Portable Long Service Leave Regulations 2025

Four concepts are central to understanding the regulations: “allowable absence”, “ordinary weekly pay”, “remuneration”, and “corresponding law”. Each is defined or elaborated by the regulations in ways that materially affect how the portable long service leave scheme operates for both employers and workers.

Allowable absence (regulation 4) is a prescribed concept under section 3(1) of the Act. The regulations label four categories as allowable absences: paid leave (including annual, sick, carer’s, compassionate, bereavement, family and domestic violence, and parental leave); long service leave taken under either the Act or the Long Service Leave Act 1987; community service leave (jury duty and emergency response); and absence due to a work injury for which the worker receives weekly payments under the Return to Work Act 2014. The significance is that allowable absences count as service for accruing long service leave entitlements. Unpaid leave, unless it falls into one of these categories, does not count. This creates an incentive for workers to seek paid leave rather than unpaid, but equally imposes higher compliance costs on employers who must track which absences are allowable.

Ordinary weekly pay (regulation 7) is used to calculate the amount of long service leave payment to which a worker is entitled. The regulations prescribe an expansive inclusion list: annual leave (but not annual leave loading), sick or carer’s leave, community service leave, parental leave paid by the employer (but not Commonwealth Paid Parental Leave), casual loading, penalty rates for weekends, public holidays, late/early work and broken shifts, sleepover allowances, public holiday pay, rostered day off pay, salary sacrifice amounts, workers compensation weekly payments, first aid allowances, stand-down payments, and a catch-all for any other payment not otherwise excluded. Exclusions are equally specific: annual leave loading, parental leave other than employer-paid, superannuation (except salary sacrifice), reimbursements, overtime, unused time off in lieu, bonuses, redundancy/retirement payments, fares and travel allowances, and special irregular rates for occasional disabilities. This list is critical because it sets the baseline for the cash value of a leave entitlement. Including casual loading and penalty rates means that workers with irregular hours receive a higher per-week leave payment than if only base pay were used, but it also increases the cost to industry boards and ultimately to levy-paying employers.

Remuneration (regulation 13) uses an identical list for the purposes of section 48 of the Act, which determines the amount on which scheme levies are calculated. This symmetry means that the revenue side (levies) and the benefit side (leave payments) are based on the same inclusion/exclusion logic, reducing arbitrage opportunities but increasing the complexity of payroll calculations. Employers must separately compute remuneration for levy purposes rather than relying on gross wages alone.

Corresponding law (regulation 5) identifies four interstate portable schemes: ACT (Long Service Leave (Portable Schemes) Act 2009), NSW (Community Services Sector (Portable Long Service Leave) Act 2024), Queensland (Community Services Industry (Portable Long Service Leave) Act 2020), and Victoria (Long Service Benefits Portability Act 2018). This allows service in these jurisdictions to be aggregated for the South Australian scheme. The practical effect is that a worker moving between these states in designated sectors can maintain continuity, but it imposes cross-border data sharing and administrative reconciliation obligations on industry boards.

The regulations affect three primary groups: designated workers, registered employers, and industry boards. Each group has distinct obligations and rights under the regulations, and the impact varies by the size and nature of the business.

Designated workers are individuals employed in a “designated sector” as declared under the Act. The regulations do not list the sectors themselves; those are in the Act or separate declarations. However, once a person is a designated worker, the regulations determine how much long service leave they will be paid (via ordinary weekly pay inclusions) and whether their continuous service is preserved during absences (via allowable absences). Workers who are self-employed contractors or working directors can opt into the scheme under regulation 16, making quarterly payments and receiving 3 months of credited service per payment period. The regulations also affect workers transferring from the old Long Service Leave Act 1987: transitional regulation 19 provides a formula for calculating the liability an employer must pay the board, based on the worker’s ordinary weekly rate under the 1987 Act and months of continuous service accrued before the designated day. This imposes a once-off liability on employers of such workers, which may be significant for long-serving employees.

