Victoria long service leave: 7-year eligibility, entitlements & calculator 2026
A simple, practical guide for Victorian employers, payroll teams and people managers
Updated 27 Jan 2026 • Based on the Victorian Long Service Leave Act 2018 (Vic)
Written by
Steve Harris
This guide provides general information only. It does not constitute legal, payroll, accounting, financial, tax, or any other professional advice. You should not act or refrain from acting based on the information in this guide without first obtaining independent professional advice specific to your circumstances.
Long service leave entitlements are complex and can vary significantly depending on:
- whether the worker is covered by Victorian long service leave legislation, a portable long service leave scheme (construction, community services, contract cleaning, security), and/or a federal pre-modern award or workplace agreement;
- the specific terms of any applicable enterprise agreement, individual contract, or workplace policy;
- the worker's employment history, including breaks in service, absences, and changes in employment status;
- recent legislative changes or court/tribunal decisions that may not yet be reflected in this guide.
No liability: RosterElf Pty Ltd, its directors, employees, and authors (including Steve Harris) expressly disclaim any and all liability for any loss, damage, cost, or expense (whether direct, indirect, consequential, or otherwise) arising from or in connection with reliance on the information in this guide. This includes, without limitation, any underpayment claims, penalties, back-pay obligations, or compliance failures.
Not a substitute for professional advice: This guide is not a substitute for advice from a qualified employment lawyer, industrial relations specialist, registered tax agent, or other appropriately qualified professional. If you are unsure about your obligations, you should seek independent professional advice before making any employment or payroll decisions.
Official sources: Always verify information using official government sources including Victorian Government LSL guidance, Portable Long Service Authority, and Fair Work Ombudsman.
Victoria LSL quick summary: 7-year eligibility, accrual rates & compliance
If you only skim one section, make it this:
- In Victoria, most employees become entitled to paid long service leave after 7 years of continuous employment with one employer.
- Long service leave accrues progressively at 1 week for every 60 weeks of continuous employment (≈ 0.866 weeks per year).
- After an employee reaches 7 years, they can generally take their accrued long service leave, and/or be paid out for unused accrued long service leave if employment ends.
- Paying someone extra to "cover" long service leave (for example loading a casual rate) is not how Victoria's long service leave works — and can create legal risk.
- You generally cannot cash out long service leave while employment continues (it can be an offence).
- The official Victorian long service leave calculator can help, but it's still an estimate and should be verified for complex cases.
What's new in 2026: victoria LSL updates
- Superannuation rate: SG rate remains 11.5% for 2024-25 financial year, increasing to 12% from 1 July 2025
- No legislative changes: The Long Service Leave Act 2018 (Vic) remains current with no amendments in 2026
- Penalty units: Check the Victorian Government penalty unit values for current rates (indexed annually)
- Portable schemes: Community Services portable LSL scheme continues to expand coverage
Last verified: January 23, 2026 • This page is reviewed quarterly to ensure accuracy
Victoria vs other states: quick comparison
Understanding how Victoria's LSL compares to other states helps you manage multi-state workforces:
| Feature | Victoria | NSW | QLD |
|---|---|---|---|
| Eligibility | 7 years | 10 years* | 10 years |
| Accrual rate | 1/60 weeks (continuous) | 2 months @10yrs, 1 month @15yrs | 8.6667 weeks @10yrs |
| 10 years = | 8.67 weeks | 8.67 weeks | 8.67 weeks |
| Pro-rata rules | Limited (generally 7 years required) | After 5 years (conditions apply) | After 7 years (conditions apply) |
| Portable schemes | Construction, community services, cleaning, security | Construction, community services, cleaning, security | Building & construction, community services, contract cleaning |
*NSW has portable schemes where 7-year eligibility applies for covered workers. See our NSW long service leave guide and QLD long service leave guide for full details.
Victoria LSL calculator: quick estimate
Use this simple calculator to estimate long service leave accrual. For complex situations (variable hours, unpaid leave, business transfers), use the official Victorian Government LSL calculator.
Calculate LSL accrual
What is long service leave in Victoria?
Long service leave (often shortened to LSL) is a period of paid leave that eligible employees can take after a long period of continuous service with the same employer.
In Victoria, the main rules are set by the Long Service Leave Act 2018 (Vic) and explained in the Victorian Government's comprehensive guide.
