Leave Management & Entitlements

Long service leave entitlement

What Is Long Service Leave Entitlement?

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

How Long Service Leave Works in Australia

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:

  • Accrual period (usually 7, 10, or 15 years)
  • Entitlement duration (commonly 8.6667 weeks for 10 years of service)
  • How LSL is calculated and paid
  • Pro-rata entitlements for employees who resign or are terminated before the full accrual period

Here’s a general overview of how long service leave is accrued across Australia:

Jurisdiction Eligibility Leave Accrued
VIC After 7 years 1 week per 60 weeks of service
NSW After 10 years 8.667 weeks for 10 years
QLD After 10 years 8.667 weeks for 10 years
SA After 10 years 13 weeks for 10 years
WA After 10 years 8.667 weeks for 10 years
TAS After 10 years 8.667 weeks for 10 years
ACT After 7 years 6.066 weeks for 7 years
NT After 10 years 13 weeks for 10 years

Note: Industry-specific long service leave schemes may also apply, such as in construction or cleaning.

When Can an Employee Take Long Service Leave?

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.

Pro-Rata Long Service Leave

Employees may be entitled to pro-rata long service leave if they:

  • Resign after a minimum qualifying period (e.g. 7 years in VIC)
  • Are made redundant
  • Retire
  • Have their employment terminated (except in cases of serious misconduct)

In these cases, the entitlement is calculated proportionally based on years of service completed.

Long Service Leave and Casual Employees

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.

Does Long Service Leave Get Paid Out on Termination?

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.

Employer Responsibilities

Employers are legally obligated to:

  • Keep accurate records of employee service and leave balances
  • Calculate LSL entitlements correctly
  • Honour LSL requests within reason
  • Pay out long service leave upon termination, where applicable
  • Comply with the specific rules in their jurisdiction

How Microkeeper Can Help

Microkeeper's HRIS system, simplifies leave management, including long service leave, through:

  • Automated leave accrual tracking based on hours worked
  • Customisable leave rules to match your state’s regulations
  • Accurate record-keeping to ensure compliance
  • Integration with rostering and payroll to streamline approvals and payments

Learn More About Microkeeper's Leave Management Features

FAQs About Long Service Leave Entitlement

Can long service leave be cashed out?

This depends on state laws. Most jurisdictions don’t allow cashing out LSL unless the employee is terminating employment.

What happens to LSL if the business is sold?

In most cases, service is transferred to the new employer, and LSL continues to accrue.

Does unpaid leave affect LSL accrual?

It can. Generally, only paid leave (like annual leave or personal leave) contributes to LSL accrual. Unpaid leave may not count unless otherwise stated.

Best Practices for Managing LSL

  • Use a payroll and HR platform that automates LSL tracking
  • Understand your obligations under the correct jurisdiction
  • Communicate clearly with employees about their entitlements
  • Maintain detailed employment records from day one

Final Thoughts

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.