Employers who become subject to a designated sector must register within 28 days (regulation 8). Failure to do so may invite enforcement under the Act, but the regulations do not specify a penalty for late registration itself - that is left to the Act. Employers must also pay levies based on remuneration as defined in regulation 13, and they face a 20% per annum penalty interest plus $75 for late payments (regulation 14). This penalty structure is designed to deter late payment, but it is disproportionately harsh for small employers with cash flow problems. The regulations also impose record-keeping and reporting obligations for transitional payments: if an employer and worker enter an agreement under Schedule 3 clause 7(6) of the Act, the employer must provide evidence of payment to the board within 28 days.

Industry boards are the bodies administering the scheme for each designated sector. They are the recipients of employer levies, the payers of leave entitlements, and the decision-makers on registration cancellations, salary sacrifice arrangements, and overpayment recovery. The regulations impose time limits on board decisions: 14 days to notify refusal of cancellation of registration (regulation 9), 14 days to notify rejection of a cessation-of-employment payment claim (regulation 12), and 14 days to notify refusal of salary sacrifice arrangements (regulation 17). These are modest obligations, but they create liability if boards are slow. Boards also have a right to recover amounts paid for leave taken before entitlement accrues where the worker ceases work in the sector for 12 months or more (regulation 11). This recovery power is a significant risk for workers who take early leave and then leave the sector; they could be pursued for the full amount.

Self-employed contractors and working directors who opt into the scheme under section 57 of the Act face specific compliance burdens under regulation 16: they must pay quarterly in four prescribed periods, and each payment credits 3 months of service. They must also maintain records for 3 years (regulation 16(3)). For a sole trader, the administrative cost of quarterly reporting and record-keeping may outweigh the benefit of portable leave, especially if they have intermittent work.

The regulations create legal duties primarily for employers and industry boards, and confer limited procedural rights on workers and employers. Understanding these duties requires close attention to time limits, calculation rules, and exceptions.

Employers have a duty to apply for registration within 28 days of becoming an employer in a designated sector (regulation 8). Failure to do so is not penalised in the regulations themselves, but the Act likely imposes offences. Employers also have a duty to pay levies on remuneration (as defined in regulation 13) to the board. If they are late, the regulations impose an automatic penalty: 20% per annum interest on the outstanding amount, plus a fixed $75 penalty (regulation 14). This fixed penalty is notable because it applies per late payment event, not per day, so a $75 fixed fee on a small late payment can be a high effective cost. Employers have a right to apply for cancellation of registration, and the board must give written reasons for refusal within 14 days (regulation 9). Employers also have a right to apply for a salary sacrifice arrangement where the employer pays the worker an amount that would otherwise be paid to the board (regulation 17). The board must decide and notify within 14 days.

Workers have the right to have their long service leave paid based on ordinary weekly pay calculated according to regulation 7. This includes various loadings and allowances, which increases the cash benefit but also increases the cost to the scheme. Workers who take leave before their entitlement fully accrues (under section 38(4) of the Act) face a duty to repay if they cease work in the sector for 12 months or more (regulation 11). The board can recover the full amount paid. This is a significant risk: a worker who takes early leave in good faith and later changes industry may be forced to repay thousands of dollars. Workers also have the right to receive overpayments from the board, but the board has 21 days after becoming aware to refund (regulation 15). That period is reasonable, but “becomes aware” may be ambiguous - the board could delay formal acknowledgment.

Industry boards have duties to maintain a register of employers, available for inspection during ordinary office hours at their principal office and electronically (regulation 10). Boards must notify applicants of rejections within 14 days with reasons (regulations 9, 12, 17). They also have a duty to accept overpayment refund applications and act within 21 days (regulation 15). Boards have the right to recover early leave payments where workers leave the sector for 12 months (regulation 11), and they have the right to prescribe the form for transitional agreements and payment evidence (regulation 19(6)-(7)).

For self-employed contractors and working directors, the regulations impose a duty to pay quarterly and a right to 3 months’ service credit per payment period (regulation 16(1)-(2)). They also must retain records for 3 years (regulation 16(3)). The 3-year record-keeping requirement is a significant burden for small operators who may not have sophisticated accounting systems.