Important coverage note (read this first)
This guide is about Victoria's Long Service Leave Act 2018. It may not apply if the worker is covered by:
- Construction industry portable long service leave arrangements (LeavePlus / Construction Industry Long Service Leave Act), or
- The Portable Long Service Benefits Scheme for community services, contract cleaning and security industries, or
- Certain fair work instruments or other legislation that already provides long service leave.
If you're unsure, check the official Victorian calculator terms and/or confirm coverage (and get advice if needed).
Victoria long service leave entitlements explained
Who is covered by long service leave in Victoria?
Most employees in Victoria are covered, including:
- Full-time and part-time employees
- Casual and seasonal employees (with specific continuity rules)
- Many fixed-term ("specified term") arrangements
- Some labour-hire style arrangements (depending on how the Act applies)
Important exceptions / alternatives include portable schemes (construction; and community services/cleaning/security) and some workplace instruments with LSL provisions.
When do you become entitled to long service leave in Victoria?
In Victoria, the key threshold is:
7 years of continuous employment with one employer
After at least seven years, an employee is entitled to:
- take their accrued long service leave; and
- be paid out unused accrued long service leave if employment ends.
If employment ends before seven years, the employee is generally not entitled to a long service leave payment.
How much long service leave do you get in Victoria?
Victoria uses a simple accrual rate:
1 week of LSL for every 60 weeks of continuous employment (≈ 0.866 weeks per year)
| Continuous service | Weeks of LSL accrued (approx.) | Notes |
|---|---|---|
| 7 years | 6.07 weeks | Eligible to take/payout once 7 years reached |
| 10 years | 8.67 weeks | Common benchmark |
| 15 years | 13.00 weeks | Often described as "13 weeks after 15 years" |
| 20 years | 17.33 weeks | Continues accruing |
Reality check: Actual service can be affected by unpaid leave, WorkCover, business transfers, and transitional rules, so use official guidance for anything non-standard.
Continuous employment in victoria (the rule that causes most mistakes)
To qualify, employment must be continuous with the one employer (with specific rules that can treat service as continuous even with certain breaks or changes).
What counts as continuous employment?
Here are practical, employer-friendly summaries of key rules from the Victorian Government guide:
Paid leave
All periods of paid leave count toward the period of continuous employment (e.g., annual leave, paid personal/carer's leave, long service leave itself).
Unpaid leave
Any period of up to 52 weeks' unpaid leave (including unpaid parental leave) counts toward the period of continuous employment and does not break continuous employment.
For unpaid leave longer than 52 weeks, generally only the first 52 weeks counts, unless certain exceptions apply (for example, provided for under an employment agreement/fair work instrument, agreed in writing before the leave, or leave due to illness/injury).
Illness, injury and WorkCover
Any paid or unpaid absence due to illness or injury (including WorkCover absences) can count toward continuous employment (with transitional differences for periods before 1 November 2018).
Re-employment within 12 weeks
If a worker is re-employed within 12 weeks of certain employment endings, service may be deemed continuous.
Business sales, outsourcing and "one employer" deeming
Certain transfers of employment (including some outsourcing/insourcing arrangements) can mean service is treated as continuous with "one employer" for LSL purposes.
Casual and seasonal employees
Casual and seasonal employees can still qualify for LSL, but continuity is assessed differently. Understanding casual conversion is important as it impacts LSL entitlements.
- Employment is generally deemed continuous if there is no absence of more than 12 weeks between two instances of employment.
-
Even where an absence exceeds 12 weeks, continuity can still be maintained in certain circumstances, such as:
- the employer and employee agree before the absence,
- the absence aligns with the terms of engagement,
- the absence is caused by seasonal factors,
- the work is regular/systematic and the employee reasonably expects re-engagement, and
- unpaid parental leave up to 104 weeks for casual/seasonal employees.
Real-world example of casual employment continuity
Situation Details
- • Role: Casual vineyard worker in Yarra Valley
- • Pattern: Works 8 months per year (March-October) during harvest/pruning season
- • Gap: 4-month absence each year (November-February) - off-season
- • Duration: Same pattern for 9 years with same employer
- • Question: Does the 4-month seasonal gap break continuity?
Answer
No, continuity is maintained. The absence exceeds 12 weeks BUT it's caused by seasonal factors and aligns with the nature of the work. This is explicitly contemplated in the Act.
