Long Service Benefits Portability Bill 2018 Explanatory Memoranda

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Long Service Benefits Portability Bill 2018

Long Service Benefits Portability Bill 2018 Introduction Print EXPLANATORY MEMORANDUM General On 12 November 2016, the Government announced that it would consider options for providing the portability of long service benefits for workers in the contract cleaning, security and community services sectors. Workers in these sectors rarely qualify for long service entitlements under traditional long service schemes, due to the contract and project nature of the industries in which they work. The key object of this Bill is to establish a scheme whereby service within the 3 covered industries is portable, meaning that a worker can work for multiple employers and still have their service recognised for the purposes of scheme. Clause Notes Part 1--Preliminary Clause 1 sets out the purpose of the Bill, which is to provide for the portability of long service leave benefits in certain industries. These industries are contract cleaning, security and community services. Clause 2 provides that the Act comes into operation on a day to be proclaimed. If a provision of the Act is not proclaimed, the default commencement date is 1 April 2019. Clause 3 defines various words and expressions used in the Bill, including--  Authority, which means the Portable Long Service Benefits Authority established under the Act; 581456 1 BILL LA INTRODUCTION 27/3/2018

 corresponding law, which means a law of another State or Territory that provides for the portability of long service benefits in one or more of the covered industry. Currently, Queensland, New South Wales and the Australian Capital Territory have portability schemes for the contract cleaning industry, the Australian Capital Territory and Queensland provide portability schemes for the security industry, and the Australian Capital Territory also has portability for the community services sector;  covered industry, which means the community services sector, the contract cleaning industry, and the security industry. Clause 4 defines what is meant by the term work. Subclause (1) defines work in a covered industry to mean either community service work, cleaning work, or security work. Subclause (2) provides that work includes work performed outside Victoria but only in certain circumstances. Clause 5 defines the meaning of industrial action, in similar terms to section 524 of the Fair Work Act 2009 (Cth), which sets out situations where an employer may stand down a worker without pay during a period in which the worker cannot usefully be employed. Part 2--Long service benefits Clause 6 provides that a worker in a covered industry is entitled to benefits in accordance with the relevant industry schedule if they perform work for a registered employer, and they are a registered worker. Clause 7 prohibits the contracting out of long service benefits. Subclause (1) provides that a contract of employment that purports to change or exclude any provision of this Act is of no effect, regardless of when that agreement was made. This includes any employment agreement whether entered into prior to the commencement or after employment commences. This could include any deed of agreement or settlement purporting to allow for an amount in lieu of a long service benefit that is less than the full amount owed to the employee or their representative. 2

Subclause (2) provides a similar prohibition as subclause (1), with respect to contract workers. Subclause (3) states that the section does not affect any provision of a contract or agreement, whether that contract or agreement was entered into before or after the Act came into force, to the extent of any inconsistency with the Act. This is provided that, in the opinion of the Industrial Division of the Magistrates' Court, the long service leave entitlements provided for in that contract or agreement are more favourable than those provided by the Act. Part 3--Registration Division 1--Registers Clause 8 provides that the Authority must keep up-to-date registers for each of the covered industries. There is to be one register for employers and one register for workers, with each register to have an active part and an inactive part. Even where a worker leaves a covered industry, or an employer ceases to be an employer for a covered industry, they will remain on the inactive register. This will allow the Authority to access information relating to claims for benefits, as well as provide information requested by a reciprocal authority, should the need arise. Clause 9 provides that the registrar must enter certain information on the employers register, including the employer's name and principal place of business, (which must be a physical address), trading name, ABN and ACN, the day they became registered, whether the employer is active or inactive, and any other information the registrar considers relevant. Clause 10 provides that the registrar must enter certain information on the workers register, including the worker's name, address and date of birth, for an employee, the name and place of work of each employer for whom the employee performs work, the date they the worker became registered, the number of days service they have been credited with, their ordinary pay, any long service benefits taken by the worker, whether the worker is active or inactive, and any other information the registrar considers relevant. For a contract worker, the register must also record the worker's ABN (if any). 3

Clause 11 Subclause (1) provides that any person may inspect the employers register, and also obtain a copy of an entry on payment of any prescribed fee. Subclause (2) provides that a worker or a person acting on their behalf may inspect an entry in the register that pertains to that worker, and also obtain a copy of the entry on payment of any prescribed fee. Division 2--Registration of employers Clause 12 sets out the requirement for an employer to register. Subclause (1) states that an employer for a covered industry must apply for registration no later than the end of the required period, or at a later time if approved by the registrar. Subclause (2) defines what is meant by required period. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. As this is a 'continuing offence' the penalty applies for each day during which the offence continues. Subclause (5) provides that if a person is guilty of an offence against section 12(1) (failure to register) the court, in addition to imposing a penalty, may order the person to apply to be registered, and pay the Authority the amount that would have been payable as a levy had the person complied with the requirements of the Act. Clause 13 describes the process for dealing with an application for registration by an employer. On application the registrar must register an employer for a covered industry, unless the registrar is satisfied that the employer is not an employer for a covered industry. Clause 14 provides that not later than 7 days after deciding to register an employer for a covered industry, or deciding to refuse registration, the register must notify the employer. If a decision is made to refuse registration, the applicant must be given written reasons for the decision. 4

Clause 15 provides that a registered active employer must give the registrar written notice of any change to the information provided by the employer referred to in section 9(a), (b), (c) or (d), within 14 days after the change happens. A registered active employer must also advise the registrar if they cease to be an employer for a covered industry. A maximum penalty of 6 penalty units (in the case of an individual) or 30 penalty units (in the case of a body corporate) applies to this provision. Clause 16 Subclause (1) provides that the registrar may move a person from the active part of the employers register to the inactive part of the register if satisfied that the person is not an employer for the covered industry, and their application for registration should have been refused, or the person applies to the registrar to be moved to the inactive part of the register on the basis that they no longer engage workers to perform work in the covered industry. Subclause (3) provides that the person stops being a registered active employer on the day they are moved from the register, but they remain liable to pay any unpaid levy. Division 3--Registration of workers Clause 17 provides that a person may apply to the registrar to be registered as a worker for a covered industry. Clause 18 sets out the requirements for an employer to apply for registration of an employee if the employee has not applied to be registered in accordance with section 17. Subclause (3) provides that an employer must apply for the registration of the employee on the workers register when the employer next submits a quarterly return. Clause 19 describes the process for dealing with an application for registration as a worker. On receiving an application from a person seeking to be registered as a worker for a covered industry, or an application by an employer for the registration of a worker, the registrar must register the person, if the registrar is satisfied that the person is a worker for a covered industry. Clause 20 provides that not later than 7 days after deciding to register a worker for a covered industry, or deciding to refuse registration, the register must notify the applicant and, for an application by 5

the employer, the relevant employee. If a decision is made to refuse registration, the applicant must be given written reasons for the decision. Clause 21 provides that the registrar may register a person as a worker, if the registrar becomes aware that the person was or is a worker for the industry, and the registrar is satisfied that the person should be registered as a worker. This anticipates a situation where an employer has failed to apply for registration of the worker. Clause 22 Subclause (1) provides that the registrar may move a person from the active part of the workers register to the inactive part of the register if the person has not been credited with at least one day of service for 4 years, unless the registrar is satisfied that the worker is still working in the covered industry. Therefore, a person must be credited with at least one day of service in a 4-year period, in order to remain on the active register. Subclause (2) provides that the registrar must give written notice to the person of the intent to move them to the inactive part of the register, and allow them 28 days to provide evidence that they are still working in the industry. Subclause (3) describes the effect of being moved to the inactive part of the register. A person moved to the inactive part of the register is not entitled to apply for long service leave, or be paid in lieu of long service leave, or be paid long service benefits, for any service credited before the day they ceased to be a registered active worker. Subclause (4) says that where a worker is entitled to receive benefits as a result of permanently leaving the industry, or as a result of the worker's death, subclause (3)(b) will not apply. In this situation the worker (or their representative, in the case of death) will be entitled to a payment of their benefit, if they are a worker covered by Schedule 1, or a payment in lieu of long service leave, if they are a worker covered by Schedule 2, or Schedule 3. Clause 23 provides that the registrar must restore a person to the active part of the workers registrar if satisfied that the person should have been credited a period of service under this Act, or under a corresponding law, during the 4-year period ending on the day the person was moved to the inactive part of the register. The registrar may also move a person back to the active part of 6

the register if the person provides evidence that they are again employed or engaged in the industry. In these circumstances, the person must be treated as if they had never been moved the inactive part of the register. However, where a person leaves but subsequently re-joins the industry, their service prior to leaving the industry will not be recognised. Division 4--Recognition of service Clause 24 provides that this Division does not apply to the community services sector. For the purpose of this Division, the term relevant day in respect to the contract cleaning industry or the security industry means the day on which this Act comes into operation. In respect to any other case, the term relevant day means the day on which the relevant industry became a covered industry. Whilst the Act defines covered industry to mean the contract cleaning, security and community services industries, the Act may be amended at some future date to include other industries as covered industries. Clause 25 sets out the rights of a worker to have up to 12 months' service in a covered industry prior to this Act coming into operation recognised for the purposes of calculating their long service benefit. Subclause (1) provides that an active worker in a covered industry may apply to the registrar to have one day's service credited for each day or part day of service in the covered industry, in the 12 months before the relevant day (as defined in section 24). The registrar must be satisfied that the person was employed or engaged in the industry at the time. Where a worker does have prior service recognised there is no impact on the levy paid by their employer as there is no provision for the levy to be applied to periods before the Act comes into operation. Subclause (2) provides that an application under subsection (1) must be made within 12 months of the relevant day. Clause 26 sets out the rights of an employee to have their service in a covered industry after the commencement of this Act recognised in circumstances where they have not been registered. Subclause (1) provides this provision applies only to an employee who performs work in a covered industry, and allows their service after the relevant day to be recognised no earlier 7