Transitional duties are substantial for employers. Under regulation 19(2), an employer must calculate the amount payable to the board for each worker who has accrued service under the Long Service Leave Act 1987 using a specific formula: ordinary weekly pay under that Act multiplied by months of continuous service (with the rate determined as at the date long service leave is taken or payment made). If the worker changes employer before taking the accrued leave, ordinary weekly pay is determined as at the date the worker ceased with the original employer (regulation 19(4)). This creates a liability that may crystallise years after the worker left. Employers must also provide evidence of any agreement payments to the board within 28 days (regulation 19(7)). Non-compliance could lead to the board disputing the transitional liability.

The regulations do not create new criminal offences or civil penalties; those are in the Portable Long Service Leave Act 2024 itself. What the regulations do is prescribe financial consequences for late payments and grant recovery powers to industry boards. Enforcement is therefore primarily financial and administrative.

The most immediate penalty is the late payment regime under regulation 14. If an employer fails to pay an amount due under the Act by the due date, they must pay penalty interest at 20% per annum (compounding? - not specified, but simple interest is typical) plus a fixed prescribed amount of $75. This $75 is a per-event penalty, not per day. For a large employer with high levy amounts, the 20% interest is the significant deterrent. For a small employer, the $75 fixed fee can be proportionally harsh. For example, if a levy of $100 is one day late, the employer owes 20% of $100 for one day (about $0.05) plus $75 - a total penalty of $75.05, representing a 75% effective penalty rate on the principal. The regulations do not provide a grace period or any discretion for the board to waive the penalty. This is likely to be a source of disputes, especially for small businesses with irregular cash flow.

The second enforcement mechanism is the recovery power in regulation 11. Where a worker has received a payment for long service leave in advance of their full entitlement (under section 38(4) of the Act) and then ceases work in the designated sector for a continuous period of 12 months or more, the board may recover the amount paid. This is a debt recovery right, not a criminal penalty. The board can pursue this through civil proceedings or by offsetting against future payments to the worker (if the worker re-enters the sector). Notably, the regulation says the board “may” recover, implying discretion. However, there are no criteria for when the board should exercise this power. This creates legal uncertainty for workers who might have taken early leave and then changed careers for genuine reasons. The period of “12 months or more” is long enough to capture genuine career changes but short enough to catch workers who take a temporary break. Workers who take early leave and then work in a different sector for 11 months are safe; those who work for 13 months are not. The condition “continuous period” may also be difficult to prove if a worker has gaps.

The regulations also impose notification obligations on industry boards, but these are procedural rather than punitive. Failure of a board to give written notice within 14 days of a decision (under regulations 9, 12, or 17) does not carry a prescribed penalty in the regulations. However, it could form the basis for judicial review or a complaint under administrative law. The 14-day period is tight, and boards may struggle to meet it, especially in complex cases. That could create liability for boards if a worker or employer suffers loss due to delayed notification.

Overpayment refunds under regulation 15 require the board to refund within 21 days of becoming aware. If the board delays beyond 21 days, the worker may have a claim for interest or compensation, but the regulations do not specify a penalty. The 21-day clock starts when the board “becomes aware” of the overpayment - which the board could arguably control by not formally acknowledging until later.

Finally, transitional provisions under regulation 19 impose an obligation on employers to pay calculated amounts to the board. If an employer fails to pay, the board could enforce under the Act, and the late payment penalties in regulation 14 would apply. There are no grace provisions for transitional payments; they are due immediately (subject to any agreement under Schedule 3 clause 7(6)).

The regulations explicitly interact with several other South Australian and interstate laws, as well as Commonwealth legislation. The most important interactions are with the Portable Long Service Leave Act 2024 (the parent Act), the Long Service Leave Act 1987, the Return to Work Act 2014, corresponding laws in other states, the Commonwealth Paid Parental Leave Act 2010, and the Long Service Leave Act 1987 in transitional calculations.