Calculation Breakdown
- ✓ Continuous service: Unbroken for 9 years
- ✓ Working weeks: ~36 weeks/year × 9 years = 324 working weeks
- ✓ LSL accrued: 324 ÷ 60 = 5.4 weeks
- ✓ Eligible: Yes (9 calendar years meets the 7-year threshold)
💡 Key takeaway: At 9 calendar years, Russell is eligible. The calculation of "ordinary pay" would use averaging over the periods Russell actually worked.
How to calculate long service leave in victoria
Victoria's "core" calculation is simple, though for a broader Australia-wide view, see our how to calculate long service leave guide.
LSL (weeks) = total weeks of continuous employment ÷ 60
Then, to calculate a payout amount, you multiply by the employee's ordinary weekly pay for their normal weekly hours (at the time the leave is taken or employment ends).
Step-by-step (practical payroll workflow)
Step 1: Confirm which scheme applies
Before you calculate anything, confirm whether the employee is under:
- the Victorian LSL Act (this guide), or
- a portable scheme (construction / community services / contract cleaning / security), or
- another instrument with LSL provisions.
Step 2: Confirm the continuous employment period
Determine:
- Start date
- End date (leave date or termination date)
- Any relevant breaks/absences that affect what "counts" as continuous employment and what counts toward the period for LSL purposes (especially unpaid leave).
Step 3: Convert service to total weeks
For a simple estimate:
years × 52 + extra weeks (plus consider leap years if precision matters)
Step 4: Calculate the weeks of long service leave accrued
LSL weeks = total service weeks ÷ 60
Step 5: Convert LSL weeks into hours (optional but useful)
Many payroll systems track leave in hours.
A common approach is:
LSL hours = LSL weeks × normal weekly hours
For employees with hours that vary, Victoria uses an averaging approach (see below).
Step 6: Calculate the payment value (if paying out or paying during leave)
Multiply weeks accrued by the employee's ordinary weekly pay for their normal weekly hours at the relevant time.
Worked examples (simple, practical)
These are simplified illustrations — use the Victorian calculator or advice for complex cases.
Example 1: How much LSL after 7 years in Victoria? (full-time)
- Service: 7 years exactly
- Total weeks: 7 × 52 = 364
- LSL weeks: 364 ÷ 60 = 6.07 weeks
- If the employee works 38 hours/week, estimated LSL hours: 6.07 × 38 = 230.5 hours (approx.)
They generally become eligible to take LSL after 7 years.
Example 2: How much LSL for 10 years in Victoria?
- Service: 10 years
- Weeks: 520
- LSL weeks: 520 ÷ 60 = 8.67 weeks
Example 3: LSL payout estimate on termination (after 10 years)
If ordinary weekly pay is $1,200/week, payout estimate:
8.67 × $1,200 = $10,400 (gross, before tax)
Reminder: in Victoria, if employment ends after at least 7 years, payment for unused accrued LSL must be made on the day employment ends. For tax withholding requirements on LSL payouts, see the ATO tax withheld calculator.
What "ordinary pay" means in victoria
This is a big underpayment risk area.
Victoria's long service leave uses a specific "ordinary pay" concept, generally meaning the actual pay received for working normal weekly hours, and it can include the cash value of board/lodging.
What's usually excluded?
Ordinary pay does not normally include:
- allowances
- penalty rates
- occasional overtime
What's included for casuals?
A casual's ordinary rate can include their casual loading, because it's part of the ordinary time rate they actually receive for normal hours.
If hours vary week-to-week (common for casuals/seasonal workers)
Where hours have changed, the employee's normal weekly hours for calculation are the greatest of the average weekly hours over:
- the preceding 52 weeks, or
- the preceding 260 weeks, or
- the entire period of continuous employment,
excluding any period of unpaid leave.
Is superannuation paid on long service leave in Victoria?
Yes. Super must be paid on LSL under the Superannuation Guarantee (SG) rules.
Under the Superannuation Guarantee (SG) legislation, employers must pay superannuation contributions on long service leave payments. LSL payments are considered "ordinary time earnings" (OTE) for super purposes.
