Media Statement 28 March 2024

The Federal Court fines Undamine Industries for breaching the portable long service leave laws.

On 16 February 2024, Justice Logan of the Federal Court imposed a civil penalty of $40,000 on Payne (QLD) Pty Ltd in its capacity as trustee for the Undamine Unit Trust, trading as Undamine Industries, for being in contravention of the Section 10 of the Coal Mining Industry (Long Service Leave) Collection Act 1992 (the Collection Act).

Justice Logan found that Undamine Industries, a specialist contracting company which provides underground services to coal mining companies in Queensland and New South Wales, had failed to submit their annual Audit Report to the Coal Mining Industry (Long Service Leave Funding) Corporation (Coal LSL) for the years 2018, 2019, 2020, 2021 and 2022 on the relevant due dates under the Collection Act.

Coal LSL’s Chief Executive Officer, Darlene Perks said that Undamine Industries has fallen well short of its legal obligations.

“As a Commonwealth Government entity, public financial corporation, custodian and regulator, we are committed to ensuring employers are compliant with applicable laws and regulations.”

“We require all employers of eligible employees within Australia’s black coal mining industry to submit an annual audit report no later than 6 months after the end of that financial year. A failure to submit an audit report by the required date is a strict liability offence.”

“If an employer does not take appropriate action to comply with our governing legislation, Coal LSL will consider legal action. We will take all necessary steps to deter non-compliance with the statutory scheme and ensure we are connecting employees in the black coal mining industry to their long service leave entitlements,” Ms Perks said. 

Background 

• Justice Logan delivered his judgment on 9 November 2023. The full judgment is available here.

• The orders and penalty determination were made on 16 February 2024.

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.