The parent Act, the Portable Long Service Leave Act 2024, provides the framework; the regulations fill in details left to prescription. Almost every regulation begins with “For the purposes of section [X] of the Act”. For example, regulation 7 is made under section 3(4)(c) of the Act, which allows the regulations to specify what payments are included in ordinary weekly pay. Regulation 13 is made under section 48(5) of the Act. Regulation 14 is under section 51(1). The regulations cannot override the Act; they can only supplement it. Any inconsistency between a regulation and the Act would see the regulation invalid. This is standard, but it means practitioners must read both instruments together.

The Long Service Leave Act 1987 (the old Act) is relevant for transitional workers. Regulation 19 uses the definition of “ordinary weekly pay” under the 1987 Act to calculate the amount that an employer must pay the board for accrued service before the designated day. This means the old Act’s interpretation of ordinary pay (which may differ from the new regime’s definition) governs the transition. The 1987 Act also governs the period of continuous service accrued before the designated day. Workers who were covered by the 1987 Act transition into the portable scheme with their accrued service intact, but the money flows differently: instead of the employer paying the worker directly at the end of employment, the employer now pays the board, and the board pays the worker when leave is taken. Regulation 19 also allows employers and workers to enter agreements under Schedule 3 clause 7(6) of the Act, which may modify the timing of payment. The regulations require the board to approve the form of such agreements (regulation 19(6)).

The Return to Work Act 2014 interacts through regulations 4(d) and 7(a)(xii) and 13(a)(xii). Absences due to a work injury for which the worker receives weekly payments are allowable absences, preserving continuity of service. The weekly payments themselves are included in ordinary weekly pay and remuneration for levy purposes. This means that workers on workers compensation still accrue long service leave and that the levy payable by employers on those workers is based on the compensation payments. This is expensive for employers with injured workers, because they pay levies on amounts they are already paying via compulsory insurance.

Corresponding laws in other states (regulation 5) allow service to be aggregated. The regulation lists only four: ACT, NSW, Queensland, and Victoria. Workers who have worked in those states under portable schemes can count that service for entitlement in South Australia. However, the mechanics of how the boards share data and transfer funds is not detailed in these regulations; it is presumably governed by inter-governmental agreements or the parent Act. The list is short - notably missing Western Australia, Tasmania, and the Northern Territory - which may be because those jurisdictions do not have portable schemes for community services. This creates a patchwork: a worker who moves from South Australia to Western Australia may lose continuity.

The Commonwealth Paid Parental Leave Act 2010 is excluded from ordinary weekly pay and remuneration. Regulations 7(a)(iv) and 13(a)(iv) exclude Commonwealth parental leave pay from the inclusion list (while employer-paid parental leave is included). This is logical because the Commonwealth payment is not made by the employer, but it means that a worker on Commonwealth parental leave does not accrue long service leave based on those payments (unless the paid absence is otherwise allowable as a period, but the payment amount itself is nil). The interaction is clean, but employers must distinguish between employer-paid and Commonwealth-paid parental leave.

Finally, the regulations interact with the Long Service Leave Act 1987 in the transitional calculation formula (regulation 19(2)). The formula uses “ordinary weekly rate of pay, determined in accordance with the Long Service Leave Act 1987”. This is a deliberate cross-reference to maintain consistency for the transition. However, the 1987 Act’s definition of ordinary weekly pay may be different from the new regulations’ definition. This creates two parallel computation systems for the same worker during the transition period.

The Portable Long Service Leave Regulations 2025 (SA) were made on 17 July 2025 and published in the South Australian Government Gazette on the same day (Gazette 17.7.2025 p2652). They are numbered as Regulation 2025 No 59. Commencement is 1 October 2025, tied to the commencement of section 74 of the Portable Long Service Leave Act 2024. As of the date of this analysis, there have been no amendments to the regulations. The legislative history note at the end of the document indicates that further information can be obtained from the Index of South Australian Statutes.

