SA long service leave: entitlements, calculations & compliance 2026

Quick summary for time‑poor owners

If you only skim one section, make it this one:

Who this guide applies to

Most SA workers are covered — but not all

SafeWork SA explains that most workers in South Australia are entitled to long service leave regardless of whether they're full‑time, part‑time, or casual, but not all workers receive their entitlement under the Long Service Leave Act 1987 (SA). Some workers' long service leave is determined under an award/enterprise agreement or another scheme.

If you're unsure, a practical approach is:

• Check whether long service leave for the worker is governed by the SA Act or by a specific award/agreement.
• If it's a dispute and the worker is covered by the SA Act, SafeWork SA can assist; if it's under another Act/award/agreement, you may need Fair Work Ombudsman guidance.

Key SA entitlements at a glance

Standard entitlement (after 10 years)

Pro‑rata (when employment ends between 7 and 10 years)

If a worker terminates employment after 7 years but less than 10, they may be eligible for a pro‑rata payment (a lump sum in lieu of leave).

Pro‑rata is generally calculated as 1.3 weeks for each completed year of service (paid at the worker's ordinary weekly rate immediately before termination).

Weekends and public holidays

In SA, weekends and public holidays are included as days of long service leave if they fall during the leave period.

Continuous service in SA

"Continuous service" is the backbone of long service leave — and it's where mistakes happen.

A simple way to think about it

For each worker, track:

• Start date
• Any weeks that don't count toward service (e.g., approved unpaid leave)
• Any leave already taken
• Any absences due to work injury (which can have special treatment)

Unpaid leave

Unpaid leave that your employer agrees to does not break continuity, but generally does not count as service — meaning the entitlement date moves out.

Casual continuity is real — and often misunderstood

SafeWork SA explains that casual service can still be "continuous" where there is a series of contracts, depending on factors like:

• regularity of engagements
• time between engagements
• reasons for gaps

They also give the example of a café closing each year over a set period (e.g., Christmas shutdown) not necessarily breaking continuity if there's an understanding the work continues.

Leave that counts vs doesn't count

SafeWork SA provides guidance that some absences don't break continuity and do count (e.g., annual leave and long service leave; illness/injury including unpaid sick leave), while "any other kind of leave" may not count.

How to calculate long service leave in South Australia

Below is the calculation approach that matches SafeWork SA's guidance.

Step 1: Confirm what instrument applies

Before you calculate anything:

Is the worker's LSL under the SA Act, or under an award/agreement (or a portable scheme)?

Step 2: Work out the service period that counts

Start with:

• employment start date
• intended leave start date (or termination date)

Then adjust for:

• unpaid leave (generally doesn't count)
• any other non‑service absences

This is why someone may need 10 years + X weeks before becoming eligible.

Step 3: Calculate the entitlement in weeks

If the worker has reached 10 years continuous service

Entitlement =

• 13 weeks for the first 10 years, plus
• 1.3 weeks for each completed year after that

If employment ends between 7 and 10 years

Pro‑rata weeks = 1.3 weeks × completed years of service

Step 4: Subtract any LSL already taken (or cashed out)

If the worker already took some long service leave, or received a payment in lieu by agreement, subtract that from their remaining balance (and keep clear records).

How to calculate long service leave pay

This is where employers most often need a calculator.

Key definition: "ordinary weekly rate of pay"

SafeWork SA defines ordinary weekly rate of pay (for LSL purposes) as the worker's weekly wage excluding penalty rates and overtime. If the worker is acting in a higher paid role when LSL starts, their ordinary weekly rate is the higher rate.

Also: The Act doesn't specifically mention allowances; SafeWork SA notes allowances are generally to cover work expenses, so often aren't payable while on leave (but edge cases exist).

Full‑time calculation (simple case)

If full‑time for at least the previous 3 years:

LSL pay = 13 weeks × ordinary weekly rate of pay

Part‑time calculation

SafeWork SA explains part‑time LSL payment is based on the worker's average hours over the previous 3 years (156 weeks) (including overtime hours for averaging), paid at their current base hourly rate.

