Media Statement 27 July 2026

Federal Court confirms Coal LSL’s approach to calculation of eligible wages for casual employees

The Federal Court has handed down its judgment in WorkPac Pty Ltd v Coal Mining Industry (Long Service Leave Funding) Corporation [2026] FCA 874, confirming Coal LSL’s approach to calculating eligible wages for casual employees paid a flat hourly rate.

WorkPac had challenged Coal LSL’s published guidance on calculation of eligible wages under section 3B(3) of the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992, for casual employees. By way of cross claim, Coal LSL challenged WorkPac’s approach to calculating eligible wages for its flat rate casual employees.

The Court found that when a casual employee is paid a flat hourly rate, that rate will usually be used to calculate eligible wages unless the employment documents clearly show that a different base rate applies. The Court also found that eligible wages for casual employees should be based on all rostered hours worked during the relevant period.

Coal LSL Chief Regulatory Officer Sharife Rahmani said the decision provided important clarity for employers and employees across the black coal mining industry.

‘We welcome the Court’s decision, which confirms that levy contributions for eligible casual employees will continue to be calculated based on the hours they are rostered and paid to work,’ Mr Rahmani said.

‘It also gives employers clarity on how to calculate eligible wages for casual employees paid a flat hourly rate, supporting consistent compliance across the industry.

’Coal LSL’s purpose is to ensure eligible employees are connected with their long service leave benefits and this decision supports that outcome,’ he concluded.

Final orders are being developed. Coal LSL will keep impacted stakeholders informed as the matter progresses.

Background Read the Full Federal Court judgment: WorkPac Pty Ltd v Coal Mining Industry (Long Service Leave Funding) Corporation [2026] FCA 874, handed down on 8 July 2026.