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What is Long Service Leave?
Long Service Leave (LSL) is a period of paid leave granted to employees in Australia as a reward for long and continuous service with the same employer. It is a valuable entitlement separate from annual leave. Unlike other forms of leave, LSL is designed to provide an extended break after many years of service, typically ranging from two to three months. Eligibility and the exact amount of leave you receive depend heavily on the state or territory in which you work, as each has its own Long Service Leave Act.
How is Long Service Leave Calculated?
Long service leave accrues progressively each year you work. The key factors are your state or territory's rules, which determine: the rate at which leave accumulates per year of service (e.g., approximately 0.8667 weeks per year in NSW, VIC, QLD, WA, ACT, and under the Federal system; 1.3 weeks per year in SA, TAS, and NT), the number of years needed to become eligible to take the leave (the full entitlement threshold, e.g., 7 years in Victoria, 10 years in NSW), and the minimum service period to receive any payment if you leave your job (the pro-rata threshold).
The Calculation Steps
First, your total years of service are calculated from your start date until today (or your termination date if provided), including fractional years for completed months. This decimal value is then multiplied by your state's accrual rate to find the total weeks of leave you have earned. If you are still employed, you can only access this leave once you have reached your state's full entitlement threshold. If you are leaving your job, you receive payment for all accrued leave provided you have met your state's lower pro-rata eligibility threshold. Your leave pay is this number of weeks multiplied by your current weekly pay (hourly rate × average weekly hours).
Example Calculation
Consider Sarah, an employee in Victoria. She started on March 10, 2019, works 40 hours per week at $29.75 per hour, and is not leaving. As of October 2026, she has completed 7 full years and over 7 months of service. Victoria's accrual rate is approximately 0.8667 weeks per year. Her accrued weeks are 7.6 years × 0.8667 ≈ 6.59 weeks. However, Victoria's full entitlement threshold is 7 years. Since she has surpassed this, she is eligible to take all 6.59 weeks. Her weekly pay is 40 × $29.75 = $1,190. Her estimated leave pay is 6.59 × $1,190 ≈ $7,842.
Now, take David in Queensland. He started on January 15, 2018, works 38 hours per week at $32.50 per hour, and resigns on October 20, 2026. His service is approximately 8.75 years. Queensland's accrual rate is also ~0.8667 weeks/year, and its pro-rata threshold is 7 years. Since he is leaving and has more than 7 years, he is entitled to his full accrued leave: 8.75 × 0.8667 ≈ 7.58 weeks. His weekly pay is 38 × $32.50 = $1,235. His estimated leave pay is 7.58 × $1,235 ≈ $9,361.
Common Scenarios and Important Considerations
- Casual Employees: In most states, casual service counts towards continuous service, provided the employment has been ongoing. Your average weekly hours should reflect your typical engagement.
- Changing Employers: Generally, long service leave is not portable between unrelated employers. Exceptions exist in industries with portable schemes (e.g., construction, contract cleaning).
- Rate of Pay: Long service leave is typically paid at your ordinary rate of pay immediately before starting the leave, including any loaded rates but usually excluding overtime.
- Taking the Leave: You must give your employer reasonable notice. Employers can refuse specific dates on reasonable business grounds but cannot deny the entitlement.
- Accrual Continues: Leave continues to accrue indefinitely after you reach the full entitlement threshold. You don't get a single 'block' and then stop; you keep earning more weeks each year.
Next Steps: Using Your Entitlement
Once you know your accrued long service leave, you can plan to take it. It's advisable to discuss your intentions with your employer well in advance. To formally request your leave, you can use a Letter Requesting Annual Leave document. While designed for annual leave, it is perfectly suitable for LSL. Simply adapt the details, clearly stating that you are requesting your accrued long service leave, specifying the number of weeks and your preferred dates. This provides a clear, written record of your request and helps ensure a smooth process for you and your employer.