What this means in practice:
- Super must be paid at the current SG rate (11.5% as of 2024-25 financial year, increasing to 12% from 1 July 2025)
- Applies to all LSL payments — whether the employee takes LSL as leave or it's paid out on termination
- Paid within normal timeframes — super on LSL should be paid within the quarterly super guarantee deadlines
- Calculated on gross LSL amount — before tax, on the full ordinary time earnings amount
Worked example: super on LSL payout
Calculating LSL payout with superannuation
- Service: 10 years continuous
- LSL accrued: 8.67 weeks (520 ÷ 60)
- Ordinary weekly pay: $1,500
- Gross LSL payout: $13,005
Superannuation Obligation
Super payable (at 11.5%): $13,005 × 11.5% = $1,495.58
💡 From July 2025: Rate increases to 12% = $1,560.60
Common mistake: Forgetting super on LSL payouts
Many employers remember to pay the LSL amount but forget the super contribution. This can trigger superannuation guarantee charge (SGC) penalties from the ATO. Always calculate and pay super on LSL.
For more information, see the ATO's super guarantee guidance and our calculating final pay guide.
Taking long service leave in victoria
Requesting leave
Once entitled, an employee can request to take long service leave, and it can be taken in blocks of not less than one day. Learn more about managing leave requests effectively in your workplace.
If an employee requests long service leave, the employer must grant it as soon as practicable unless there are reasonable business grounds to refuse.
Can an employer direct an employee to take LSL?
Yes — an employer may direct an employee to take long service leave by giving at least 12 weeks' written notice (and the employee can apply to the Magistrates' Court if they dispute it).
Can LSL be taken in advance?
Yes, by agreement — but there's no obligation for an employer to agree, and if the employee leaves before accruing it, the employer may be able to deduct the amount paid from monies payable on termination (subject to the Act's rules).
Public holidays during long service leave
Under the Victorian Act, long service leave does not include public holidays that fall during the period of long service leave.
Practical takeaway: public holidays should generally not reduce the employee's long service leave balance (your payroll/leave system should handle this correctly).
What to do if your employer refuses long service leave
If you've requested LSL after 7 years and your employer has refused without reasonable business grounds, or you're an employer dealing with a dispute, here's the formal pathway:
Employees: Put your LSL request in writing with proposed dates, duration, and any relevant reasons. Keep a copy. Employers: Respond in writing within a reasonable timeframe.
If refusing as an employer, provide written reasons explaining the reasonable business grounds. These might include critical operational needs, planned business activities, or insufficient coverage. Vague refusals may not meet the legal standard.
Before escalating, both parties should try to agree on alternative timing. The Act requires leave be granted "as soon as practicable" — this means finding a workable solution that balances employee entitlement with business needs.
Workforce Inspectorate Victoria (formerly Wage Inspectorate Victoria) can provide guidance, investigate complaints, and facilitate resolution.
- Phone: 1800 287 287
- Website: vic.gov.au/workforce-inspectorate-victoria
- Anonymous reporting available if you're concerned about retaliation
If the dispute cannot be resolved, employees can apply to the Industrial Division of the Magistrates' Court of Victoria. This is also the avenue if an employer directs LSL and the employee disputes it.
Important: Consider seeking legal advice before court proceedings. You may be eligible for Legal Aid Victoria assistance.
Employer note: Adverse action protections
Employers cannot take "adverse action" against employees for requesting or taking LSL. This includes termination, demotion, reduced hours, or other detrimental treatment. Penalties for adverse action can be substantial.
Half pay (double-length long service leave)
In Victoria, long service leave can be taken at half pay by agreement (e.g., 13 weeks accrued could become 26 weeks at half pay). Employers must grant the request unless they have reasonable business grounds to refuse.
How double-length LSL works in practice
Situation
- ⏱️ LSL accrued: 13 weeks after 15 years of service
- 💰 Normal weekly pay: $1,800
- ✈️ Request: Take LSL at half pay for extended overseas travel
Calculation Comparison
Option 1: Full pay
13 weeks × $1,800 = $23,400 total
✓ Option 2: Half pay (Jane's choice)
26 weeks × $900 = $23,400 total
Result
Jane gets 26 weeks off (6 months) instead of 13 weeks (3 months) — double the time for the same total pay!
💡 Perfect for: Extended travel, sabbaticals, or caring responsibilities. The employer must grant this unless reasonable business grounds exist to refuse.
Important: Taking "half the leave at double pay" is NOT permitted (it can breach the cashing-out prohibition). Only "double the leave at half pay" is allowed.
Termination & long service leave payouts in victoria
If employment ends and the employee has at least 7 years continuous employment, they're generally entitled to payment for unused accrued long service leave on the day employment ends (resignation, termination, redundancy, or death). See our guide on calculating final pay including LSL payouts.
If employment ends before 7 years, there is generally no LSL payment entitlement.
