Question 1

What is long service leave?

Accepted Answer

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.

Question 2

Is long service leave a federal or state entitlement?

Accepted Answer

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.

Question 3

How much long service leave are employees entitled to?

Accepted Answer

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.

Question 4

Do casual employees get long service leave?

Accepted Answer

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.

Question 5

What happens to long service leave when an employee resigns?

Accepted Answer

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.

Question 6

Why do long service leave rules differ between states?

Accepted Answer

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.

Question 7

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

Accepted Answer

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.

Question 8

What are portable long service leave schemes?

Accepted Answer

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.

Question 9

Does long service leave transfer if I sell my business?

Accepted Answer

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.

Question 10

What records must I keep for long service leave?

Accepted Answer

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.

Question 11

How do I calculate long service leave pay?

Accepted Answer

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.

Question 12

Can employees cash out long service leave?

Accepted Answer

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.

Question 13

What happens if I underpay long service leave?

Accepted Answer

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.

Long service leave by state: NSW, VIC, QLD & SA guides 2026

Long service leave by state

NSW Long Service Leave Guide

Victoria Long Service Leave Guide

QLD Long Service Leave Guide

SA Long Service Leave Guide

What's included in each guide

Entitlement thresholds

Pro-rata rules

Casual employees

Record keeping

Payment calculations

Compliance checklists

Frequently asked questions

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