Given the regulations are brand new and only commenced on 1 October 2025, there is no amendment history beyond the original enactment. Any future amendments would be published in the South Australian Gazette and reflected in the legislative history. The regulations are made under the Act and may be amended by the Governor in Executive Council without requiring legislative amendment, which is faster but may be less scrutinised. Practitioners should monitor the Gazette for future changes, especially to the inclusion/exclusion lists in regulations 7 and 13, which are likely to be contentious as industries push for certain allowances to be included or excluded to reduce levy burdens.

The transitional provisions in regulations 19 and 20 are time-limited; they operate only for the transition from the old Act to the new scheme. Once the designated day has passed and all accrued service has been transferred, those regulations will become spent. The regulations do not set a sunset date for the transitional provisions, but they will be effectively obsolete after all workers have taken their transitional leave or the board has received all transitional payments.

As at the time of writing, there is no known litigation concerning the Portable Long Service Leave Regulations 2025. The regulations commenced on 1 October 2025, and it is too early for any disputes to have reached a court. However, potential areas of future litigation can be identified from the text.

The most fertile ground for disputes is likely to be the inclusion and exclusion lists for ordinary weekly pay (regulation 7) and remuneration (regulation 13). The catch-all inclusion in paragraph (a)(xv) - “any other payment made to, or for the benefit of, a designated worker (other than a payment of a kind referred to in paragraph (b))” - is extremely broad and will inevitably lead to arguments over whether a particular payment (e.g., a one-off project bonus, a uniform allowance, or a mobile phone allowance) falls into paragraph (b) exclusions. The exclusion list is specific but not exhaustive; paragraph (b)(x) excludes “any payment in the nature of a special rate paid to the worker on an irregular basis to compensate for occasional disabilities”, but the boundary between a “special rate” and a “penalty rate” (which is included under (a)(vii)) could be litigated. For example, a worker who receives a small additional payment for working in extreme heat might argue it is a penalty rate; the employer might argue it is a special rate for occasional disabilities.

Another litigation risk is the recovery power in regulation 11. The board “may” recover amounts paid for early leave if the person ceases work in the sector for 12 months or more. The worker may challenge the board’s decision to recover, arguing that the discretion should have been exercised in their favour. There are no criteria in the regulation for when recovery should be pursued, which leaves the board open to claims of unreasonableness or improper purpose. The phrase “continuous period of 12 months or more” could also be ambiguous: does a break of a few days reset the clock? What if the worker works for 11 consecutive months, takes one month unpaid leave, then works another two months? Arguably not a continuous period of 12 months. Litigation over what constitutes a “continuous period” is possible.

The penalty interest provisions in regulation 14 could be challenged as a penalty for the purposes of the law of penalties, though such challenges are rare in regulatory contexts. The $75 fixed amount plus 20% interest might be argued to be punitive rather than compensatory, but similar provisions exist in other jurisdictions and have been upheld.

Transitional disputes may arise from regulation 19, particularly the formula in subregulation (2). The formula uses “ordinary weekly rate of pay, determined in accordance with the Long Service Leave Act 1987”. That Act may have its own interpretation disputes that carry over. Additionally, subregulation (4) deems the worker’s ordinary weekly pay for the purpose of transitional payment to be determined as at the date the worker ceased with the original employer. This could be unfair if the worker later increased their hours or rate with a different employer, but the transitional payment is based on the (possibly lower) historical rate. A worker might challenge this as inequitable, though the legislation is clear.

Salary sacrifice arrangements under regulations 17 and 18 could also generate litigation if the board refuses an employer’s application. The board must give reasons within 14 days, but the grounds for refusal are not specified in the regulations; they are in the Act. Disputes over the board’s interpretation of “salary sacrifice arrangement” are possible.

Finally, the definition of “work” in regulation 6 - which sets a minimum of 2 consecutive hours - could lead to disputes for broken shifts or sleepover shifts. Whether a sleepover counts as “work” and how many consecutive hours are worked could be litigated, especially for disability support workers who may be required to sleep on site.

