Legislation Changes - Stood Down and Workers Compensation

The amendment provides that days of service will accrue toward a worker’s long service leave entitlement during periods when the worker is ‘stood down’ or ‘on workers compensation’.
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This change addresses a previous anomaly in the legislation where employers were required to make contributions at the worker’s ordinary rate of pay during these periods, but workers were unable to accrue days of service toward their entitlement.

The amendment ensures consistency between employer obligations and worker entitlements.

Stood Down

A day of service will accrue if a worker is stood down, provided the worker is employed by an employer and would usually have worked in that employment on the day. This applies in the following circumstances:

  • The worker is stood down under the Fair Work Act 2009 (Cth).
  • The worker is stood down under an applicable industrial instrument.
  • The worker is subject to a JobKeeper enabling stand down direction authorised by the Fair Work Act 2009 (Cth)

In addition, the workermust meet one of the following employment conditions:

  • Be employed on a full-time or part-time basis, or
  • Be employed on a casual basis and has worked in that employment on a regular and systematic basis during the 12-month period immediately preceding the stand down.

A day of service does not accrue for a casual worker who has been terminated and is no longer employed, rather than being formally stood down under the relevant provisions.

The amendment relating to workers being stood down will apply retrospectively from 1 April 2020, ensuring that workers stood down from that date onward are eligible to have days of service recorded toward their long service leave entitlement.

This commencement date aligns with the introduction of the Commonwealth JobKeeper legislation, providing consistency with the period during which widespread stand downs occurred due to the COVID-19 pandemic.

Workers Compensation

A day of service will accrue for a worker ‘on workers compensation’, provided the following conditions are met:

  • The worker is employed by an employer and would usually have worked in that employment on the day, and
  • The worker is entitled to receive ‘income compensation’ under the Workers Compensation and Injury Management Act 2023 (WA) for a period that includes the day.

This amendment will apply retrospectively, ensuring that:

  • Any previously recorded days of service while a worker was on workers compensation are validated; and
  • Any eligible days not previously recorded during such periods may now be retrospectively recognised.

This change corrects a historical inconsistency in the legislation, aligning service accrual with employer contribution obligations and ensuring fair treatment of affected workers.

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