Employers can face penalties for failing to pay on termination and other breaches. For dispute resolution, contact Fair Work Ombudsman.
Can you cash out long service leave in Victoria?
Usually no.
In most circumstances, it's an offence to give or receive payment instead of the employee taking the break from work (both employer and employee can be liable).
Payment for unused long service leave generally happens only when employment ends, or in limited situations allowed under certain fair work instruments.
Specialized scenarios: complex LSL situations explained
Beyond the standard full-time employee scenarios, here are common complex situations that require special attention:
Commission-based and variable pay employees
For employees whose pay includes commission, bonuses, or piece-work rates, calculating "ordinary pay" for LSL requires averaging over the relevant periods.
Calculating LSL for variable commission-based pay
Employment Details
- 👔 Role: Retail sales manager
- 💵 Base salary: $60,000 per year ($1,154 per week)
- 📈 Commission: Variable, averaging $25,000 annually over past 5 years
- 📅 Service: 8 years continuous
- ⏱️ LSL accrued: 416 weeks ÷ 60 = 6.93 weeks
Calculation approach
For variable pay, Victoria uses the greatest of the average weekly earnings over the preceding 52 weeks, 260 weeks, or entire period (excluding unpaid leave).
Averaging Calculation
52-week average: $85,000 ÷ 52 = $1,635/week
260-week average: (~5 years) $82,500 ÷ 52 = $1,587/week
Entire period average: $680,000 ÷ 416 weeks = $1,635/week
Final Calculation
Use the greatest: $1,635/week
LSL payout: 6.93 weeks × $1,635 = $11,331 (gross)
Packaged benefits and salary sacrificing
If employees receive a company car, phone, laptop, or other benefits as part of their package, the cash value of board/lodging can be included in ordinary pay calculations.
How to value packaged benefits for LSL calculations
Package Details
- 💰 Base salary: $85,000 per year
- 🚗 Company car: Fully maintained vehicle, FBT value $12,000/year
- 📱 Phone allowance: $1,200/year
- 📅 Service: 10 years
- ⏱️ LSL accrued: 8.67 weeks
Calculation considerations
The Victorian Act includes "board or lodging" in ordinary pay. The exact treatment of modern packaged benefits can be complex—seek advice if the package includes non-cash benefits.
Two Calculation Approaches
Conservative approach
Cash salary only = $85,000 ÷ 52 = $1,635/week
Inclusive approach (if benefits qualify)
($85k + $12k + $1.2k) ÷ 52 = $1,888/week
⚠️ Discuss with your payroll advisor or legal counsel
WorkCover and extended illness/injury absences
Special rules apply when employees are absent due to illness, injury, or WorkCover claims. These absences generally count toward continuous employment but have specific calculation considerations.
LSL continuity during extended injury absence
Timeline
- 📅 Employment start: January 2016
- 🏥 WorkCover injury: June 2019 (back injury)
- ↩️ Return to work: March 2021 (21 months off work)
- 🗓️ Current date: January 2026 (10 years total)
- ❓ Question: Does the WorkCover period count?
Answer: Yes
Under the Victorian Act, absences due to illness or injury (including WorkCover absences) count toward continuous employment. The transitional rules matter: periods before November 1, 2018 follow old Act rules, periods after follow the 2018 Act.
Calculation Result
- ✓ Continuous service: Unbroken (WorkCover absence counts)
- ✓ Total service: 10 years = 520 weeks
- ✓ LSL accrued: 520 ÷ 60 = 8.67 weeks
💡 Important: For calculation of "ordinary weekly pay", the WorkCover period may affect averaging—use the greatest of 52-week, 260-week, or entire period averages excluding unpaid leave.
Business sales and transfers of employment
When a business is sold or employment is transferred (including outsourcing/insourcing), service can be deemed continuous with "one employer" for LSL purposes under certain conditions.
How LSL transfers when a business is sold
Business Transfer Timeline
- ☕ Original owner: Worked for Cafe A from 2017-2023 (6 years)
- 🔄 Business sold: January 2023 - Cafe B (new owner) takes over
- 👔 Continued employment: Same role, same location, new owner
- 📅 Current date: January 2026 (9 years total, 3 years with new owner)
- ❓ Question: Does service carry over?
Answer: Likely Yes
If the transfer meets the Act's "one employer" deeming provisions. The Victorian Act has specific rules for business transfers where employment continues.
