Carina Garland (Chisholm, Australian Labor Party) Share this | Hansard source

Our communities expect governments to do everything in their power to back the basic rights of workers across all industries so everyone can seize the opportunities we have in this country to build a great life. The proposed legislation, the Coal Mining Industry (Long Service Leave) Legislation Amendment Bill 2025, is about the simple principle that workers should receive in full the entitlements they have lawfully earned.

I think all Australians would agree that, if you put in a fair day's work, you should get a fair day's pay. Long service leave is not a bonus. It's not a gift from employers. It is a right that workers accrue through years of dedication, effort and contribution. These are basic entitlements that workers should have. For generations in Australia, long service leave has recognised the loyalty and commitment workers give to their industries and the contributions that they make every single day. In industries where workers move between employers, portable schemes ensure that workers do not lose their entitlements simply because the nature of the work requires mobility. The coal long service leave scheme reflects that principle.

Workers across the black-coal mining industry, including FIFO workers in my electorate of Chisholm, whether they be directly employed at mines, undertaking maintenance, performing safety roles or providing technical services, play an absolutely fundamental role in their industry. Workers undertake physically demanding and highly skilled work, and they deserve certainty that the entitlements they earn will be there when they need them. Unfortunately, what we have seen over many years, is a situation where some workers have not been able to access those entitlements. Disputes over coverage have meant some employers have argued that they were not part of the scheme. As a result, workers who went to work every day, playing a key role in this major export industry, and should have been accruing long service leave, have been left without recognition of their service and their hard work.

When workers miss out on entitlements they have earned, confidence in the system overall is undermined. Workers should never have to fight simply to receive benefits that the law already says they are entitled to. That is fundamentally unfair. So our government, the Albanese Labor government, is fixing that through this bill. I do appreciate the bipartisan approach from the opposition here in supporting the passage of this bill. It's good to see them support us in backing our workers and ensuring that workers' efforts are recognised through this bill.

This bill incentivises employer compliance with the coal long service leave scheme, with a view to connecting workers to their full long service leave entitlements. Employers will provide the necessary data for the coal long service leave scheme to create or update service records for workers coming into the scheme to facilitate accrual of their entitlements. Where records are missing, reasonable assumptions will be allowed in order to connect more workers with their long service leave. This is designed to ensure workers are not denied their entitlements because historical records are no longer complete.

Two recent rulings of the full Federal Court of Australia on these matters have clarified the scope of the scheme. So many workers in the black-coal mining industry are now able to access their entitlements under this scheme, and, in some cases, employers may face liabilities dating back to 2010, potentially involving millions of dollars in unpaid long service leave levies. Our government is acting decisively through this bill to address those legacy issues.

What this bill does is establish a practical, time limited pathway for employers to resolve those historical levy debts. This pathway means that employers will be allowed to pay their levy in a financially sustainable manner while connecting employees with their entitlements that they've earned. To ensure fairness, employers who have already begun repaying their debts in good faith will also be able to opt in to this pathway. The bill enables employers to create payment arrangements for outstanding levy debts, to be paid in instalments over six years. This gives employers time and certainty to plan while ensuring employees are paid what they're owed. After an employer has paid 80 per cent of the total amount owed, the remaining 20 per cent will be waived.

This here represents a balanced approach designed to encourage employer participation, protect the viability of the scheme and assist employers with substantial levy liabilities. Increased employer participation ultimately benefits employees, who will gain access to their entitlements sooner. Importantly—very importantly—the 20 per cent debt waiver does not affect worker entitlements and eligible workers will still receive their full entitlements. I think it's necessary to emphasise that point. Employers will be required to specify the employees and periods covered under the payment arrangements, maintaining the principle that payments should be directly connected to individual workers' entitlements.

The bill also includes flexibility and support to ensure eligible employees do not miss out on their lawful long service leave entitlement. Industry is supportive of this bill, and in response to stakeholder feedback timeframes may be adjusted so employers can undertake thorough checks and identify all of their eligible employees. The coal long service leave scheme will also work with employers throughout the process to assist them in establishing their payment arrangements. Because these issues are historical in nature, we know that employer records may be incomplete, and so, to prevent that from disadvantaging workers, the bill adopts a fair and practical approach to establishing arrangements and the calculation of employer entitlements. This includes permitting certain simplified calculations and allowing reasonable assumptions to be made where necessary. Such measures will ensure incomplete records do not prevent employees from receiving their historical entitlements.

Some employers acting in good faith have already paid long service leave entitlements directly to employees when their employment ended, and, to ensure that those employers are not required to pay twice, the bill allows eligible payments to be offset against their debt in certain circumstances. In addition to supporting the repayment of historical debts, the bill will strengthen the scheme's compliance mechanisms by updating penalty arrangements. The bill links the additional levy rate to the Reserve Bank of Australia's cash rate plus two per cent, ensuring the additional levy acts as an effective deterrent to late payments by employers. This is a fair outcome for both employers and employees.

For employees, the bill provides certainty and recognition after many had previously been excluded from the scheme. Workers who may have missed out in the past will have their service recognised and be connected with their lawful entitlements. For employers, it offers a clear and fair process to resolve debts that in some cases extend back 15 years. The 20 per cent debt waiver and the option to pay in instalments will help employers to meet their obligations. These reforms have been developed in consultation with industry representatives, unions and the Coal Mining Industry (Long Service Leave Funding) Corporation. As previously mentioned, stakeholders have expressed support for these changes as necessary and proportionate to maintain confidence in the scheme.

This bill provides a practical and balanced response to complex legacy issues. It reflects the government's commitment to helping employers resolve their debts while ensuring, importantly, that employees are connected with their lawful entitlements.

Long service leave reflects the simple idea that loyalty, dedication and years of service should be recognised. This bill ensures that recognition is not lost because of technical disputes, incomplete records or historical uncertainty. It restores the connection between workers and the entitlements that they have earned, and that, all Australians would agree, is a commonsense approach. On that note, I commend the bill to the House.

See this speech in context