Employer coverage boundary eligibility scenario
A fictional scenario developed to give an example for how the Community Services Industry portable long service leave scheme applies to different employers across the industry.
Visiting Medical Officer (VMO) vs Employees
Scenario
Hopewell Community Mental Health Service delivers community-based psychosocial support and counselling services.
The organisation engages:
- a psychiatrist as a Visiting Medical Officer (VMO) under a services contract
- mental health clinicians, peer workers, and administrative staff as employees.
The VMO operates under their own ABN, invoices monthly, sets their own hours, and works across multiple organisations.
Assessment
Hopewell’s predominant purpose is community mental health support, so it is an in-scope employer and must register for its employees.
The VMO is not covered by the organisation because they are a contractor.
The organisation:
- does not pay levy for the VMO
- does not report the VMO’s earnings
- has no portable long service leave liability for the VMO.
As a contractor, the VMO may choose to opt in independently, but this occurs outside the employer relationship.
Outcome
- Employer registration required
- Employees are covered
- VMO is not covered by the employer
What evidence would we look for?
- Services contract with the VMO
- ABN and invoicing arrangements
- Evidence of autonomy (hours, clients, multiple engagements)
- Payroll records confirming no wages paid to the VMO
- Contractor vs employee classification records
Long Service Leave Act 1955
Important to mention here.
If the VMO has ever been engaged as an employee, any long service leave accrued during that period remains covered under the Long Service Leave Act 1955.
All organisations and examples in these scenarios are fictional and provided for illustration only.
The guidance is based on the specific context provided. If your circumstances differ from the situations described, you can contact the Long Service Corporation for support in determining your eligibility.
