Media Statement 28 January 2025

Some mining equipment maintenance workers at Hitachi Construction Machinery (Australia) Pty Ltd are set to enjoy the benefits of the Coal Long Service Leave portable long service leave scheme after a full bench of the Federal Court recently found four of its employees were eligible employees under the Coal Mining Industry (Long Service Leave) Administration Act 1992 (the Admin Act).

The judgement provides clarity and guidance to industry regarding the interpretation of eligibility under the legislation, specifically relating to employees of equipment supply companies who work on black coal mine sites. The outcome also endorses that there is no time limitation for recovering historical and additional levies.

Our full media statement (issued 28 January 2025) can be found below:

Federal Court dismisses Hitachi appeal regarding breach of portable long service leave laws

On 16 December 2024, the full bench of the Federal Court dismissed Hitachi’s appeal in Hitachi Construction Machinery (Australia) Pty Ltd v Coal Mining Industry (Long Service Leave Funding) Corporation. 

The full bench agreed with the 2023 decision of the Federal Court that four Hitachi employees, who had worked on black coal mine sites across the Hunter Valley in NSW, were eligible employees under the Coal Mining Industry (Long Service Leave) Administration Act 1992. The court also endorsed that there was no time limitation for recovering historical levies from Hitachi. 

Accordingly, the Court-imposed pecuniary penalty of $40,000 on Hitachi stands. The penalty relates to Hitachi’s failure to submit levy returns associated with the accrual of long service leave to Coal LSL in respect of the four eligible employees and its failure to submit annual Audit Reports as required under the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992. 

Coal LSL’s CEO Darlene Perks said this is a material outcome for Coal LSL and supports Coal LSL’s interpretation of ‘eligible employee’ for the purposes of the Scheme. 

“We will continue to engage with Hitachi regarding eligibility of other employees, especially employees working in similar roles to the four eligible employees who were the focus of this court ruling,” Ms Perks said.  

Coal LSL’s Chief Regulatory Officer Sharife Rahmani said the judgment provides clarity and guidance to industry regarding Coal LSL’s interpretation of the legislation, specifically relating to the eligibility of employees of equipment supply companies who work on mine sites. 

“Coal LSL will continue to work collaboratively with employers to improve their understanding of their obligations under the legislation and the ramifications of non-compliance. In doing so, we are confident our regulatory intent and commitment to education, engagement, and enforcement activities supports eligible employees of the Scheme to accrue their rightful long service leave entitlements,” Mr Rahmani said. 

Background 

• The Federal Court dismissed Hitachi’s appeal on 16 December 2024. The full judgement is available here. 

• The appeal was heard in May and August 2024. 

• Justice Raper delivered her judgment on 8 February 2023. The full judgment is available here. 

• The orders were made on 6 October 2023. The full penalty determination is available here. 

The Coal Mining Industry (Long Service Leave Funding) Corporation (Coal LSL) is the custodian and regulator of the long service leave scheme. The Commonwealth scheme was established in 1949 for employees within Australia’s black coal mining industry. It constitutes a unique national long service leave arrangement for the black coal mining industry whereby an eligible employee accrues long service leave based on their service in that industry, rather than service with a particular employer. 

For further enquiries, please contact Maryanne Fyfe, Head of Government Relations, on 0408  777  232.