Several provisions in the regulations contain traps that may catch unwary employers, workers, or board administrators.

First, the inclusion of casual loading, penalty rates, and shift allowances in ordinary weekly pay (regulation 7(a)(vi)-(viii)) means that a casual worker’s leave payment will include the 25% loading. This is generous to the worker but increases the cost to employers who ultimately fund the scheme via levies. However, the same casual loading is also included in remuneration for levy purposes (regulation 13(a)(vi)), so the cost is roughly offset. The trap is that an employer who calculates levies based on base wages only (without loading) will underpay the levy and face penalties.

Second, the exclusion of overtime from both ordinary weekly pay and remuneration (regulation 7(b)(v) and 13(b)(v)) is a trap for workers. A worker who regularly works substantial unpaid overtime will not have that reflected in their leave payment. The regulations treat overtime as a separate category, distinct from penalty rates. This is defensible because overtime is often voluntary and varies, but it means that a worker who relies on overtime for a significant portion of income will get a lower long service leave payment than they might expect.

Third, the fixed $75 late payment penalty (regulation 14(2)) applies in addition to the 20% interest. For a small amount that is only a few days late, the $75 can be absurdly high. Employers must ensure they pay even small levies on time. There is no de minimis exception. The trap is that an employer who pays $10 of levy one day late owes $75.05 - a 750% penalty rate. This could be shocking to a small business.

Fourth, the recovery power for early leave payments (regulation 11) can apply even if the worker took the early leave in good faith and later left the sector for a reason outside their control (e.g., industry downturn, relocation). The board “may” recover, but there is no requirement to consider hardship. Workers should be cautious about taking early leave unless they are confident they will remain in the sector for at least 12 months after.

Fifth, transitional formula (regulation 19(2)) uses “ordinary weekly rate of pay, determined in accordance with the Long Service Leave Act 1987”, but that rate is determined as at the date the worker commences leave or receives payment, not as at the date of transition. If the worker delays taking leave, their ordinary weekly rate under the old Act may increase (due to pay rises), and the employer’s liability to the board increases accordingly. Employers who delay paying the board may face a higher liability. The trap is that an employer cannot freeze the amount; they must keep track of the worker’s rate under the old Act until the leave is taken.

Sixth, the 28-day registration deadline (regulation 8) applies to any employer who becomes an employer in a designated sector. This includes a new business, a business that expands into a designated sector, or a business that acquires another business with designated workers. The 28 days runs from “after the employer becomes an employer”, which may be ambiguous if a business gradually takes on workers in a sector. Failure to register could lead to penalties under the Act.

Seventh, the register of employers (regulation 10) must be available for inspection during ordinary office hours at the board’s principal office and by electronic means. This is a transparency measure, but it also allows competitors, unions, and journalists to see who is registered and potentially gauge business activity. For small employers in a niche sector, this could be a privacy concern.

Eighth, the overpayment refund period of 21 days after the board becomes aware (regulation 15) could be gamed by the board if it delays formally acknowledging awareness. The worker should document the date they notified the board.

Ninth, the requirement for self-employed contractors to pay quarterly (regulation 16(1)) and receive only 3 months credit per period means that if they miss a quarter, they lose 3 months of credit. A contractor who has an intermittent income may struggle to pay every quarter and could lose service continuity.

Tenth, the salary sacrifice notification period for the board is 14 days (regulation 17), but the employer must pay the worker first and then apply for board approval within 21 days (regulation 18). If the board refuses, the employer may have already paid the worker and cannot recover the money easily. Employers should seek board approval before making any salary sacrifice arrangement.

Compliance under the Portable Long Service Leave Regulations 2025 requires attention to registration, payroll calculations, levy payments, record-keeping, and transitional obligations. The following steps are derived from the regulatory text.

Step 1: Determine if you are an employer in a designated sector. The sectors are declared under the Act; the regulations do not list them, so check the Act and any declarations. If you are, you must apply for registration within 28 days of becoming an employer in that sector (regulation 8). The application is to the relevant industry board. Do not delay; the 28-day clock starts when you first employ a designated worker, not when you become aware of the scheme.

