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Published Friday 27th March 2026
Recent Victorian Supreme Court decisions have clarified how the LeavePlus portable long service leave scheme applies.
The key outcome is that coverage is determined by the type of work performed by employees, not the employer’s primary industry classification.
For some businesses operating outside traditional construction, this may change whether LeavePlus obligations apply.
What is LeavePlus?
LeavePlus administers Victoria’s portable long service leave scheme for the construction industry.
Under the scheme:
- Eligible workers accrue long service leave across multiple employers within the industry
- Employers make contributions based on eligible wages
- LeavePlus centrally manages long service leave entitlements
The scheme is designed for workforces where employees move between employers performing similar types of work.
What the court decisions clarified
The Supreme Court considered whether certain employers were required to contribute to the scheme.
The court confirmed:
- The relevant test focuses on the nature of the work performed by employees
- Employer industry classification is not determinative
- Activities connected to buildings or infrastructure may fall within the scheme, depending on the facts
This shifts the assessment from “what industry the business is in” to “what work employees are actually doing.”
Work activities that may require review
The following activities may warrant review where performed in Victoria:
- Building-related installation work
- Electrical work connected to building systems
- Maintenance or repair of buildings or infrastructure
- Safety, compliance, or inspection services linked to building systems
This list is not exhaustive. Whether the scheme applies depends on how the work aligns with the legislative definition of construction work.
Businesses that may be affected
Organisations operating in the following areas may wish to reassess their position:
- Facilities management
- Property maintenance
- Electrical installation and servicing
- Infrastructure maintenance
- Building compliance and safety services
Some businesses in these sectors have historically treated themselves as outside the scheme. The recent rulings indicate that this assumption may not always hold.
Why this matters
If LeavePlus applies, employers may be required to:
- Register with LeavePlus
- Lodge periodic returns
- Make contributions for eligible employees
These obligations affect:
- Payroll configuration
- Compliance processes
- Ongoing reporting requirements
If coverage has been incorrectly excluded, this may also require review of prior periods, depending on the facts and legal position.
Practical steps
If your business operates in Victoria and employs staff performing building-related or infrastructure-related work, consider:
- Reviewing the actual duties performed by employees
- Comparing those duties to the legislative definition of construction work
- Confirming whether payroll and contribution settings align with any obligations
A role-by-role assessment is typically required, as outcomes depend on the specific activities performed.
Getting clarity
The impact of these rulings depends on your workforce structure and the nature of the work performed.
Where there is uncertainty, a structured review can help:
-
- Map employee roles against legislative definitions
- Confirm payroll treatment and contribution settings
- Identify any areas requiring further legal interpretation
If you would like to assess whether LeavePlus may apply to your business, Factor1 can assist with a structured review of your workforce and payroll settings.
This can be coordinated with legal advice where required to ensure the position reflects the current interpretation of Victorian legislation.
Please note: This article provides general information about recent Victorian court decisions and the LeavePlus scheme. It does not take into account your specific circumstances. Outcomes depend on the nature of the work performed, workforce structure, and applicable legal interpretation. Professional advice should be obtained before acting on this information.