than 4 years before they became a registered active employee for the industry. Subclause (2) states that the registrar may credit the employee for one day or part day's service for each day or part day worked, if the employer has provided the Authority with a quarterly return and paid the levy. Subclause (3) provides that notwithstanding subsection (2), the registrar may recognise the employee's service in the absence of a quarterly return or the payment of the levy. An example of the application of this provision is where an employer neglects to register an employee despite the requirements of this Act to do so. This provision ensures that the employee in these circumstances will not be disadvantaged. Clause 27 sets out the rights of a contract worker to have their service in a covered industry after the commencement of this Act recognised in circumstances where they have not been registered as an active worker. Subclause (2) allows the registrar to credit the worker with one day of service for each day or part day worked, where the Authority has been provided with a quarterly return or is otherwise satisfied that the worker worked in the industry on the day in question, and payment of the levy has been received. Part 4--Quarterly returns, levies and record keeping Division 1--Quarterly returns Clause 28 sets out the requirement of an employer to provide a quarterly return. Subclause (1) requires that an active registered employer must submit a quarterly return to the Authority. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. As this is a 'continuing offence' the penalty applies for each day during which the offence continues. Subclause (2) sets out the information that an employer is required to provide in their quarterly return. This includes the name of each of the employer's workers who performed work during the quarter, the total ordinary pay for each worker, and the 8

number of days or part days worked for that quarter for each worker. Subclause (3) allows the Authority to accept a late return, and charge a fee for the late return. Clause 29 sets out the arrangements for a contract worker to provide a quarterly return. Subclause (1) provides that an active registered contract worker may submit a quarterly return to the Authority. Unlike an employer who must provide a quarterly return to the Authority, this is not a mandatory requirement of a contract worker. Subclause (2) sets out the information that a contract worker is required to provide in their quarterly return. This includes the number of days or part days worked for that quarter by the contract worker and their total ordinary pay for the quarter. Subclause (3) allows the Authority to accept a late return, and charge a fee for the late return. Division 2--Levies Clause 30 imposes the long service benefits levy and explains how it is payable. Subclause (1) states that the levy is imposed on the ordinary pay of each employee and contract worker for a covered industry. Subclause (2) states that the levy is payable by the employee's employer. Subclause (3) states that in the case of a contract worker, the levy is payable by the contract worker. The term contract worker in respect of the contract cleaning and security industries is defined at clause 5 of Schedule 2 and clause 5 of Schedule 3 to mean an individual who performs work in the industry for another person for fee or reward on the individual's own account. A person is not a contract worker simply because that is how they are described in their contract of employment with their employer. 9

Clause 31 describes how the levy is determined for employers and how it may be changed. Subclause (1) states that the levy is determined by the Governing Board. The Governing Board oversees the operations of the Portable Long Service Benefits Authority, responsible for managing the long service leave benefits scheme. Subclause (2) states that the levy must not exceed 3% of the employee's ordinary pay, and it may vary between covered industries, and also within a covered industry. For example, the Governing Board may set a general levy rate, as well as a reduced rate for employers who provide their quarterly return on time. Subclause (3) requires the Governing Board to notify registered active employers of a change in the levy rate for their covered industry. Clause 32 describes the levy as it applies to a contract worker. Subclause (1) states that the levy for a contract worker is determined from time to time by the Governing Board and is a percentage of the contract worker's ordinary pay. Subclause (2) states that the levy must not exceed 3% and it may vary between covered industries, and also within a covered industry. Clause 33 sets out the obligation of an employer or contract worker to pay the levy. Subclause (1) states the levy must be paid at the same time as the employer submits their quarterly return. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Subclause (2) states that a contract worker must pay the levy at the same time as they submit their quarterly return. As the making of a return by a contract worker is not mandatory, as they are making the return and paying the levy on their own account, no offence attaches to a contract worker who makes a return but fails to pay the levy. However, interest is payable on an amount of unpaid levy (see clause 34). 10

Clause 34 Subclause (1) provides that interest is payable on an amount of unpaid levy. The rate of interest is that fixed under section 2 of the Penalty Interest Rates Act 1983, calculated from the date the amount becomes due until the date the outstanding amount is paid. Subclause (2) provides that the Authority may recover an amount of unpaid levy and any interest owning as a debt in a court of competent jurisdiction. Division 3--Record keeping Clause 35 sets out the obligations on employers to keep records. Subclause (2) states what is to be included as part of the written record. The record must record the worker's name, date of birth, the nature of the work the worker performed, the worker's ordinary pay for each quarter, the number of days or part days worked, the date on which the worker began service with the employer, any long service leave benefits provided to the worker, and, if appropriate, the date on which the worker ceased service with the employer. Penalties apply for failure to comply with record keeping obligations (see clause 67). Part 5--Administration Division 1--Portable Long Service Benefits Authority Clause 36 provides for the establishment of the Portable Long Service Benefits Authority. Subclause (1) provides for the establishment of the Authority. The Authority will administer the portable long service benefits scheme as it applies to all 3 covered industries. The Authority is a public authority. Subclause (2) provides that the Authority is a body corporate with perpetual succession, may sue and be sued, may acquire and dispose of property, and otherwise do anything that a body corporate at law may do. 11

Clause 37 describes the functions of the Authority. The clause sets out these functions, which include administering the long service benefits schemes in the covered industries, maintaining the registers, making payments, resolving disputes as to the timing of the taking of leave, and consulting with other industries that may be affected by decisions made by the Authority. Division 2--Governing Board Clause 38 sets up the Portable Long Service Benefits Governing Board. Subclause (2) provides that the Governing Board consists of not more than 9 members, appointed by the Minister. At least one of those persons is appointed to represent an organisation representing employers for a covered industry. At least one person is to be appointed to represent an organisation representing employees for a covered industry. In addition, there will be at least 2 members who do not represent either an employer or employee organisation for a covered industry, but have, in the Minister's opinion, the necessary skills or experience to undertake these roles. One of these persons is to be the chairperson of the Board, and another is the deputy chairperson. The registrar is also a member of the Governing Board, but will not have a vote in proceedings. Subclause (3) requires the Minister when appointing members of the Governing Board to ensure, as far as practicable, that there is equal representation of organisations representing employers and employees. The Minister should also ensure that collectively, the Governing Board has skills or experience in the fields of law, finance or accounting, and public administration or governance. A person appointed to the Governing Board could possess experience, skills or knowledge in more than one field. Clause 39 sets out the functions of the Governing Board. Subclause (1) provides that the Governing Board is responsible for the governance, strategic planning, and risk management of the Authority, and in doing so may perform any of the functions of the Authority. Subclause (2) deems that all acts and things done in the name of, or on behalf of, the Authority by, or with the authority of the Governing Board, are taken to have been done by the Authority. 12

Clause 40 sets out the process for appointing the chairperson and deputy chairperson, and their respective responsibilities. Subclause (1) provides that the Minister must appoint one member of the Governing Board to be the chairperson, and one to be the deputy chairperson. Subclause (2) provides that the chairperson and deputy chairperson cease to hold their respective offices on ceasing to be a member of the Governing Board. Subclause (3) provides that the deputy chairperson shall act as chairperson in certain circumstances. Subclause (4) provides that whilst acting as chairperson, the deputy chairperson may exercise the powers of the chairperson. Clause 41 provides for the conditions of office for Governing Board members other than the registrar. Subclause (1) provides that they are appointed for a term of up to 3 years, and are eligible for reappointment. Members are subject to the Public Administration Act 2004, other than Part 3 of that Act. This means that members will be subject to the public sector values set out in section 7 of the Public Administration Act 2004. Subclause (2) provides that other terms and conditions of a member's appointment to office may be set out in their instrument of appointment so long as those terms and conditions are not inconsistent with those in the Act. Clause 42 describes what happens if there are vacancies, or resignations, as well as the process for removing members from office. Subclause (1) provides for the circumstances where the office of a member becomes vacant, which are where the member becomes an insolvent under administration or is convicted or found guilty of an indictable offence or an offence that, if committed in Victoria, would be an indictable offence or is absent from 2 consecutive meetings of the Governing Board without the approval of the Governing Board; or is removed from office; or retires, or resigns. Subclause (2) enables a member of the Governing Board to resign by delivering a signed letter of resignation to the Minister. 13

Subclause (3) provides that the Minister may remove a member from office based on certain grounds. Specifically, if the member becomes incapable of performing their duties, or is negligent in the performance of those duties, or engages in improper conduct, or with respect to a member appointed to represent the interests of an organisation of employers or employees, ceases to represent that organisation. Clause 43 provides that a decision or an act of the Governing Board will not be invalid only by reason of any vacancy in the office of a member or any defect or irregularity in or in connection with the appointment of a member. Clause 44 provides for the conduct of meetings of the Governing Board, including when and where meetings must be held, quorum requirements, voting rights and meeting minutes. Subclause (1) provides that the Governing Board determines the times and places of its meetings. Subclause (2) provides that a quorum for a meeting is two-thirds of the appointed members holding office at the time, of whom one member must be the chairperson or deputy chairperson. As the registrar is not an appointed member, as defined in clause 3 of the Bill, the registrar is not to be included for the purposes of determining whether a quorum has been formed. Subclause (3) provides that the registrar does not have a vote. Subclause (4) provides that questions at board meetings are to be determined by a two-thirds majority of appointed members. As the registrar is not an appointed member, as defined in clause 3 of the Bill, the registrar is not to be included for the purposes of determining whether a two-thirds majority has been obtained. Subclause (5) provides that the person presiding has a deliberative vote only. Subclause (6) enables members to participate in meetings without being physically present in the same room. For instance, the Governing Board could conduct a meeting by teleconference. Subclause (7) requires the presiding member to ensure that accurate meetings of the board are kept. 14

