Long service leave policy template
A free, ready-to-edit long service leave policy template for Australian employers. Set out eligibility, accrual, how leave is taken, payment and pro-rata entitlements in line with the state and territory laws that govern long service leave — no signup required.
Long service leave policy
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By downloading, you agree to our template disclaimer
This long service leave policy template reflects Australian long service leave standards at the time of publication and is provided as a general guide to adapt for your business. Long service leave is set by state and territory law, so always confirm the rules for each jurisdiction you employ in. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why your business needs a long service leave policy
Long service leave (LSL) rewards employees for a long period of continuous service with one employer. Unlike most leave types, it isn’t set by the National Employment Standards under the Fair Work Act — it’s governed by separate long service leave legislation in each state and territory. That means qualifying periods, accrual rates and pro-rata rules differ depending on where your people work.
A written policy turns that complexity into something your team can actually follow. It tells employees when they become eligible, how their entitlement builds with leave accrual, how to request leave, and what they’re paid when they take it or leave the business. For multi-state employers it removes guesswork and protects you from accidental underpayment.
The policy applies to all eligible employees and pairs naturally with your annual leave policy and broader leave policy. Store it and capture acknowledgements in your HR software so you can show every worker has read and understood it.
What a long service leave policy should cover
The essentials for managing state-based LSL with confidence
State & territory laws
Which long service leave legislation applies and how entitlements differ by jurisdiction.
Eligibility periods
When employees qualify — typically after 7–10 years of continuous service depending on the state.
Continuous service
What counts as continuous service and which absences pause or break it.
Taking leave
How leave is requested, approved and scheduled by agreement.
Payment & rate
How LSL pay is calculated, including ordinary pay and averaging for variable hours.
Pro-rata & termination
When a pro-rata entitlement is payable on termination and how it is worked out.
What's included in this template
Comprehensive coverage of long service leave requirements
Purpose & scope
Why the policy exists and which employees it applies to.
Policy statement
The organisation's commitment to meeting its long service leave obligations.
State & territory legislation
Reference to the applicable state-based long service leave laws.
Eligibility requirements
The qualifying period of continuous service in each jurisdiction.
Accrual of entitlement
How long service leave builds up and what counts as continuous service.
Taking long service leave
The process for requesting, approving and scheduling leave.
Payment calculations
How long service leave pay is calculated, including the rate of pay.
Pro-rata entitlements
When a pro-rata entitlement applies and how it is calculated.
Payment on termination
What is payable when employment ends in different circumstances.
Record keeping
How long service leave is tracked and documented.
How long service leave works in Australia
Entitlements vary by state and territory — build the differences into your policy
It's state law, not the NES
Long service leave sits outside the National Employment Standards. Each state and territory has its own Act, so qualifying periods (commonly 10 years, with some states allowing access from 7) and accrual rates differ. The NES only preserves certain pre-modern-award LSL terms. Always check the legislation for every state you employ in, and look at any applicable award or enterprise agreement for additional entitlements.
Continuous service is the key test
Entitlements build on a single, unbroken period of service with the same employer. Paid leave generally counts; some unpaid absences may pause but not break service. A business transfer can carry service across to a new owner. Spell out what counts so the accrual is calculated consistently.
What a typical LSL lifecycle looks like
Accrue
Entitlement builds steadily over years of continuous service.
Become eligible
The employee reaches the qualifying period set by their state or territory.
Take leave
Leave is taken by agreement, paid at the employee's ordinary rate.
Pro-rata on exit
A pro-rata amount may be paid out on termination after a minimum period.
Pay LSL at the employee’s ordinary pay; for staff with variable hours, most states require an averaging method over a defined period. Use HR software with leave management to track balances accurately and avoid manual errors.
For the calculation detail — qualifying periods by state, accrual rates and worked examples — see our guide on how to calculate long service leave and on calculating pro-rata leave. State agencies and Fair Work publish current LSL rules, and many states run a long service leave portability scheme for industries like construction and cleaning.
Who should use this template?
Essential for any employer with long-serving employees
Especially useful for multi-state employers, who must apply different long service leave rules across their workforce.
Compliance resources
Official guidance on long service leave entitlements.
Track leave entitlements the easy way
RosterElf helps Australian businesses track leave balances, manage requests and keep accurate records across every state — all connected to your roster and payroll.
Related guides
Calculate and manage leave entitlements correctly
Related templates
Build a complete leave management framework
Long service leave policy FAQ
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Entitlement periods vary by state and territory because long service leave is set by state law, not the National Employment Standards. In most states an employee qualifies after 10 years of continuous service, and some states allow pro-rata access from 7 years. Check the legislation that applies to where your employee works. Our guide on how to calculate long service leave sets out the detail.
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Continuous service is an unbroken period of employment with the same employer. Paid leave generally counts towards it, and some unpaid absences may pause rather than break service. Service can also transfer when a business changes hands. Defining this clearly keeps leave accrual consistent across your team.
Before you download
General information only — not legal advice
This document is a general HR template provided for informational purposes only. It is not legal advice and may not reflect the latest changes in legislation or apply to every workplace situation. RosterElf Pty Ltd and the template provider accept no liability for any loss arising from reliance on this document. Users should seek independent legal advice and customise the template to ensure it complies with all relevant laws, awards and workplace requirements.