Step 2: Calculate ordinary weekly pay correctly for each designated worker. Use the inclusion list in regulation 7(a) and the exclusion list in regulation 7(b). Pay special attention to casual loadings, penalty rates, and shift allowances - these must be included. Overtime and bonuses must be excluded. Maintain records showing how you arrived at each worker’s ordinary weekly pay. This will be the basis for any leave payment the board makes to the worker.

Step 3: Calculate remuneration for levy purposes using the same inclusion/exclusion lists as in regulation 13. This is identical to ordinary weekly pay in structure, but note that remuneration is used to determine the levy amount due to the board. It is not the same as gross wages for other purposes (e.g., superannuation). The inclusion list means that workers on workers compensation (weekly payments) and on paid leave (including annual leave payments) still generate a levy liability for the employer.

Step 4: Pay levies on time to avoid the late payment penalty. The due dates are specified in the Act, but the regulations set the penalty: 20% per annum interest plus $75 per late payment. Set up automated reminders. If you anticipate a cash flow issue, contact the board proactively to discuss payment arrangements - the regulations do not provide a waiver mechanism, but the board may have administrative discretion.

Step 5: For transitional workers (those with accrued service under the Long Service Leave Act 1987), calculate the amount you must pay the board using the formula in regulation 19(2): ordinary weekly rate of pay (under the 1987 Act) multiplied by months of continuous service (as at the designated day). Use the rate as at the date the worker commences leave or receives payment, not the historic rate. If the worker changes employer before taking leave, use the rate as at the date they ceased with you (regulation 19(4)). Pay this amount to the board in accordance with any agreement under Schedule 3 clause 7(6). If you enter such an agreement, provide evidence of payment to the board within 28 days in the approved form (regulation 19(7)).

Step 6: If a worker takes long service leave before their full entitlement accrues (under section 38(4) of the Act), the board may pay the worker directly. You do not have a direct obligation under the regulations, but you should be aware that if the worker leaves the sector for 12 months or more, the board may recover the amount from the worker (regulation 11). This is the worker’s risk, but you may need to inform them.

Step 7: For self-employed contractors or working directors who wish to participate, opt in under section 57 of the Act and make quarterly payments in the periods prescribed in regulation 16(1). Each payment (even if in a different amount) credits 3 months of service. Keep records of payments for at least 3 years (regulation 16(3)). If you stop paying for a quarter, you will not receive credit for that period.

Step 8: If you enter into a salary sacrifice arrangement where you pay the worker an amount that would otherwise go to the board as a levy (section 58 of the Act), first ensure the board approves. Apply to the board; the board must notify you of its decision within 14 days (regulation 17). Do not make the payment until after you receive approval, because if the board refuses, you may be stuck. If approved, and you make the payment, notify the board within 21 days after the payment is made (regulation 18).

Step 9: Monitor for overpayments from the board. If the board pays a worker more than they are entitled, the board must request a refund within 21 days of becoming aware (regulation 15). As an employer, you may not be directly affected, but if you discover an overpayment, notify the board promptly to start the 21-day clock.

Step 10: Maintain all records related to ordinary weekly pay calculations, levy payments, transitional amounts, and salary sacrifice arrangements. The regulations do not specify a general retention period (except 3 years for self-employed contractors under regulation 16(3)), but the Act likely imposes a broader obligation. Keep records for at least 7 years for safety.

Step 11: Be prepared for inspections. The register of employers is public (regulation 10). Your levy payment history may be scrutinised. Ensure your payroll system can separately track the inclusion items (e.g., casual loading, penalty rates) for each worker. This may require changes to existing software.

Step 12: Stay informed of amendments. The regulations are new and may be updated. Monitor the SA Gazette and the website mentioned in the legislative history. Pay particular attention to the inclusion/exclusion lists in regulations 7 and 13, which could be amended if industry lobbying succeeds in adding or removing specific allowances.