Subclause (8) allows the Governing Board to otherwise determine its own procedure. Clause 45 enables the Governing Board to make resolutions without holding a board meeting. Subclause (1) enables the Governing Board to determine to make proposed resolutions without having to meet and to determine a method by which the members can form agreement in regards to the proposed resolutions. Subclause (2) provides that a resolution is taken to have been made if a two-thirds majority of the appointed members of the Governing Board entitled to vote on the resolution indicate agreement with the resolution, that agreement is indicated in accordance with a method that was determined by the Governing Board, and all the members were informed of the proposed resolution, or reasonable efforts were made to inform the members of the proposed resolution. As the registrar Subclause (3) clarifies that a member of the Governing Board is not entitled to vote on a proposed resolution in the method agreed upon in this clause if the member would have been precluded from voting on that resolution considered at a meeting of the Governing Board. For example, the requirements regarding pecuniary interests (clause 46) apply in the same way to resolutions permitted under this provision. Subclause (4) requires the Governing Board to keep a record of resolutions made in accordance with this clause. Clause 46 provides for how any pecuniary interest of a member in a matter being considered or about to be considered by the Governing Board must be dealt with and creates offences for non-compliance. Subclause (1) requires a member who has a pecuniary interest in a matter being or to be considered by the Governing Board to disclose that interest at a meeting of the Governing Board as soon as practicable after the relevant facts have come to the member's knowledge. A breach of subclause (1) is an offence with a maximum penalty of 60 penalty units. Subclause (2) provides that where the chairperson has an interest in a matter being considered by the Governing Board, they must disclose the nature of the interest to the Minister as soon as 15

practicable after it has come to their attention. A breach of subclause (2) is an offence with a maximum penalty of 60 penalty units. Subclause (3) provides that the presiding member of a meeting of the Governing Board at which a disclosure is made under this clause must record the disclosure in the minutes of the meeting. Subclause (4) provides that a member who has made a disclosure of a pecuniary interest must not be present during any deliberation with respect to, or vote on, the matter. A breach of subclause (4) will be an offence with a maximum penalty of 60 penalty units. However, this subclause will not apply if the Governing Board resolves under subclause (5) that the member may be present during deliberations of, or vote on, the matter. Part 5 of the Public Administration Act 2004, which also sets out requirements for disclosure of interests, also applies to members of the Governing Board. Clause 47 provides for personal immunity for members of the Governing Board, including the registrar. Subclause (1) provides that an appointed member is not personally liable for anything done in good faith in the performance of a function under this Act. Subclause (2) provides that the registrar is not personally liable for anything done in good faith in the performance of a function under this Act, whether in their capacity as registrar, or board member. Subclause (3) attaches to the Authority the liability for an act or omission that would, if not for the operation of this provision, attach to a Governing Board member. Division 3--Registrar, staffing and other matters Clause 48 Subclause (1) provides for the appointment by the chairperson of a registrar, who will be employed under Part 3 of the Public Administration Act 2004. Subclause (2) allows the Secretary of the Department of Economic Development, Jobs, Transport and Resources to appoint a person under Part 3 of the Public Administration Act 2004 to act as registrar until the chairperson makes the first appointment under subclause (1). 16

Subclause (3) sets out the responsibilities of the registrar, which is to be responsible for the day-to-day management of the Authority, subject to any directions given by the Governing Board. Clause 49 Subclause (1) provides for the chairperson to employ persons under Part 3 of the Public Administration Act 2004 to be employees of the Authority. Section 8 of the Public Administration Act 2004, which sets out public sector employment principles, will apply to the chairperson in relation to the employment of staff of the Authority. Subclause (2) allows the Authority to enter into arrangements with other public sector bodies for the secondment of staff to the Authority. Clause 50 Subclause (1) provides for the Governing Board, by way of instrument, to delegate to the registrar any of its powers, except this power of delegation. Subclause (2) provides for the registrar, by way of instrument, to delegate to employees of the Authority any of power, except this power of delegation. Clause 51 provides it is an offence for a person who is or has been a member of the Governing Board, an authorised officer or an employee of the Authority to improperly use any information acquired in the course of that person's duties to obtain or indirectly obtain any pecuniary interest or other advantage for themselves or another person. The offence carries a maximum penalty of 60 penalty units. Clause 52 sets out the rights of the Authority to disclose information in certain circumstances. Subclause (1) provides that the Authority may disclose information relating to an employer's compliance with this Act to a Victorian government entity or Commonwealth government entity, for the purpose of that entity performing its own functions. An example would be the Authority providing information to the Fair Work Ombudsman, a Commonwealth government entity, in relation to the failure of an employer to maintain employee records, which is a requirement of the Fair Work Act 2009 (Cth). 17

Subclause (2) provides that the Authority may disclose information regarding a registered worker's service to a reciprocal authority. As this Act allows the Authority to enter into an arrangement with a portable long service benefits authority in another State or Territory to allow for the recognition of a worker's service across jurisdictions, this provision allows the Authority to provide another authority with information to facilitate the provision of benefits to workers. Division 4--Finance Clause 53 Subclause (1) provides that the money of the Authority comprises the levy paid to the Authority by employers and contract workers, the proceeds from investments by the Authority, and any other money received by the Authority. Subclause (2) sets out what that money may be used for, which include the payment of long service benefits, the payment of staff and Governing Board members, administrative expenses, as well as the investment of that money by the Authority. Clause 54 requires the Authority to keep a separate fund for each of the covered industries. Subclause (2) allows the Authority to establish a common fund for the purposes of paying expenses that relate to more than one covered industry, and also to invest money on behalf of more than one covered industry. Clause 55 requires the Governing Board to appoint a suitably qualified actuary, and to provide reports to the Minister. Subclause (2) provides that the actuary must investigate the state of the Authority's monies and funds at least every 3 years, as well as at the request of the Board. Subclause (3) provides that the actuary must report the outcomes of its investigations to the Governing Board, and include advice as to whether the levies payable under this Act should stay the same, increase, or be reduced. 18

Part 6--Dispute resolution and enforcement Division 1--VCAT reviews Clause 56 provides for the review by the Victorian Civil and Administrative Tribunal (VCAT) of certain decisions of the registrar or the Authority or the Governing Board. Subclause (1) allows an interested person to seek a review by VCAT of--  a decision by the registrar to refuse to register a person on either the employer or worker register;  a decision by the registrar to move a person from the active part of the employer or worker register to the inactive part of the register;  a decision by the registrar to refuse to a person back to the active part of a register from the inactive part;  a decision of the registrar in relation to a worker's service credit;  a refusal by the Authority to pay a benefit claimed by a worker;  a refusal of the Authority to pay a person on behalf of a reciprocal authority; or  a refusal by the Authority to reimburse an employer in the contract cleaning or security industries, where that employer makes a payment to a worker in accordance with another law or fair work instrument. Subclause (2) allows an employer or contract worker for a covered industry to apply to VCAT for review of a decision of the Governing Board in relation to the levy applicable to that employer or contract worker. Clause 57 provides that an application for review under section 56 must be made within 28 days after the day the decision by the registrar, Authority, or Governing Board is made, or the day the person is informed of the decision if the person seeks a statement of reasons under the Victorian Civil and Administrative Tribunal Act 1998, whichever is the later date. 19

Division 2--Industrial Division of the Magistrates' Court Clause 58 states that proceedings for offences are to be brought in the Industrial Division of the Magistrates' Court. Subclause (1) states that if a person is charged with an offence against the Act, the charge must be heard, and all penalties recovered, before the Industrial Division of the Magistrates' Court. Subclause (2) confers exclusive jurisdiction on the Court. Subclause (3) provides that nothing in the section deprives a person of any right of appeal to the County Court against a sentence imposed by the Industrial Division of the Magistrates' Court or to the Supreme Court on a question of law, under the Criminal Procedure Act 2009. Clause 59 provides the Court with the power to order a payment to a worker. Subclause (1) states that if the Court finds an employer guilty of an offence under the Act, and that the employer has failed to pay the levy or part of the levy with respect to that worker, the Court may order the employer to pay the worker an amount equivalent to what the Authority would have paid the worker if the employer had paid the levy. Any payment made by Authority to the worker is to be deducted from this payment. The Authority is able to make payments to a worker even if their employer or former employer has not paid the levy. Subclause (2) provides a similar arrangement with respect to a person other than an employer. This may apply to situations where the business that employed the worker is no longer extant, and therefore a former worker will have an avenue to recover unpaid long service leave entitlements from a former director of the business. Subclause (3) provides that an order under this section is in addition to any penalty imposed by the Court. Subclause (4) provides that an order under this section may be enforced as if it were an order made by the Court in a civil proceeding. 20

Subclause (5) provides that interest is payable at the rate fixed under the Penalty Interest Rates Act 1983. The interest is calculated from the date on which the Court makes the order for payment until the date on which the amount is paid or recovered. Subclause (6) provides that if after all reasonable attempts to recover an amount ordered to be paid by the Court have been tried, the order may be enforced as if it were a penalty imposed by the Court. Subclause (7) provides that for the purposes of this section, employer includes a former employer and worker includes a former worker. Division 3--Authorised officers Clause 60 describes the appointment of authorised officers and provides that they are to exercise functions or powers under the Act in accordance with the directions of the Authority. Clause 61 relates to identity cards issued to authorised officers. Clause 62 sets out the power of authorised officers to require information or documents. Subclause (1) states that in order to determine whether the Act or regulations have been complied with, an authorised officer may request in writing that a person provide any information that the authorised officer requires, or produce any document in the possession or control of that person. The request may specify a reasonable time in which the request must be complied with. Subclause (2) states that the notice must warn the person that a failure to comply with the notice, without reasonable excuse, is an offence, and if the notice is directed to an individual, it must inform them that the person may refuse to produce the document or information (other than a record or document that the Act requires to be kept) if it would tend to incriminate them. Subclause (3) empowers an authorised officer to inspect, or make copies or take extracts from a document. Clause 63 Subclause (1) provides that an authorised officer may retain a document for a period necessary to monitor compliance with the Act and regulations. 21

