the purposes of the scheme, before the commencement of each financial year—

                  (i)         set a contribution rate; and

                  (ii)         set an interest rate,

for the financial year; and

            (b)         a registered contractor or the employer of a director to whom this section applies may then, in respect of each (or any) period prescribed by the regulations, pay to the Board an amount equal to the relevant contribution rate (and a payment may be made by a contractor or employer in advance or, with the approval of the Board, in arrears); and

            (c)         the registered person will then, in accordance with a scheme prescribed by the regulations (but subject to this section), be credited by the Board with—

                  (i)         the prescribed number of days of effective service entitlements; and

                  (ii)         the amount of the payment; and

                  (iii)         interest in accordance with the rate set under paragraph (a)(ii).

        (5)         A payment under subsection (4)(b) must be accompanied by a return in a form approved by the Board containing information as may be prescribed or required by the Board.

        (6)         A registered person who attains an effective service entitlement of 2 600 days (including any effective service entitlement preserved under subsection (3)) is entitled to an amount calculated as follows:

1987.77.un04.jpg

where—

"A" is the amount payable

"OWP" is the registered person's ordinary weekly pay applicable under this Act (applying any presumption prescribed by the regulations)

"D" is the effective service entitlement preserved under subsection (3), (3a) or (3b) (or, if no such entitlement is preserved, zero)

"CI" is the total of the registered person's entitlement credited under subsection (4)(c)(ii) and (iii).

        (7)         If, on application to the Board under this subsection in a form approved by the Board, the Board is satisfied that—

            (a)         —

                  (i)         a registered person has attained an effective service entitlement of 1 820 days (including any effective service entitlement preserved under subsection (3), (3a) or (3b)); or

                  (ii)         a registered person has attained an effective service entitlement of less than 1 820 days and has previously had an effective service entitlement of 2 600 days or more; and

            (b)         the registered person has—

                  (i)         died; or

                  (ii)         ceased to work in the construction industry because of physical or mental disability that will prevent him or her from working in the construction industry in the future, or because of some other significant pressing necessity; or

                  (iii)         retired from his or her work and does not intend to work in the future,

the Board must pay to the registered person (or his or her personal representative) an amount calculated in the same manner as under subsection (6).

        (8)         If—

            (a)         on application to the Board under this subsection in a form approved by the Board, the Board is satisfied that a registered person has ceased work in the construction industry; and

            (b)         the registered person does not have an entitlement under subsection (6) or (7),

the Board must pay to the registered person an amount calculated as follows:

1987.77.un05.jpg

where—

"A" is the amount payable

"OWP" is the registered person's ordinary weekly pay applicable under this Act (applying any presumption prescribed by the regulations)

"D" is any effective service entitlement preserved under subsection (3), (3a) or (3b), subject to the qualification that if the aggregate of the registered person's effective service entitlement preserved under subsection (3), (3a) or (3b) and the registered person's effective service entitlement credited under subsection (4)(c)(i) does not equal or exceed 1 820 days, then D will be taken to be zero

"C" is the total of the registered person's entitlement credited under subsection (4)(c)(ii) (without interest).

        (9)         If the Board rejects an application under this section, the Board must give the applicant written notice of its decision (setting out a brief statement of the Board's reasons for making its decision).

        (10)         If a registered person

            (a)         ceases to be a self-employed contractor in the construction industry or a director to whom this section applies; and

            (b)         does not have an entitlement under subsection (6) or (7); and

            (c)         has not received and will not be receiving a payment from the Board under subsection (8); and

            (d)         has become (or has become again) a person to whose employment this Act applies (see section 5) within the prescribed period after ceasing to be a self-employed contractor or a director to whom this section applies (as the case requires),

the effective service entitlement accrued under this section together with the effective service entitlement (if any) preserved under subsection (3), (3a) or (3b) will be credited to the person for the purposes of Part 3.

        (11)         In this section—

"director" of a body corporate includes—

            (a)         a person occupying or acting in the position of director or member of the governing body of the body corporate, by whatever name called and whether or not validly appointed to occupy or duly authorised to act in the position; and

            (b)         any person in accordance with whose directions or instructions the director or members of the governing body of the body corporate are accustomed to act;

"director to whom this section applies" means a person referred to in subsection (1)(b);

"registered person" means a person registered by the Board under subsection (1a).