What is long service leave?

Long service leave (LSL) is a period of paid leave granted to employees who have worked for the same employer (or in the same industry under portable schemes) for an extended period, typically 10 years in most states. It's a uniquely Australian entitlement designed to reward long-term service and allow employees to take an extended break.

Is long service leave a federal or state entitlement?

Long service leave is primarily governed by state and territory legislation, not federal law. This means the rules can vary significantly depending on which state or territory your business operates in. Some employees may also have LSL entitlements under pre-modern federal awards or enterprise agreements.

How much long service leave are employees entitled to?

Entitlements vary by state. In NSW, employees generally receive 2 months (8.6667 weeks) after 10 years of continuous service. Other states have different thresholds and amounts. Some portable schemes (like construction or community services) allow earlier access after 7 years of industry service.

Do casual employees get long service leave?

Yes, casual employees can be entitled to long service leave in most states, provided they meet the service requirements. The calculation of their entitlement typically considers their average hours worked over the employment period, and their ordinary pay rate includes the casual loading.

What happens to long service leave when an employee resigns?

In most states, employees who resign before completing the full entitlement period (usually 10 years) may be entitled to pro-rata LSL payment if they've completed a minimum period (often 5 years) and the reason for leaving meets certain criteria, such as illness, domestic necessity, or circumstances other than serious misconduct.

Why do long service leave rules differ between states?

Long service leave is governed by state and territory legislation, not federal law. Each state has enacted its own LSL Act with different entitlement periods, accrual rates, and conditions. This historical approach means employers operating across multiple states must understand and apply different rules depending on where employees are based.

Which state's long service leave rules apply to my employees?

Generally, the LSL legislation that applies is based on where the employee usually performs their work, not where the employer is headquartered. For employees who work across multiple states, determining which law applies can be complex and may require professional advice.

What are portable long service leave schemes?

Portable schemes allow workers in certain industries (such as construction, cleaning, and community services) to accumulate long service leave across multiple employers within that industry. Instead of needing 10 years with one employer, workers can claim LSL after accumulating enough service across any employers in the scheme.

Does long service leave transfer if I sell my business?

In most states, when a business is sold and employees continue working in that business, their long service leave entitlements transfer to the new owner. The previous owner's records must be provided to the new employer, who becomes responsible for the accrued entitlements.

What records must I keep for long service leave?

Employers must keep detailed records including start dates, any breaks in service, LSL taken (dates and amounts paid), and termination details. In NSW, LSL records must be kept for at least 6 years after employment ends. Records must be transferred to successor employers when businesses are sold.

How do I calculate long service leave pay?

LSL is generally paid at the employee's ordinary rate of pay. For employees with variable hours (including casuals), you typically use the greater of recent pay rates or an average over 5 years. The specific calculation method varies by state, so always check the relevant legislation.

Can employees cash out long service leave?

Long service leave is generally intended to be taken as leave. Rules about cashing out vary by state and may depend on whether an enterprise agreement allows it. In most cases, LSL is paid out on termination if the employee has met the eligibility requirements.

What happens if I underpay long service leave?

Underpaying LSL can result in back-pay claims going back many years, penalties from state industrial tribunals, and reputational damage. Given the long service periods involved, errors can compound significantly. Accurate record-keeping and regular audits are essential to avoid underpayment.

EMPLOYMENT LAW GUIDES

Australian Employment law guides by state 2026

Simple, practical guides to workers' compensation, long service leave, entitlements, and workplace compliance across Australia

12 State Guides Free & Up-to-Date Award Compliant

Employment law in Australia varies by state and territory. These plain-English guides help employers understand workers' compensation, long service leave entitlements, portable schemes, and compliance obligations in each jurisdiction.

State-based legislation: Employment law in Australia is governed by a combination of federal and state/territory legislation. Long service leave, workers' compensation, and payroll tax are primarily state-based, with rules that can vary significantly depending on where your employees work or your business operates. Always confirm the applicable legislation for your specific circumstances.

Workers' compensation by state

Workers' Compensation Victoria

WIRC Act 2013

How WorkCover works, making claims, weekly payments (PIAWE), treatment expenses, mental injury claims, and employer obligations

VictoriaWorkers CompWorkCoverClaims

Read the guide

Workers' Compensation SA

Return to Work Act 2014 (SA)

Complete SA workers' compensation guide: ReturnToWorkSA system, claim process, weekly payments (100% then 80%), medical expenses, return to work obligations, and employer compliance checklist

South AustraliaWorkers CompReturnToWorkSAClaims

Read the guide

Workers' Compensation QLD

Workers' Compensation and Rehabilitation Act 2003 (Qld)

Complete QLD workers' compensation guide: WorkCover Queensland system, claim process, weekly payments, medical expenses, and employer obligations

QueenslandWorkers CompWorkCover QLDClaims

Read the guide

More state guides coming soon: NSW, QLD, SA, TAS, ACT, NT

Payroll tax by state

NSW Payroll Tax Thresholds

Payroll Tax Act 2007 (NSW)

NSW payroll tax threshold $1.2M for 2025–26, rate 5.45%. Monthly thresholds, registration rules, grouping/interstate examples, and compliance checklist

New South WalesPayroll TaxThresholdsRevenue NSW

Read the guide

Victoria Payroll Tax Guide

Payroll Tax Act 2007 (Vic)