Subclause (2) provides that if a document is being retained, the authorised officer must allow the owner of the document to inspect it, make copies, or take extracts from it. Clause 64 deals with confidentiality of information. Subclause (1) states that an authorised officer must not give any other person information they have acquired, except to the extent required to monitor compliance. A maximum penalty of 60 penalty units applies to this provision. Subclause (2) states that subclause (1) does not apply to the giving of information--  to a court or tribunal in the course of a legal proceeding; or  pursuant to a court or tribunal order; or  to the extent reasonably required to enable an investigation or enforcement of a law of any State, Territory or the Commonwealth; or  with the written authority of the registrar; or  with the written authority of the person to whom the information relates. Division 4--Offences Clause 65 prohibits an employer taking adverse action against a worker in certain circumstances. Adverse action means generally treating a worker less favourably than they otherwise would be treated, including less favourably than other workers. Subclause (1) states that an employer must not take adverse action against a worker because the worker is entitled to long service leave or any other entitlement under the Act. A maximum penalty of 12 penalty units (in the case of an individual) or 60 penalty units (in the case of a body corporate) applies to this provision. As this is a 'continuing offence' the penalty applies for each day during which the offence continues. Subclause (2) states that an employer must not take adverse action against a worker because the worker seeks to exercise their entitlement to long service benefits under this Act. 22

A maximum penalty of 12 penalty units (in the case of an individual) or 60 penalty units (in the case of a body corporate) applies to this provision. As this is a 'continuing offence' the penalty applies for each day during which the offence continues. Subclause (3) states that an employer must not take adverse action against a worker because the worker makes an inquiry with respect to their entitlements to long service benefits under this Act. Subclause (4) states that an employer must not take adverse action against a worker because the worker exercises their right to apply to the Authority for a determination as to the timing of the taking of leave. A maximum penalty of 12 penalty units (in the case of an individual) or 60 penalty units (in the case of a body corporate) applies to this provision. As this is a 'continuing offence' the penalty applies for each day during which the offence continues. Subclause (5) states that in a proceeding for an alleged contravention of subclauses (1), (2), (3) or (4), the employer bears the onus of proving that the adverse action was not actuated by any reason referred to in those subclauses. Subclause (6) states that an employer takes adverse action against a worker if they--  dismiss the worker; or  injure the worker in their employment or engagement; or  alter the worker's position to their prejudice;  discriminate between the worker and other workers; or  knowingly or recklessly make a false representation about the worker's long service benefits. Clause 66 provides that an employer for a covered industry must comply with a determination of the Authority in respect to the taking of leave. A maximum penalty of 12 penalty units (in the case of an individual) or 60 penalty units (in the case of a body corporate) applies to this provision. As this is a 'continuing offence' the penalty applies for each day during which the offence continues. 23

Clause 67 sets out offences relating to record keeping. Subclause (1) states that an employer must keep a long service leave record during the worker's period of continuous employment. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Subclause (2) states that an employer must keep a long service record for at least 7 years after the worker stops working for the employer. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Subclause (3) states that a person must not make a false or misleading statement in relation to a long service leave record, or make a material omission, without reasonable excuse. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Subclause (4) states that an employer must not refuse a request to provide a copy of the long service leave record, made by a worker, or their representative. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Subclause (5) states that despite anything contrary in this or any other Act, a proceeding for an offence against this section may be commenced by filing a charge-sheet within 6 years of the alleged offence having been committed. Subclause (6) states that in this clause worker includes a former employee and employer includes a former employer. Clause 68 sets out what happens if a person fails to provide documents to the Authority or provides false or misleading documents. Subclause (1) states that a person must not fail to comply with a notice to produce documents or provide information under clause 62, without reasonable excuse. 24

A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Subclause (2) states that a person must not provide an authorised officer with a document that the person knows to be false or misleading, without identifying the aspect that is false or misleading, and if practicable providing correct information. A maximum penalty of 24 penalty units (in the case of an individual) or 120 penalty units (in the case of a body corporate) applies to this provision. Clause 69 provides protection against self-incrimination. Subclause (1) states that a person may refuse or fail to give information, or produce a document or otherwise comply with a requirement of this Act, if doing so would tend to incriminate them. Subclause (2) states that notwithstanding subclause (1) it is not a reasonable excuse for an individual to refuse to produce a document that the individual is required by the Act to keep. Clause 70 describes who can prosecute under the Act. Subclause (1) states that a prosecution for an offence against this Act can only be brought by the Authority, or a person authorised by the Authority to bring a prosecution. Subclause (2) states that such an authorisation must be in writing, and may be given generally or only in relation to a particular case or cases. The person who gave the authorisation may withdraw it at any time. Subclause (3) states that if an authorisation to prosecute is withdrawn, it does not affect a proceeding that has already commenced, unless the notice of withdrawal specifically states so. Subclause (4) states that in a prosecution for an offence against this Act, the Industrial Division of the Magistrates' Court must presume that the prosecution has been authorised, unless there is evidence to the contrary. 25

Subclause (5) provides that a prosecution may only be conducted by the person authorised to bring it, or an Australian lawyer briefed by that person. Clause 71 imputes conduct of an individual to bodies corporate or other employer. Subclause (1) provides that the conduct engaged in or on behalf of a body corporate by an agent, employee or officer of the body corporate or other employer acting within their authority is considered to be also engaged in by that body corporate or other employer. Subclause (2) provides that the term officer is defined in section 9 of the Corporations Act 2001 (Cth). Clause 72 relates to the criminal liability of officers of bodies corporate. Subclause (1) provides that if a body corporate commits an offence specified in subclause (2), then an officer of the body corporate also commits that offence if--  the officer authorised or permitted the commission of that offence; or  the officer, by act or omission, was knowingly concerned in the commission of the offence. Subclause (2) sets out the offences that apply to subclause (1). These are--  clause 12(1)--application by employer for registration; and  clause 15(1) and (2)--notification by employer of change of details and notification by employer that they are no longer an employer for a covered industry; and  clause 28(1)--submitting a quarterly return; and  clause 33(1)--payment of a levy; and  clause 65(1), (2), (3) and (4)--adverse action; and  clause 66--failure to comply with the Authority's determination; and  clause 67(1), (2), (3) and (4)--record keeping and disclosure; and 26

 clause 68(1) and (2)-failing to produce documents or producing false or misleading documents. Subclause (3) states that without limiting any other defence available to an officer, the officer may rely on a defence that would be available to the body corporate if it were charged with the offence that the officer has been charged with. In doing so, the officer bears the same burden of proof as the body corporate in establishing the defence. Subclause (4) states that an officer of a body corporate may commit an offence against a provision specified in subclause (2) regardless of whether the body corporate has been prosecuted for, or found guilty of the offence. Subclause (5) defines body corporate as having the meaning given it in section 57A of the Corporations Act 2001 (Cth). Officer is defined as a person who is an officer as defined in section 9 of the Corporations Act 2001 (Cth), or a person who is concerned in or takes part in the management of a body corporate, regardless of their title. Subclause (6) states that this clause does not affect the operation of section 323 or section 324 of the Crimes Act 1958. These provisions relate to abettors, accessories and concealers of offences. Clause 73 refers to offences committed by unincorporated associations. A proceeding for an offence against this Act by an unincorporated association may be brought against any or all members of the association's governing body. Clause 74 states that in a proceeding for an offence against clause 28(1), which relates to the obligation of an employer to provide the Authority with a quarterly return, a certificate signed by or on behalf of the registrar is considered to be evidence of the matters set out in the certificate. Part 7--General Clause 75 sets out matters relating to review of the Act. Broadly speaking, this includes an obligation on the Minister to review the Act as soon as possible after the period of 3 years from the date the Act commences, and the obligation on the Minister to cause a report on the outcome of the review to be laid 27

before each House of Parliament within 6 months of the completion of the review. The review is to consider whether the policy objectives of the Act remain valid, and whether the provisions of the Act are still appropriate for securing those objectives. Clause 76 allows the Minister to enter into reciprocal arrangements with portable long service benefits authorities in other States or Territories. Similar arrangements operate in the building and construction industry, where service in one State or Territory is recognised in another State or Territory for the purposes of portable long service leave arrangements. An arrangement also exists between New South Wales and the Australian Capital Territory with respect to service in the contract cleaning industry. Subclause (1) provides that the Minister may enter into an agreement with a Minister in another jurisdiction, on the recommendation of the Governing Board. Subclause (2) provides that such an agreement may provide for matters such as the payment of long service benefits, an exchange of information, and any other matter considered appropriate in relation to long service benefits. Clause 77 allows the Authority to approve forms to be used for the purposes of the Act. For example, clause 12(3) requires an employer's application for registration to be in the approved form. Clause 78 allows the registrar to waive any fee or part of a fee payable under the Act. Clause 79 limits the jurisdiction of the Supreme Court. It is the intention of this clause is to alter or vary section 85 of the Constitution Act 1975 to the extent required to prevent the bringing of a proceeding for offences against the Act under clause 58(1) of the Bill in the Supreme Court. Clause 58(1) requires charges for offences to be heard in the Industrial Division of the Magistrates' Court. Section 85 of the Constitution Act 1975 sets out the powers and jurisdiction of the Supreme Court of Victoria. The limitation on the jurisdiction of the Supreme Court is to ensure that the Industrial Division of the Magistrates' Court serves as the primary body for determining matters under the long service leave legislation. 28

