CoINVEST for the construction industry
The construction industry is one of the only industries that has a portable long service scheme, which enables workers to take long service leave after a period of service in the industry, rather than with a single employer.
If you are an employer in the construction industry in Victoria, chances are you are required to be making regular CoINVEST contributions on behalf of your employees.
What is CoINVEST?
CoINVEST is the entity that administers the Portable Long Service Leave Scheme (‘the Scheme’) for the Victorian construction industry. CoINVEST pays, from the Construction Industry Long Service Leave Fund (‘the Fund’), long service leave for workers in the building and construction industry after a period of seven years’ service.
For more information about what trades are covered by the Scheme, visit the CoINVEST website at http://www.coinvest.com.au/employers/trades-covered-by-the-scheme.
What does it mean for employers?
All employers in the construction industry must comply with the following:
- Register with CoINVEST – All employers in the construction industry must be registered with CoINVEST if they:
- Employ workers under a contract of employment;
- Are a principal contractor who engages other employers or working subcontractors by contract (not a contract of employment); or
- Are a working subcontractor who employs a worker.
In order to register, employers simply provide their business details to CoINVEST. It is also important to note that the personal details of every worker who is employed for five or more days in a month, must be provided to CoINVEST. For more information about registration, visit the CoINVEST website at http://www.coinvest.com.au/employers/employer-obligations.
- Submit their Workers’ Days and Wages information by the due date. The CoINVEST website lists all due dates: http://www.coinvest.com.au/employers/workers-days-wages-form. We recommend saving these dates someone accessible to ensure that a due date is never missed or forgotten.
- Pay the contribution costs when required – Employers are required to make contributions into the Fund at a rate of 2.7% of the total gross wage reported on the Form.
What happens if employers do not comply?
Unfortunately, we sometimes see construction companies not complying with these requirements, leaving themselves exposed to significant risk and consequences. CoINVEST has the power to pursue any entity which fails to comply with its obligations under the law, and does so regularly. CoINVEST maintains the right to collect any outstanding debt for unpaid contribution costs and if required, take legal action.
As an employer, it is crucial that you understand and comply with the Scheme and its requirements to avoid costly, time consuming and damaging legal action.
How we can help
Sinclair + May specialises in Building and Construction Law, regularly working with construction companies to ensure they are meeting their regulatory requirements and demonstrating legal compliance in all areas. Should you feel that you need further guidance and advice in relation to CoINVEST or if you are concerned that your business is lacking compliance in other areas, please contact us on 9111 5660 for a free 15 minute chat.Go back