In practice:

1. Total hours worked in previous 3 years ÷ 156 = average weekly hours
2. Average weekly hours × current base hourly rate = average weekly pay
3. Multiply by weeks of LSL entitlement (e.g., 13 weeks)

Mix of full‑time and part‑time (common scenario)

If the worker switched between full‑time and part‑time over the last 3 years, SafeWork SA still uses the average weekly hours over the previous 3 years approach.

Casual calculation

SafeWork SA's casual worker calculation is also based on average hours over the previous 3 years (156 weeks). Payment is at the current base hourly rate plus casual loading, and excludes overtime, shift premiums and penalties (even though overtime hours are included in the hours‑averaging step).

Accommodation value (edge case to build into payroll)

If a worker is normally provided accommodation but not while on leave, SafeWork SA notes their LSL pay may need to be increased by the monetary value of that accommodation.

Taking leave, directing leave, and paying leave

Requesting leave (after entitlement arises)

SafeWork SA indicates a worker should request leave as soon as practicable after becoming eligible. Employers can consider operational requirements and negotiate timing, but it's not reasonable to continually deny LSL due to "operational requirements."

Can an employer direct a worker to take long service leave?

Yes — but SafeWork SA states the employer must provide at least 60 days' notice before the period of leave the worker is directed to take.

Can a worker take LSL at half pay?

Yes, but only if the employer agrees — the employer is under no obligation to allow half pay.

How can payments be made during long service leave?

SafeWork SA notes payments can be made:

• as a lump sum in advance,
• on the worker's usual pay day, or
• another way by agreement.

Rate changes during leave

SafeWork SA states LSL must be paid at the worker's rate of pay current at the week the leave is taken; if pay changes during leave, pay must reflect the new rate.

Pro‑rata long service leave when employment ends

Who gets pro‑rata?

SafeWork SA explains pro‑rata is a lump sum in lieu of leave, generally available where the worker:

• has completed 7 years continuous service (but less than 10), and
• has terminated employment.

When pro‑rata is not payable

SafeWork SA states pro‑rata payment is not payable if:

• employment is terminated for serious and wilful misconduct, or
• the worker unlawfully terminates the contract (e.g., failing to give required notice).

When must pro‑rata be paid?

SafeWork SA indicates the employer must pay the entitlement "immediately" on termination (and clarifies that "immediately" can include the next pay day).

Cashing out long service leave in SA

Two separate rules matter:

1) Employer cannot force cash‑out

SafeWork SA states an employer cannot force a worker to accept a cash payment in lieu of taking long service leave; any alternative arrangement must be agreed.

2) After 10 years, cash‑out can be agreed

SafeWork SA states that after ten years' continuous service, a worker and employer can agree to a cash payment in lieu for part or all of an accrued long service leave entitlement (often called "cashing out").

Key compliance requirements SafeWork SA highlights:

• agreement must be in writing and signed by both parties
• signed copy must be given to the worker and kept on the worker's service record
• employer must provide a written statement with entitlement details, payment amount, period covered, and remaining leave (if any)

Tax note: SafeWork SA directs tax questions about lump sums to the ATO.

Transfer of business

If the business changes hands and the worker continues employment, service may be deemed continuous and the new employer takes on long service leave liability — and records should be handed over to the incoming employer.

Record keeping checklist

SafeWork SA requires employers to keep long service leave records:

• throughout the worker's service, and
• for at least 3 years after termination.

At minimum, build records that capture:

• worker name, start date, duties, projected entitlement date
• absences (start/end, reason, whether entitlement date is affected)
• annual LSL snapshots (rate of pay, hours, entitlement, leave taken or paid out)
• termination info and LSL payment details

SafeWork SA also provides record templates/samples for employers who don't have a system.

Common mistakes (and how to avoid them)

Official SA resources

Key government resources for South Australia long service leave compliance:

References

• SafeWork SA long service leave guidance (entitlement, calculation methods, continuous service, public holidays, recordkeeping, payments)
• Fair Work Ombudsman overview of long service leave (state/territory laws and exceptions)
• Law Handbook SA discussion of awards/agreements potentially overriding state LSL laws
• SAET information on long service leave disputes pathways