The right of any party to appeal to the Supreme Court on a question of law from a final order of the Industrial Division of the Magistrates' Court is enshrined at clause 58(3)(b) of the Bill. Clause 80 allows for the making of regulations. Broadly speaking, subclause (2) permits regulations to prescribe various matters relating to the portable long service benefits scheme. For example, subclause (2) states that the regulations may be of general or of specially limited application, and that the regulations may confer a discretionary authority, or impose a duty, on a specified person or body or class of person or body. Subclause (3) states that the regulations may provide for the Act to apply to individuals, or classes of individuals, who perform work in the community services sector for another person for fee or reward on the individual's own account. Such regulations will enable the application of the Act to be extended to contract workers in the community services sector. Part 8--Amendment of other Acts Clause 81 makes a consequential amendment to section 16(1) of the Public Administration Act 2004. This amendment has the effect of making the chairperson of the Governing Board a public service body Head. Clause 82 repeals section 3(2) of the Long Service Leave Act 2018, as that section is no longer needed due to a House amendment to the Bill for that Act. Clause 83 provides for the automatic repeal of Part 8 of the Bill on 1 November 2019. The repeal of this Part does not affect in any way the continuing operation of the amendments made by this Part (see section 15(1) of the Interpretation of Legislation Act 1984). Schedule 1--Community services sector Part 1--Community services sector This Part sets out definitions for the purposes of this Schedule. Clause 1 sets out the meaning of community services sector, in relation to Victoria and reciprocating jurisdictions. 29

Clause 2 sets out the meaning of community services work. Subclause (1) describes the types of work that are community services work. The following descriptions of work and service are examples of work that would come within paragraphs (a)-(i) of subclause (1)-- (a) Personal and support services: covering adoption services, child protection case management, family services, placement and support services, family therapy and mediation, drug and alcohol services, incest and sexual abuse counselling, domestic violence counselling, sexual assault support, family violence support, crisis counselling, financial counselling, victim support, problem gambling, social services referral and liaison work, housing and homelessness support, culturally and linguistically diverse (CALD) services, early childhood intervention services, children's resource work, youth services, social work, welfare services, carer support, falls prevention, mental health management support, suicide prevention. (b) Youth justice support services: covering adolescent mediation and support, Koori services, housing pathway services, corrections pathway services. (c) Financial and material assistance: covering emergency financial relief, financial advice, information and referral, special equipment and materials, household goods, clothing and furniture, food provision and concessions, housing establishment funding. (d) Disability services: covering services specifically for the support of persons with a disability, including providing information, planning, capacity building, individual support, targeted services and residential accommodation support, respite care, training and employment support for persons with disabilities and disability enterprises. (e) Community and home care services: covering recreation and leisure, living skills development, provision of community transport, domestic assistance, home maintenance, food service, respite care and personal care. 30

(f) Community housing and housing support: covering housing assistance, housing information and referral, social housing advocacy and support, case managed housing support services, transitional housing support workers, tenancy management. (g) Accommodation and support: covering group homes and shared accommodation, supported residential services, alternative family placement, residential rehabilitation, transitional accommodation, respite care, crisis accommodation including accommodation for people with disabilities, children and young people and people with significant housing needs. (h) Community legal services: covering consumer and legal information, advice and referral, housing, tenancy information advice and referral, individual advice and court advocacy, parole board advice, counselling, practical support for victims of crime, legal education, law reform and policy development, mediation, legal centre management. (i) Aboriginal support services: covering the aboriginal community controlled sector, capacity building, men's behaviour change programme, advocacy and liaison work. (j) Service and community development and support: covering advice and consultancy on service networks, provision of training and training resources, volunteer resource development and placement, social planning and policy work, advocacy, welfare fundraising, community development co-ordination, employment and learning co-ordination, community centre-based development and support, community education, cultural group development, neighbourhood renewal services. Health services are not included in the definition of community service work. Subclause (1)(j) provides that other services, or a class of service, may be prescribed to be community service work. Subclause (2) provides that regulations may prescribe an activity, or class of activity, that would otherwise come within subclauses (1)(a)-(i) to not be community service work for the purposes of this Schedule. 31

Clause 3 sets out the meaning of employer for the community services sector. Subclause (1)(a) includes within the definition of employer a non-profit entity that employs at least one individual to perform community service work or a licensed children's service under the Children's Services Act 1996 or an approved provider under the Education and Care Services National Law (Victoria). The effect of this subclause is that entities for profit that provide community services (other than those that provide services to persons with a disability) or are a licensed children's service or an approved provider are not included as employers for the purposes of this Schedule. Subclause (1)(b) provides that an entity for profit that employs at least one individual to perform community service work for persons with a disability is also included as an employer for the community services sector. Non-profit entities that perform community service work for persons with a disability are included as employers by virtue of the operation of subclause (1)(a)(i). Subclause (1)(c) includes in the definition of employer a person, or a member of a class of persons, prescribed under the regulations to be an employer. Subclause (2) sets out a number of exclusions from the definition of employer, including government bodies and any person exempted under the regulations from being an employer. An example of an entity that is excluded from the definition of employer is a school council constituted by a Ministerial Order under the Education and Training Reform Act 2006, which is also an approved provider under the Education and Care Services National Law (Victoria). As the school council is appointed under an Act of Victoria, it is excluded from the definition of employer by operation of subclause (2)(c). Subclause (3) defines the terms entity for profit and non-profit entity for the purposes of subclause (1). Clause 4 sets out the meaning of employee. Subclause (1) provides that an employee is an individual employed by an employer and includes casual employees. Independent contract workers are not included as workers for the purposes of this Schedule (see the definition of worker in 32

clause 3 of the Bill). However, regulations may be made in the future to provide that the Act applies in whole or in part to contract workers in the community services sector. Subclause (2) sets out a number of exclusions from the definition of employee. Subclause (2)(a) clarifies that where an employer is a licensed children's service under the Children's Services Act 1996 or an approved provider under the Education and Care Services National Law (Victoria), only persons who primarily work with children are included as employees. Subclause (2)(b) provides that if the employer is a community health centre, then only persons employed by the community health centre to carry out community service work are included as employees for the purposes of this Schedule. This clarifies that persons employed by the centre who provide health services are not included as employees for the purposes of this Schedule. Subclause (2)(c) provides that employees of service providers that provide services to persons with a disability who primarily provide health services are to be excluded from the scheme. This applies whether the disability services provider is not-for- profit or for-profit. Subclause (2)(d) provides that an individual covered by the Aged Care Award 2010 or other prescribed awards are not included as employees for the purposes of this Schedule. Subclause (2)(d)(i) means that aged care workers are not included as employees for the purposes of this Schedule. Certain persons who would otherwise be an employee but fall within a class prescribed under the regulations will also be excluded from operation of this Schedule. Part 2--Crediting service Clause 5 describes how service in the community services sector is recognised. Subclause (1) defines recognised service for a registered active worker for the community services sector as the total number of days, or part days of service credit for all the service periods that the worker has worked, less any days for which the worker has received a long service leave benefit payment. The terms service credit and service period are defined by clauses 6 and 7 of 33

Schedule 1. An example of the accrual of recognised services is if a worker is credited with 127 days of service in their first year, then 178*5 days in their second year, and 57*5 days in their third year, 0 days in their fourth year, and 199 days in their fifth year, after 5 years they will have accrued 562 days recognised service. Subclause (2) provides that a registered active worker for the community services sector is taken to have completed a year of recognised service for each 365 days of recognised service. Clause 6 provides that, subject to Part 4 of this Schedule, a worker is to be credited with one day of service for each day in each service period of the worker after the worker is registered as a community services sector worker for the purposes of this Bill. A worker is also entitled to be credited with service in some circumstances where they are not working in the community services sector. For example, a worker is entitled to be credited with service if they are on a period of leave as described in clause 14 of this Schedule. A worker would also be entitled to be credited with service if they are a casual worker and the employer has agreed that the worker may be absent and the worker has a reasonable expectation of being re-employed by the employer (see clause 14(3) of the Schedule). Subclause (2) states that a worker must not be recorded in the register as having performed service for more than 365 days in a financial year. Clause 7 defines what is meant by service period in the community services sector. Subclause (1) provides that a service period for a person who is a registered active worker in the community services sector is a continuous period that starts the day the person becomes a worker in the sector and ends the day the person stops being a worker in the sector. However, service in the community services sector prior to the commencement of the operation of this Schedule is not counted as being part of a service period. Subclause (2) provides that for the purposes of subclause (1), a person stops being an employee for an employer if they do not record any service with that employer for a quarter, as indicated in the employer's quarterly return to the Authority. In the case of an employee who works for more than one employer in the industry, the employee stops being an employee for the community services sector if none of the employers' quarterly 34

returns record service for the quarter. The fact that an employee stops being an employee for an employer does not mean that the employee's service period ends and the employee is moved to the inactive part of the register--see clause 14 of this Schedule. The employee's service period may continue despite not appearing as receiving any ordinary pay in a quarterly return of an employer if one the circumstances set out in clause 14 apply to the employee. Subclause (3) provides that a registered active worker's service period is not taken to have ended if the worker stops working due to incapacity for an injury, and the worker is entitled to compensation under the Workplace Injury Rehabilitation and Compensation Act 2013, or the worker is dismissed by an employer to ensure that the worker is not entitled to long service benefits while in the employer's employment. Subclause (4) states that this clause is subject to Part 4 of this Schedule. Part 4 deals with how absences from work, and breaks in employment, are to be treated. Part 3--Long service benefits Clause 8 sets out a worker's entitlement to a long service leave benefit. Subclause (1) states that after completing 7 years of recognised service, a worker will be entitled to a payment equivalent to 1/60th of their total period of recognised service, less any long service leave benefit paid during that period. Subclause (2) states that the benefit is to be paid on the basis of the worker's rate of ordinary pay. Subclause (3) provides that regulations may be made to prescribe the method by which the amount of the benefit is determined. Clause 9 sets out the meaning of ordinary pay. Subclause (1) states that ordinary pay is the salary or wages payable to the worker for the work performed in the community services sector. Subclause (2) states that ordinary pay includes payments made under the Workplace Injury Rehabilitation and Compensation Act 2013. 35

