What is long service leave?
Long service leave is the name of an additional period of paid leave to which employees may be entitled after they have worked for a company for a certain number of years. The exact entitlement differs depending on the state or territory in which your organisation is based.
Long service leave is granted to eligible employees on top of their annual leave and may be accrued pro rata.
Who qualifies for long service leave?
In Australia, most workers are eligible for long service leave at some point in their careers. It doesn’t matter whether they are full-time or part-time employees, as long as they have been employed for a certain, extended period of time.
In some states and territories, even casual employees can qualify for long service leave.
Long service leave entitlements by state and territory
In the following section, you’ll find an overview of the specific long service leave entitlements in each Australian state and territory.
Long service leave ACT
In the Australian Capital Territory, the Long Service Leave Act 1976 covers long service leave entitlements.
After seven years of continuous employment, workers in the ACT are entitled to 6.0667 weeks of paid long service leave. After this, each additional year of employment accrues more long service leave at a rate of 1/5 of a month every year.
After a minimum period of five years of continuous employment, ACT employees can have their long service leave paid out pro rata upon termination of their employment.
Long service leave NSW
In New South Wales, long service leave entitlements are covered by the NSW Long Service Leave Act 1955. Once an employee has worked for the same company for a period of ten years, they become eligible for two additional months (8.67 weeks, to be exact) of paid leave.
After five years of service, an employee may be entitled to pro rata long service leave if they need to give up their job due to illness or a domestic or other pressing necessity. If the employee is let go by the employer, they are also entitled to pro rata long service leave unless they are terminated because of serious and wilful misconduct.
After ten years of employment, employees who are terminated receive two months of long service leave along with their pro rata leave. The reason for the termination is irrelevant in this case.
Long service leave NT
In the Northern Territory, the Long Service Leave Act 1981 covers long service entitlements. After ten years of continuous employment, NT employees are eligible for 13 weeks of long service leave. Beyond that, employees qualify for 6.5 weeks of additional long service leave for every five years of employment.
Once they have been employed continuously for at least ten years, employees are also entitled to have their long service leave paid out when their employment ends for whatever reason.
Long service leave QLD
Queensland employees come under the Industrial Relations Act 2016. Here, workers are entitled to 8.67 weeks of paid leave after ten years of continuous employment in the same organisation. For the next five years of employment beyond that, they qualify for an additional 4.33 weeks of paid long service leave.
If a Queensland employee is terminated after ten years of continuous employment, they are automatically entitled to have their long service leave paid out. After ten years of employment, long service leave entitlements are calculated on a pro rata basis.
Long service leave SA
In South Australia, long service leave entitlements are governed by the Long Service Leave Act 1987. Employees here are entitled to 13 weeks of long service leave after ten years of continuous employment with the same or a related organisation. For every year after that, employees qualify for an additional 1.3 weeks of long service leave.
When an employee with over ten years of employment is terminated, they must be paid 13 weeks of long service leave as well as pro rata leave, irrespective of the reason for their termination.
Employees who have been employed between seven and ten years are entitled to pro rata long service leave based on 1.3 weeks of leave for each completed year of employment.
Long service leave TAS
In Tasmania, long service leave entitlements come under the Long Service Leave Act 1976. After ten years of continuous employment, Tasmanian employees are entitled to 8.66 weeks of long service leave. For every five years of employment after this, they are entitled to an additional 4.33 weeks of long service leave.
Employees who have been employed continuously for over ten years are entitled to have their long service leave paid out when their employment is terminated for any reason. The payout amount corresponds to 8.33 weeks of long service leave in addition to pro rata leave. Employees with seven to ten years of continuous service may also qualify for pro rata leave.
Long service leave VIC
In Victoria, long service leave entitlements are covered by the Long Service Leave Act 2018. Victorian employees qualify for long service leave after seven years of continuous employment with the same employer. The amount of long service leave is calculated on the basis of the employee’s total number of weeks of employment divided by 60, multiplied by the weekly rate of pay they receive at the time they take their leave.
If an employee is terminated after seven years of employment, the employer must pay out their long service leave on a pro rata basis, irrespective of the reason for the termination.
Victorian employers can use the long service leave calculator provided by Business Victoria to calculate the correct amount of leave for their staff.
Long service leave WA
In Western Australia, long service leave entitlements are covered by the Long Service Leave Act 1958. Western Australian employees with over ten years of service qualify for 8.67 weeks of paid long service leave, as well as 4.33 weeks of paid leave for every five years of employment after that.
If an employee with ten or more years of service is terminated, they are entitled to have their entire long service leave entitlement paid out in cash, no matter the reason for their termination.
Employees with seven to ten years of continuous service qualify for pro rata leave when their employment ends, unless they are terminated for serious and wilful misconduct.
List of long service leave agencies by state and territory
To find out about which long service leave entitlements apply to your business, contact the responsible long service leave agency in your state or territory:
- Australian Capital Territory – WorkSafe ACT
- New South Wales – NSW Industrial Relations
- Northern Territory – NT Government
- Queensland – Queensland Industrial Relations
- South Australia – SafeWork SA
- Tasmania – WorkSafe Tasmania
- Victoria – Business Victoria
- Western Australia – Department of Mines, Industry Regulation and Safety
Related: Australia Leads the Way on Family-Friendly, Flexible Jobs
What is portable long service leave?
In some Australian states and territories, employees in certain sectors qualify for portable long service leave. The Fair Work Ombudsman specifies that this means employees keep their long service leave entitlement even if they work on different projects for one or more employers, rather than being continuously employed by the same organisation.
The industries in which employees are eligible for portable long service leave are the building and construction, security, contract cleaning, community services and coal mining sectors.
Can long service leave be paid out instead?
Whether or not an employee is eligible to have their long service leave paid out in cash instead of taking the time off depends on their state or territory, as legislation differs in each location. However, long service leave can’t usually be cashed out while the employee is still working for the company, and payouts typically happen once the worker’s employment is terminated. In many cases, pro rata payouts are also possible.
How is long service leave taxed?
Long service leave is taxed as income. This means it is taxed at the employee’s marginal tax rate and included in their ordinary income subject to the usual tax scale.
If an employee has their long service leave paid as a lump sum, this can therefore lead to high taxes.
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Keep this long service leave guide handy, so you can refer back to it and know your obligations when your employees come to request extra time off after a long period of employment.