Complete Victoria payroll tax guide: $3M threshold, 4.85% rate, regional rate (1.2125%), surcharges, grouping rules, and employer compliance checklist

VictoriaPayroll TaxSRORegional Rate

Read the guide

WA Payroll Tax Thresholds

Pay-roll Tax Assessment Act 2002 (WA)

WA payroll tax threshold $1M for 2025–26, rate 5.5%, diminishing threshold to $7.5M. Registration rules, grouping examples, and employer compliance checklist

Western AustraliaPayroll TaxThresholdsRevenue WA

Read the guide

More state guides coming soon: QLD, SA, WA, TAS, ACT, NT

Long service leave by state

NSW Long Service Leave Guide

Long Service Leave Act 1955 (NSW)

Complete guide to NSW long service leave entitlements, 2 months after 10 years, pro-rata rules after 5 years, portable schemes for building and community services, and compliance obligations.

New South Wales10-Year Entitlement5-Year Pro-Rata

Read the guide

Victoria Long Service Leave Guide

Long Service Leave Act 2018 (Vic)

Complete guide to Victoria long service leave eligibility, entitlements, calculations, portable schemes for construction, cleaning and community services, and compliance obligations.

Victoria7-Year EntitlementPortable Schemes

Read the guide

QLD Long Service Leave Guide

Industrial Relations Act 2016 (Queensland)

Complete guide to Queensland long service leave entitlements, 7-year pro-rata rules, portable schemes (QLeave) for building, cleaning and community services, and compliance obligations.

Queensland10-Year EntitlementQLeave7-Year Pro-Rata

Read the guide

SA Long Service Leave Guide

Long Service Leave Act 1987 (SA)

Complete guide to South Australia long service leave entitlements, 13 weeks after 10 years, pro-rata rules, payment calculations for casual and part-time workers, and record keeping requirements.

South Australia10-Year Entitlement13 Weeks7-Year Pro-Rata

Read the guide

WA Long Service Leave Guide

Long Service Leave Act 1958 (WA)

Complete guide to WA long service leave entitlements, 8.6667 weeks after 10 years, pro-rata rules after 7 years, payment calculations, and employer compliance obligations.

Western Australia10-Year Entitlement7-Year Pro-Rata

Read the guide

More state guides coming soon: Tasmania, ACT, Northern Territory

What's included in each guide

Entitlement thresholds

Clear breakdown of when employees become entitled to long service leave in each state.

Pro-rata rules

Understand when pro-rata entitlements apply on termination and resignation.

Casual employees

Guidance on long service leave for casuals including hours calculations.

Record keeping

What records you must keep and for how long to stay compliant.

Payment calculations

How to calculate long service leave pay including ordinary remuneration.

Compliance checklists

Step-by-step checklists to help you manage LSL obligations.

Disclaimer: These guides provide general information only and do not constitute legal advice. Employment law entitlements and obligations can vary based on individual circumstances, applicable legislation, enterprise agreements, industry-specific schemes, and pre-modern awards. Always confirm your specific obligations using official government resources or seek professional advice before making employment decisions.

Need help managing compliance?

RosterElf automates award compliance, leave tracking, and payroll integration—so you can focus on running your business instead of calculating entitlements.

Free Tools

$0 forever

Perfect for quick calculations and one-off tasks

14 free tools
No signup required
Instant browser access
Basic calculators & estimators
Save & sync rosters
Award interpretation
Payroll integration
Team management

Continue reading guides

Full Suite

Rostering, payroll & HR in one

$7.00 AUD

per employee per month
+ GST, billed annually

Save 30%

Payroll & HR tools in one system

Smart rostering & availability
Time & attendance (GPS & photo)
Award interpretation & penalties
Payroll export (Xero & MYOB)
HR Hub with employee profiles
Digital onboarding & contracts
Policies, certificates & compliance tracking
Payroll sync with employee records
Workwise AI compliance assistant
Central document storage & management
Leave management with approvals

Start free trial

No credit card required · 15-day free trial

View full pricing details See all features

FAQ

Frequently asked questions

Long service leave (LSL) is a period of paid leave granted to employees who have worked for the same employer (or in the same industry under portable schemes) for an extended period, typically 10 years in most states. It's a uniquely Australian entitlement designed to reward long-term service and allow employees to take an extended break.
Long service leave is primarily governed by state and territory legislation, not federal law. This means the rules can vary significantly depending on which state or territory your business operates in. Some employees may also have LSL entitlements under pre-modern federal awards or enterprise agreements.
Entitlements vary by state. In NSW, employees generally receive 2 months (8.6667 weeks) after 10 years of continuous service. Other states have different thresholds and amounts. Some portable schemes (like construction or community services) allow earlier access after 7 years of industry service.
Yes, casual employees can be entitled to long service leave in most states, provided they meet the service requirements. The calculation of their entitlement typically considers their average hours worked over the employment period, and their ordinary pay rate includes the casual loading.
In most states, employees who resign before completing the full entitlement period (usually 10 years) may be entitled to pro-rata LSL payment if they've completed a minimum period (often 5 years) and the reason for leaving meets certain criteria, such as illness, domestic necessity, or circumstances other than serious misconduct.