Subclause (3) excludes a number of payment types from ordinary pay. In particular, subclause (3)(b) states that overtime payments, shift allowances, meal, travel and clothing allowances are not included as the worker's ordinary pay for the purposes of this Schedule. Clause 10 sets out arrangements for the determination and payment of a long service benefit. Subclause (1) states that a worker may apply to the Authority for a determination of their benefit, and if the worker is entitled to a payment of long service leave benefit, for payment of that benefit. Subclause (2) states that the Authority must determine whether or not the worker has a benefit, advise the worker in writing and, where the worker has a benefit, pay that benefit within 21 days after receiving the application. Clause 11 describes how benefits are paid when a worker leaves the sector or upon the worker's death. Subclause (1) states that this clause applies where a registered active worker leaves the sector or dies before being paid all long service benefits which have accrued for that worker. Subclause (2) states that on application by the worker or his/her personal representative, the Authority must pay the worker or his/her representative all long service benefits to which the worker is entitled. The method of calculation of this entitlement is to be specified in regulations. Clause 12 describes the arrangements for when the Authority makes a payment on behalf of a reciprocal authority. Subclause (1) specifies that this clause applies when a registered active worker in the community services sector has an entitlement to long service benefits under a corresponding law as well as an entitlement under this Act. Subclause (2) states that a worker may apply for payment of the long service leave benefit worked out in accordance with the corresponding law. Subclause (3) states that the Authority must pay the reciprocal benefit to the worker determined in the way stated in the corresponding law, if authorised by the reciprocal authority 36

to do so. For example, if a registered active worker in the community services sector in Victoria had also accrued an entitlement to a long service leave benefit under another law in another State or Territory, the worker could apply to the Authority for payment of the benefit entitlement accrued in the other State or Territory, and the Authority must calculate the benefit in accordance with the law of the other State or Territory and pay the amount if authorised to do so by the reciprocal authority. Clause 13 sets out how a reciprocal authority is to pay a long service benefit on behalf of the Authority. Subclause (1) states that this cause applies if a reciprocal authority makes a payment to a person for a period of long service in the community services sector which included an amount that would have been payable for an entitlement to benefit under this Act. Subclause (2) states that the circumstances in which the Authority must reimburse the reciprocal authority. The Authority must be notified of the benefit and be satisfied that the payment was properly made. Subclause (3) states that in making a payment under subclause (2) to the reciprocal authority, the Authority's obligation to the person is discharged. Part 4--Ancillary provisions for working out service Clause 14 Subclause (1) states that the employment of a worker in the community services sector is taken to be continuous despite the fact that the worker's employment has been interrupted for one of the reasons set out in this clause. Subclause (2) specifies the types of leave that do not break a worker continuity of service. These are--  annual leave; or  in the case of a worker other than a casual worker, parental leave, whether paid or unpaid; or  in the case of a casual worker, paid or unpaid parental leave that is no longer than 104 weeks; or  carer's leave; or 37

 illness or injury leave; or  any other form of leave provided under the worker's employment agreement. Generally speaking, the Fair Work Act 2009 (Cth), or an instrument created under that Act, will set out a worker's leave entitlements, including annual leave, leave on account of illness, and carer's leave. Subclause (3) states that a casual worker's employment is also taken to be continuous despite the absence from work being greater than 12 weeks if certain other criteria are met. Subclause (4) states that a worker's employment is taken to be continuous if the absence from work is caused by the employer terminating or interrupting the employment with the intent of avoiding an obligation in relation to long service leave benefits. Subclause (5) provides that a worker's employment is taken to be continuous if the absence from work arises solely from the transfer of assets from one employer to another and the worker usually performs work in relation to those assets. Subclause (6) states that a worker's employment is taken to be continuous if the absence is caused by--  the termination of employment, at the initiative of either the employer or the worker, and the worker is re-employed by the employer within 12 weeks of the termination; or  a contract term expiring, if the worker is re-employed by the employer within 52 weeks of the expiration. Subclause (7) provides that a worker's employment is taken to be continuous despite the standing down of the worker because of industrial action (defined in clause 5) in certain circumstances. This is similar to the arrangements in section 524 of the Fair Work Act 2009 (Cth), which sets out situations where an employer may stand down an employee without pay during a period in which the employee cannot usefully be employed. Subclause (8) provides that a worker's employment is taken to be continuous despite the standing down of the worker because of a breakdown in machinery or equipment for which the employer cannot be reasonably held responsible, in certain circumstances. 38

Subclause (9) provides that a worker's employment is taken to be continuous despite the standing down of the worker because of a stoppage of work for any reason, for which the employer cannot be reasonably held responsible in certain circumstances. Clause 15 describes those periods of absence that are taken to be a day of service for the purposes of determining the days to be credited as days of service for a worker in the community services sector (see Part 2 of this Schedule). Clause 16 describes those periods of absence from work that are not taken to be a day of service for the purposes of determining the days to be credited as days of service of a worker in the community services sector (see Part 2 of this Schedule). Whilst these absences are not included when determining the days of service to be credited, these absences do not break the worker's continuity of employment. Part 5--General Clause 17 Subclause (1) provides that regulations will determine the obligations of the worker, the employer and the Authority under this Act where a registered active worker in the community services sector has an entitlement to long service leave or the payment of a long service leave benefit under a fair work instrument (defined in section 3). Subclause (2) sets out the principles that must be reflected in the regulations. These principles reflect the intention that a worker should not be able to "double dip" and obtain long service leave or a long service benefit under a fair work instrument and also claim a long service benefit under this Act for the same period of service. Subclause (3) clarifies that in order to give effect to the principles set out in subclause (2), the regulations may modify the operation of provisions of this Act. Clause 18 states that the Authority must provide each worker with an annual statement. Subclause (1) states that the Authority must provide each worker with an annual statement within 30 days after the end of each financial year. The statement is to set out the amount of long service leave benefit levy paid to the registrar in respect of that 39

worker during that year; and any current entitlement of the worker to long service leave benefit and any other prescribed information. Subclause (2) allows the Authority to determine how the statement is to be given. Schedule 2--Contract cleaning industry Part 1--Contract cleaning industry Clause 1 defines what is the contract cleaning industry. The industry is defined to mean, in relation to Victoria, the industry in which employers provide cleaning work to other people through the provision of a worker's services. Where an arrangement is in place with respect to a reciprocal jurisdiction (see clause 76 of the Bill), the contract cleaning industry also means the industry within the meaning of the corresponding law of that jurisdiction, notwithstanding that the definition of the contract cleaning industry may be different in that reciprocal jurisdiction. Clause 2 defines what is meant by cleaning work. Subclause (1) defines the term to mean work that has as its only or main function the cleaning, or maintaining in a clean state, premises. This does not extend to the cleaning of a vehicle. Subclause (2) provides that cleaning work includes the cleaning of a swimming pool and the surrounding grounds. Subclause (3) provides that cleaning work does not include waste removal, the maintenance of the grounds surrounding a building or house, cleaning work in relation to a house or building under construction, or gardening work. Clause 3 defines who is an employer for the contract cleaning industry. Subclause (1) provides that an employer for the contract cleaning industry is a person engaged in the industry in Victoria who employs another person to perform work in the contract cleaning industry. Subclause (2) provides that a person is also an employer for the contract cleaning industry if the worker they engage performs work in the industry for fee or reward, and there is no contract related to the performance of that work between the worker and the person for whom the work is performed. This covers a 40

situation where the worker's services are sub-contracted to another person. For example, a company enters into a contract with the owner of a building to provide cleaning services. The workers engaged by the company then perform cleaning work in relation to that building. In this situation the company will be an employer for the purposes of the Act. Subclause (3) excludes the Commonwealth, the State of Victoria, an entity that has a governing body appointed under an Act of Victoria or the Commonwealth, a statutory body or a local council from the operation of this provision. Also excluded is a person who is a member of class of persons prescribed not to be an employer for the industry. Clause 4 defines who is an employee for the contract cleaning industry. Subclause (1) provides that an employee for the contract cleaning industry is an individual employed by an employer for Victoria, whether in Victoria or elsewhere. An apprentice is also an employee as is a person learning or being taught an occupation, and a casual or seasonal employee. Subclause (2) provides that an individual is not an employee for the contract cleaning industry if they are on the register of workers pursuant to the Construction Industry Long Service Leave Act 1997. This is a portable long service benefits scheme that covers workers in the building and construction sector. Also excluded is a person who is a member of class of persons prescribed not to be an employee for the industry. Clause 5 defines who is a contract worker for the contract cleaning industry. Subclause (1) provides that a contract worker for the contract cleaning industry is an individual who performs work in the industry for another person for fee or reward, on the individual's own account. This distinguishes a contract worker from an employee, as an employee performs work on account of their employer. Subclause (2) provides that an individual is not a contract worker for the contract cleaning industry if they are on the register of workers pursuant to the Construction Industry Long Service Leave Act 1997. This is a portable long service benefits scheme that covers workers in the building and construction sector. 41

