Long Service Leave (LSL) is a paid leave entitlement that Australian employees earn after a prolonged period of continuous service with the same employer. It recognises and rewards employee loyalty by granting an extended period of paid time off, typically after 7 to 10 years of service, depending on the applicable state or territory legislation.
Unlike annual leave or personal leave entitlements, long service leave is regulated at the state and territory level, not under the National Employment Standards (NES). However, in all jurisdictions, LSL is a legally protected entitlement.
Fair Work – Long Service Leave
Long service leave accrues based on continuous employment, and eligibility depends on the jurisdiction (e.g. VIC, NSW, QLD) in which the employee works. Each state or territory has its own rules around:
Here’s a general overview of how long service leave is accrued across Australia:
Note: Industry-specific long service leave schemes may also apply, such as in construction or cleaning.
Once the minimum period of service has been met, employees are generally entitled to request long service leave at a mutually agreeable time. Some states allow pro-rata LSL if the employment ends before full entitlement—usually after 5 or 7 years depending on the jurisdiction.
Employees may be entitled to pro-rata long service leave if they:
In these cases, the entitlement is calculated proportionally based on years of service completed.
Casual and part-time employees can accrue long service leave, provided they maintain a continuous employment relationship with their employer. This includes consistent, regular hours and no significant breaks between engagements.
Yes. If an employee has accrued long service leave or is entitled to a pro-rata payout, it must be paid on termination of employment. The rate of pay is usually calculated based on the employee’s ordinary rate of pay at the time of taking leave or termination.
Employers are legally obligated to:
Microkeeper's HRIS system, simplifies leave management, including long service leave, through:
Learn More About Microkeeper's Leave Management Features
This depends on state laws. Most jurisdictions don’t allow cashing out LSL unless the employee is terminating employment.
In most cases, service is transferred to the new employer, and LSL continues to accrue.
It can. Generally, only paid leave (like annual leave or personal leave) contributes to LSL accrual. Unpaid leave may not count unless otherwise stated.
Long service leave is a unique and valuable entitlement that supports employee loyalty and retention in Australian workplaces. Employers who proactively manage and honour this entitlement not only stay compliant but also foster long-term relationships with their team. With smart tools like Microkeeper, tracking, approving, and paying long service leave is simple, compliant, and efficient.
Disclaimer: This article is for informational purposes only. For legal advice, please consult the relevant state authority or a qualified workplace relations expert.
