Independent Review of the Construction Industry Portable Paid Long Service Leave Act 1985

Have your say - Consultation on Recommendations

In 2023, KPMG was engaged by the Minister for Industrial Relations (the Minister) to undertake an independent review of the Act (the Review). The purpose of the Review was to assess whether the Act continues to meet the needs of the contemporary construction industry and its workers.

A first round of consultations took place in June 2023 resulting in a comprehensive report being prepared which was released on 18 June 2024 (Media Statement) and can be viewed via the Independent Review Report.

The Review made 14 findings and recommendations for legislative reform covering core themes of coverage and eligibility under the Act, treatment of benefits and entitlements, as well as compliance, regulatory and administrative matters. Of these, KPMG recommended that further consultation occur with respect to six specific findings to ensure the final policy positions were best crafted to address the needs of the WA construction sector.  These findings are:

Scheme Coverage

• Clarify the capture of specific cohorts of construction workers (Review Finding 1);
• Revise current definitions used in the Act (Review Finding 2)
• The use of alternatives to prescribed industrial agreement (Review Finding 3)

Treatment of Scheme Participants

• Revisions to core terms to reduce ambiguity (Review Finding 4)
• Adoption of an ‘hours worked’ approach to accruals (Review Finding 5)
• Treatment of employees with long-term service with a single employer (Review Finding 6).

A second round of consultations took place in July 2024 with findings to be published once finalised.  

Background to Act Review

The Act was introduced in the mid 1980's to allow construction workers to carry long service leave benefits from employer to employer.

KPMG undertook the Review in 2023 to ensure portable long service leave arrangements continue to benefit construction workers and employers in WA.

The Review is a comprehensive look at the operation of the legislation that governs portable long service leave for construction workers in WA. The Review found the Act has been historically effective in providing benefits for the construction workforce, however, developments in WA’s industrial relations environment means the Act requires amendment to reflect the modern construction workforce.

The Review addresses the terms of reference established by the Government and makes 14 major findings and recommendations for targeted legislative reform covering core themes of coverage and eligibility under the Act, treatment of benefits and entitlements, as well as compliance, regulatory and administrative matters.

The Review does not recommend structural reform to fundamentally alter the architecture of the existing legislative framework, however, does recommend some legislative amendments to ensure the Act remains fit-for-purpose.

Additionally, the Review recommends that some proposed reform measures be further tested and validated with stakeholders, to settle outstanding policy positions prior to legislative reform being progressed.  Further stakeholder consultation will be undertaken as detailed below.