Also excluded is a person who is a member of class of persons prescribed not to be a contract worker for the industry. Subclause (3) provides despite subclause (1) or clause 4, that a director of a company whose only employees or contract workers are directors, and each of the directors participates in the management of the company or shares its profits will be taken to be a contract worker, rather than an employee. The effect of this provision is that the directors of the company do not have to be registered as employees, in accordance with Division 3 of Part 3 of the Bill, but may register themselves in accordance with the relevant provisions. Similarly, clause 32 in Division 2 of Part 4 will apply in this situation, rather than clause 31 in Division 2 of Part 4. The partners of a partnership are also taken to be contract workers. Part 2--Crediting service Clause 6 describes how service in the contract cleaning industry is recognised. Subclause (1) defines recognised service for a registered active worker for the contract cleaning industry as the total number of days, or part days of service credit for all the service periods that the worker has worked, less any days already taken as long service leave, or any payment in lieu of long service leave. For example, if a worker works 127 days in their first year, then 178*5 days in their second year, and 57*5 days in their third year, 0 days in their fourth year, and 199 days in their fifth year, after 5 years' service in the industry they will have accrued 562 days service. Clause 7 provides that, subject to Part 4 of this Schedule, a worker is to be credited with one day of service for each day in the service period, after the worker is registered as a worker in the covered industry. For example, if a worker works 127 days in their first year, then 178*5 days in their second year, and 57*5 days in their third year, 0 days in their fourth year, and 199 days in their fifth year, after 5 years' service in the industry they will have accrued 562 days service. A worker is also entitled to be credited with service in some circumstances where they are not performing cleaning work. For example, a worker is entitled to be credited with service if they are on a period of leave as described in clause 22 of this 42

Schedule. A worker would also be entitled to be credited with service if they are attending a training course related to their work in the contract cleaning industry. Clause 8 defines what is meant by service period in the contract cleaning industry. Subclause (1) provides that a service period for a person who is a registered active worker in the cleaning industry is a continuous period that starts the day the person becomes a worker for the industry and ends the day the person stops being a worker for the industry. Subclause (2) provides that for the purposes of subclause (1), a person stops being an employee for an employer if they do not record any service with that employer for a quarter, as indicated in the employer's quarterly return to the Authority. In the case of a worker who works for more than employer in the industry, the employee stops being an employee for an employer if none of the employers' quarterly returns record service for the quarter. The fact that an employee stops being an employee for an employer does not mean that the employee is moved to the inactive part of the register--see clause 22 of the Bill. Subclause (3) provides that a registered active worker's service period is not taken to have ended if the worker stops working due to incapacity for an injury, and the worker is entitled to compensation under the Workplace Injury Rehabilitation and Compensation Act 2013, or the worker is dismissed by an employer, or the employer ends the contract worker's engagement, to ensure that the worker does not take long service leave. Subclause (4) states that this clause is subject to Part 4 of this Schedule. Part 4 deals with how absences from work, and breaks in service, are to be treated. Part 3--Long service benefits Division 1--Entitlement to leave Clause 9 describes the entitlement of a worker to long service leave. On completing 7 years of recognised service, an active registered worker for the contract cleaning industry is entitled to an amount of long service leave equal to 1/60th of their total period of 43

recognised service, less any period of leave taken during that period. For example, if after 10 years' recognised service, a worker has accrued 1984 days of service, their long service leave entitlement will be 33*6 days. If, however, after reaching the minimum 7 years of service the worker had taken 10 days leave, their entitlement after 10 years will be 23*6 days leave. Clause 10 provides that any public holiday, or period of annual leave occurring during a period of long service leave is not included as part of that period of leave. A public holiday or period of annual leave will therefore be additional to any period of long service leave. Clause 11 allows a registered active worker to apply to take long service leave. Subclause (1) provides that a worker may apply to their employer for a period of leave of not less than 1 day. Subclause (2) provides that an employer must grant this request as soon as practicable after the request is received unless the employer has reasonable business grounds (as defined in clause 3 of this Bill) for refusing the request. Subclause (3) provides that if an employer refuses the worker's request to take leave, the worker may apply to the Authority for a determination. An example is where the employer acknowledges the worker's right to take long service leave, but does not accede to the leave being taken at a particular time. Subclause (4) provides that as soon as practicable after receiving an application under subclause (2), the Authority must notify the employer in writing of the application and invite them to make a written submission within 14 days. Subclause (5) requires the Authority to make a determination regarding the worker's application after taking into consideration any submissions provided by the parties. A determination by the Authority is not reviewable by VCAT. Clause 12 sets out the circumstances where a worker is entitled to a payment in lieu of leave. Subclause (1) provides that this clause applies where an active worker is entitled to long service leave, and that worker permanently leaves the industry or dies before taking all the leave to which they are entitled. A worker is not entitled to long 44

service leave until they have completed 7 years of recognised service (see clause 9 of this Schedule). Subclause (2) provides that the worker, or in the case of their death, their representative, is entitled to a payment in lieu for the long service leave to which they were entitled, as at the date they leave the industry, or the date of their death. Clause 15 of this Schedule sets out the requirements for satisfying the Authority that a worker has permanently left the industry, or intends to permanently leave. Division 2--Payments Clause 13 defines what is meant by ordinary pay. Subclause (1) provides that ordinary pay for a registered active worker in the contract cleaning industry is the salary or wages, and allowances, including shift allowances), paid or payable to the worker for work performed in the industry. Subclause (2) states that ordinary pay also includes payments under the Workplace Injury Rehabilitation and Compensation Act 2013, or any other payment as compensation for a workplace injury. Subclause (3) states that ordinary pay does not include payments for working overtime, or reimbursement of expenses, or the use of materials such as a vehicle provided to the worker, or travel, meal, or clothing allowances, or a payment on the termination of employment such as payment in lieu of notice, or employer superannuation contributions. Clause 14 sets out how workers are to be paid when they take long service leave. Subclause (2) provides that an employee or contract worker may apply to the Authority for payment for the period of leave. The application for payment is not made to the employee's employer. Subclause (3) provides that the Authority must pay the applicant if satisfied that the applicant is entitled to leave under the Act, and has been granted a period of leave by their employer. Subclause (4) requires the Authority to make the payment to the applicant within 21 days of receiving the application. 45

Clause 15 sets out the arrangements where a worker applies for a payment in lieu of leave. Subclause (1) provides that where a worker, or their personal representative, is entitled to payment in lieu of long service leave, they may make an application to the Authority. Payment in lieu is only available where a worker dies, or where they permanently leave the contract cleaning industry. Subclause (2) provides that where a worker seeks a payment in lieu of long service leave on the grounds that they are permanently leaving the contract cleaning industry dues to total incapacity, the application must be supported by a certificate from a registered medical practitioner. Subclause (3) provides that where a worker seeks payment in lieu of leave for reasons other than total incapacity, their application to the Authority must be supported by a statutory declaration stating that the applicant has permanently left the contract cleaning industry, and does not intend to return. If the worker did return to work in the contract cleaning industry after they had received their payment in lieu of long service leave, they would be considered to be a new worker in the industry, and their service credit for the purposes of qualifying for a benefit under the Act would be zero. Clause 16 describes how payments are calculated. The amount payable for or in lieu of long service leave for an employee or a contract worker is determined according to the arrangements set out in clauses 17 and 18. Clause 17 describes how payments are calculated for an employee. The amount payable for long service, or in lieu of long service leave, is to be based on the number of days leave granted to the employee by their employer. However, if the number of days' leave granted to the employee is greater than the number of days credit on the workers register for the contract cleaning industry, then the payment is to be based on that lesser number. For example, an employer may grant an employee 20 days long service leave, but the employee may only have 15 days credit on the long service leave register. In this situation, the Authority must only pay the employee based on those 15 days service credit. The payment for long service leave or in lieu of leave is to be based on the employee's ordinary pay as it was immediately 46

before the employee dies or left the industry, or at the time the employee commences leave. Clause 18 describes how payments are calculated for a contract worker. Subclause (1) provides that the amount payable for long service, or in lieu of long service leave, is to be based on the amounts paid by the worker to the Authority by way of the levy, and the interest earned on those amounts. Subclause (3) provides that the Governing Board must determine a rate of interest for the financial year just ended, as soon as practicable after the end of that financial dispute. The rate of interest for the purposes of subclause (1) is to be 75% of the rate of interest as determined by the Governing Board, where the contract cleaning industry funds have made a return on their investment. If, however, the invested funds do not make a return, or make a loss, the interest rate for the purposes of subclause (1) is zero. Clause 19 describes the arrangements for when the Authority makes a payment on behalf of a reciprocal authority. Subclause (1) states that this clause applies to a registered active worker for the contract cleaning industry who has a long service leave entitlement under the Act as well as under a corresponding law. An example is where a worker has accrued service under the Act, and also under a portable long service leave scheme for the contract cleaning industry in another jurisdiction, which has been recognised as a reciprocal authority. Subclause (2) provides that the worker may apply to the Authority for a payment of the leave entitlement in accordance with that corresponding law. Clause 20 describes the arrangements for when a reciprocal authority makes a payment on behalf of an Authority. Subclause (1) states that this clause applies if, under a corresponding law, a reciprocal authority pays a person an amount that would otherwise have been payable under the Act for work performed in the contract cleaning industry. Subclause (2) provides that on notification, the Authority must reimburse the reciprocal authority, if satisfied that the payment was properly made. 47

Subclause (3) provides that where the Authority reimburses a reciprocal authority, its obligation to make a payment to the person is discharged. An example is where a worker has 10 years' service in Victoria in the contract cleaning industry, and then works a further 4 years in a reciprocal jurisdiction. The worker may make a claim for payment of their entitlement for the entire 14-year period from the reciprocal authority, notwithstanding that only 4 of those years were worked in that jurisdiction. The Authority, on request, may then reimburse that reciprocal authority for the payment of the 10 years' service with respect to Victoria that was made to the worker. The worker's service credit balance will then be zero, and they will have no further entitlement to long service benefits for the period of service already worked. Part 4--Ancillary provisions for working out service Clause 21 Subclause (1) states that a worker's employment or engagement is taken to be continuous despite an absence from work caused by the employee taking various specified types of leave. Subclause (2) states the absences from work that do not break a worker's continuity of service. These are--  annual leave; or  long service leave; or  in the case of a worker other than a casual or seasonal employee, parental leave, whether paid or unpaid; or  in the case of a casual or seasonal worker, paid or unpaid parental leave that is no longer than 104 weeks; or  carer's leave; or  illness or injury leave; or  any other form of leave provided under the worker's employment agreement. Generally speaking, the Fair Work Act 2009 (Cth), or an instrument created under that Act, will set out a worker's leave entitlements, including annual leave, leave on account of illness, and carer's leave. 48

