Hitachi appeal dismissal and what this means for employers

The Hitachi Construction Machinery (Australia) Pty Ltd v Coal Mining Industry (Long Service Leave Funding) Corporation case is an important reminder for employers with employees working on black coal mine sites to understand their responsibilities under governing legislation.

The case saw Hitachi, in addition to having to pay levies due under the scheme, receive a penalty of $40,000 for failing to submit levy returns and annual Audit Reports. Hitachi appealed the case; however, the Federal Court dismissed the appeal on 16 December 2024.

Employees working on black coal mine sites who perform duties relating to the day-to-day operations of the mine may be considered eligible employees under the Scheme. It does not matter that the employer does not consider their business to be in the mining industry, these employees may still be eligible. In this case the court found that four Hitachi employees who were performing repairs and maintenance to equipment on a black coal mine site were eligible employees in the scheme.

An eligible employee’s entitlement to LSL is based on the employee's service in the black coal mining industry, rather than service with a particular employer. As an employer it is important to know your obligations, and the rights of your employees.

Coal LSL will continue to work with employers to enhance their understanding of their obligations under the legislation and the consequences of non-compliance with the Scheme to ensure positive outcomes for all involved.

If you have employees on black coal mining sites and are unsure of your obligations, please contact us on 1300 825 625 or via query@coallsl.com.au and our friendly team will assist you.

For more information about the Hitachi appeal, you can read the media statement here.