Subclause (3) states that a casual or seasonal worker's employment or engagement is also taken to be continuous despite the absence from work being greater than 12 weeks if certain other criteria are met. Subclause (4) states that a worker's employment or engagement is taken to be continuous if the absence from work is caused by the employer terminating or interrupting the employment or engagement with the intent of avoiding a long service leave obligation. Subclause (5) provides that a worker's employment or engagement is taken to be continuous if the absence arises solely from the transfer of assets from one employer to another and the employee usually performs work in relation to those assets. Subclause (6) states that a worker's employment or engagement is taken to be continuous if the absence is caused by--  the termination of employment, at the initiative of either the employer or the worker and the worker is re-employed or re-engaged by the employer within 12 weeks of the termination; or  a contract term expiring, if the worker is re-employed or re-engaged by the employer within 52 weeks of the expiration; or  the worker's apprenticeship ends, if the worker is re-employed or re-engaged by the employer within 52 weeks of the completion of the apprenticeship. Subclause (7) provides that a worker's employment or engagement is taken to be continuous despite the standing down of the worker because of industrial action (defined in clause 5, in certain circumstances. This is similar to the arrangements in section 524 of the Fair Work Act 2009 (Cth) which sets out situations where an employer may stand down an employee without pay during a period in which the employee cannot usefully be employed. Subclause (8) provides that a worker's employment or engagement is taken to be continuous despite the standing down of the worker because of a breakdown in machinery or equipment for which the employer cannot be reasonably held responsible, in certain circumstances. 49

Subclause (9) provides that a worker's employment or engagement is taken to be continuous despite the standing down of the worker because of a stoppage of work for any reason, for which the employer cannot be reasonably held responsible in certain circumstances. Clause 22 subclause (1) describes those periods of absence that are taken to be a day of service for the purposes of determining the days to be credited as days of service for the contract cleaning industry (see Part 2 of this Schedule). Subclause (2) provides that if an employee enters into a contract of employment with an employer within 52 weeks of completing an apprenticeship with that employer, the period of the apprenticeship is included in the period of employment or engagement. Clause 23 describes those periods of absence from work that are not taken to be a day of service for the purposes of determining the days to be credited as days of service for the contract cleaning industry (see Part 2 of this Schedule). Whilst these absences are not included when determining the days of service to be credited, these absences do not break the worker's continuity of employment or engagement. Part 5--Benefits under other laws Clause 24 states the requirement for a worker who has a benefit under the Act, and also under another law or instrument to make an election as to which law they wish to benefit under. Subclause (1) provides that the worker must elect the law under which the long service leave benefit is taken. The subclause also sets out the laws and the instruments subject to this provision. Subclause (2) requires the worker to advise the Authority in writing the law or instrument under which they elect to take the long service leave benefit, as well as the service period or periods for which the election is made. A worker may have accrued benefits under a number of Acts or instruments, but cannot enjoy a benefit under more than one of these schemes for the same period of service. For example, a worker will accrue service under this Act, and may also at the same time accrue service under an enterprise agreement made under the Fair Work Act 2009 (Cth). The worker must elect under whether they wish 50

to take long service leave, or be paid in lieu of leave, under this Act or under the enterprise agreement. Subclause (3) provides that if the Authority receives a written nomination from a worker, the workers register as it applies to that worker must be adjusted to reflect the terms of the election. Clause 25 provides the arrangements where the worker has made an election under clause 24, and this results in the employer making a payment to the worker for long service leave. Long service leave provided through an industrial instrument such as an enterprise agreement or award, as well as long service leave provided through the Long Service Leave Act 2018, require the employer to make payments for leave, or in lieu of leave, directly to the worker. In such circumstances, the employer may apply to the Authority for reimbursement of the amount paid to the worker. If satisfied that the amount paid by the employer was properly made under the relevant law or instrument, the Authority may reimburse the employer, less any outstanding amount payable to the Authority by the employer. Schedule 3--Security industry Part 1--Security industry Clause 1 defines what is the security industry. The industry is defined to mean, in relation to Victoria, the industry in which security activities are undertaken by persons licensed to undertake those activities under the Private Security Act 2004. Where an arrangement is in place with respect to a reciprocal jurisdiction (see clause 76 of the Bill), the security industry also means the industry within the meaning of the corresponding law of that jurisdiction, notwithstanding that the definition of the security industry may be different in that reciprocal jurisdiction. Clause 2 defines what is meant by security work. Subclause (1) defines the term to mean work that is performed in the security industry, or an activity of a class prescribed to be security work. Subclause (2) sets out examples of what activities are considered to be security work. 51

Clause 3 defines who is an employer for the security industry. Subclause (1) provides that an employer for the security industry is a person engaged in the industry in Victoria who employs another person to perform work in the security industry. Subclause (2) provides that a person is also an employer for the security industry if the worker they engage performs work in the industry for fee or reward, and there is no contract related to the performance of that work between the worker and the person for whom the work is performed. This covers a situation where the worker's services are sub-contracted to another person. For example, a company enters into a contract with the owner of a building to provide security services. The workers engaged by the company then perform security work in relation to that building. In this situation the company will be an employer for the purposes of the Act. Subclause (3) excludes the Commonwealth, the State of Victoria, an entity that has a governing body appointed under an Act of Victoria or the Commonwealth, a statutory body or a local council from the operation of this provision. Also excluded is a person who is a member of class of persons prescribed not to be an employer for the industry. Clause 4 defines who is an employee for the security industry. Subclause (1) provides that an employee for the security industry is an individual employed by an employer for Victoria, whether in Victoria or elsewhere. An apprentice is also an employee as is a person learning or being taught an occupation, and a casual or seasonal employee. Subclause (2) provides that an individual is not an employee for the security industry if they are on the register of workers pursuant to the Construction Industry Long Service Leave Act 1997. This is a portable long service benefits scheme that covers workers in the building and construction sector. Also excluded is a person who is a member of class of persons prescribed not to be an employee for the industry. Clause 5 defines who is a contract worker for the security industry. Subclause (1) provides that a contract worker for the security industry is an individual who performs work in the industry for another person for fee or reward, on the individual's own account. 52

This distinguishes a contract worker from an employee, as an employee performs work on account of their employer. Subclause (2) provides that an individual is not a contract worker for the security industry if they are on the register of workers pursuant to the Construction Industry Long Service Leave Act 1997. This is a portable long service benefits scheme that covers workers in the building and construction sector. Also excluded is a person who is a member of class of persons prescribed not to be a contract worker for the industry. Subclause (3) provides despite subclause (1) or clause 4, the director of a company whose only employees or contract workers are directors, and each of the directors participates in the management of the company or shares its profits will be taken to be a contract worker, other than an employee. The effect of this provision is that the directors of the company do not have to be registered as employees, in accordance with Division 3 of Part 3 of the Bill, but may register themselves in accordance with the relevant provisions. Similarly, clause 32 in Division 2 of Part 4 will apply in this situation, rather than clause 31 in Division 2 of Part 4. The partners of a partnership are also not taken to be security workers. Part 2--Crediting service Clause 6 provides identically to clause 6 of Schedule 2 in relation to recognised service for workers in the security industry. Clause 7 provides identically to clause 7 of Schedule 2 in relation to crediting service for workers in the security industry. Clause 8 provides identically to clause 8 of Schedule 2 in relation to the service period for workers in the security industry. Part 3--Long service benefits Division 1--Entitlement to leave Clause 9 provides identically to clause 9 of Schedule 2 in relation to the entitlement to leave for workers in the security industry. Clause 10 provides identically to clause 10 of Schedule 2 in relation to the treatment of public holidays and annual leave in the security industry. 53

Clause 11 provides identically to clause 11 of Schedule 2 in relation to applications for leave by workers in the security industry. Clause 12 provides identically to clause 12 of Schedule 2 in relation to the payments in lieu of leave for workers in the security industry. Division 2--Payments Clause 13 provides identically to clause 13 of Schedule 2 in relation to the definition of ordinary pay for workers in the security industry. Clause 14 provides identically to clause 14 of Schedule 2 in relation to payments for workers in the security industry. Clause 15 provides identically to clause 15 of Schedule 2 in relation to payments in lieu of leave for workers in the security industry. Clause 16 provides identically to clause 16 of Schedule 2 in relation to calculating payments in lieu of leave for workers in the security industry. Clause 17 provides identically to clause 17 of Schedule 2 in relation to the calculation of payments for employees in the security industry. Clause 18 provides identically to clause 18 of Schedule 2 in relation to the calculation of payments for contract workers in the security industry. Clause 19 provides identically to clause 19 of Schedule 2 in relation to entitlements for workers in the security industry who have an entitlement under a corresponding law. Clause 20 provides identically to clause 20 of Schedule 2 in relation to payments by reciprocal authorities for workers in the security industry. Part 4--Ancillary provisions for working out service Clause 21 provides identically to clause 21 of Schedule 2 in relation to the treatment of certain absences from work for workers in the security industry. Clause 22 provides identically to clause 22 of Schedule 2 in relation to the treatment of certain absences from work for workers in the security industry. 54

Clause 23 provides identically to clause 23 of Schedule 2 in relation to the treatment of certain absences from work for workers in the security industry. Part 5--Benefits under other laws Clause 24 provides identically to clause 24 of Schedule 2 in relation to the requirement for a worker in the security industry to elect the law under which they wish to benefit. Clause 25 provides identically to clause 25 of Schedule 2 in relation to reimbursement of payments to an employer in the security industry where a worker has elected to take their benefit under another law or instrument. 55

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