Key factors:
- • Employment continues without a break (or very short break)
- • Same or substantially similar work
- • Transfer is a "transmission of business"
Practical Outcome
If deeming applies, Leo's service = 9 years continuous (6 + 3)
LSL entitlement = 7.8 weeks
⚠️ Important for purchasers: The new owner (Cafe B) is responsible for the LSL liability even though most service was with the previous owner.
Business purchaser warning
If you're buying a business, inherited LSL liabilities can be substantial. Always conduct due diligence on employee LSL entitlements and consider indemnities or purchase price adjustments. Get legal and accounting advice before completing the transaction.
Industry-specific examples
Here are practical scenarios for common industries using RosterElf:
Scenario: Maria manages a busy Melbourne restaurant. Started as part-time floor staff (20 hrs/week) in 2017, promoted to full-time manager (45 hrs/week) in 2020.
LSL calculation: Service counts continuously even through role change. Use greatest of 52-week, 260-week, or entire period average. At 9 years (2026), she has ~7.8 weeks LSL accrued.
Scenario: James works at a retail chain since 2016. Took 12 months unpaid parental leave in 2021-2022.
LSL calculation: Up to 52 weeks unpaid leave counts toward continuous employment. His 10 years includes the parental leave period. LSL = 8.67 weeks accrued.
Scenario: Rachel works in aged care since 2015. Sustained shoulder injury in 2022, was on WorkCover for 8 months.
LSL calculation: WorkCover absence counts toward continuous employment. At 11 years (2026), she has ~9.5 weeks LSL. Pay calculation uses averaging periods that may exclude the WorkCover period.
Portable long service leave schemes: when standard victoria LSL rules don't apply
If your workers are in certain industries, they may be covered by a portable long service leave scheme instead of (or in addition to) the standard Victorian Long Service Leave Act 2018.
Industry quick-check
If your business operates in construction, community services, contract cleaning, or security, you likely need to register with a portable scheme and pay levies instead of managing LSL directly.
What is portable long service leave?
Portable LSL allows workers to build entitlements across multiple employers within the same industry. Instead of starting from zero with each new employer, workers accrue LSL through an industry fund.
How it works:
- Employers register workers with the scheme
- Employers pay a levy (percentage of wages) to the scheme quarterly
- Workers build LSL credits that transfer between employers
- Workers claim LSL from the scheme, not individual employers
1. Construction industry (LeavePlus)
Scheme operator: CoINVEST Limited (trading as LeavePlus)
Legislation: Construction Industry Long Service Leave Act 1997 (Vic)
Website: leaveplus.com.au
Who's covered:
- Building and construction workers
- Apprentices in construction trades
- Self-employed contractors (can opt-in)
- Labor hire workers in construction
Key details:
- Eligibility: 60 days worked in the industry (from July 2025, reducing to 60 days)
- Accrual: 1 credit per day worked (260 credits ≈ 1 year)
- Can claim: After 1,300 credits (approximately 5 years)
- Employer levy: Variable rate based on worker type (check LeavePlus portal for current rates)
- Quarterly returns: Due 28 days after quarter end (Jan, Apr, Jul, Oct)
Important: Employers must register within 7 days of employing an eligible worker and submit quarterly returns even if no workers employed that quarter.
2. Community services, contract cleaning, security (Portable long service Authority)
Scheme operator: Portable Long Service Authority (PLSA)
Legislation: Long Service Benefits Portability Act 2018 (Vic)
Website: plsa.vic.gov.au
Community Services Industry
Who's covered:
- Disability support workers
- Youth services workers
- Family violence support workers
- Homelessness services workers
- Community health workers (specific roles)
- Mental health community workers
Key details:
- Eligibility: Registered from first day of employment
- Can claim: After 7 years of recognised service (1,825 days)
- Accrual rate: 1.3 weeks per year (based on 260 working days)
- Employer levy: 3% of ordinary wages (as of 2025-26)
- Quarterly returns: Due within 30 days of quarter end
Contract Cleaning Industry
Who's covered:
- Commercial office cleaners
- Shopping center cleaners
- Industrial cleaning workers
- Window cleaners (commercial)
- Supervisors in contract cleaning
Key details:
- Can claim: After 7 years (1,825 days)
- Employer levy: 3% of ordinary wages
- Registration threshold: First day of eligible work
Security Industry
Who's covered:
- Security guards (static and mobile)
- Crowd controllers
- Cash-in-transit workers
- Control room operators
- Security patrol workers
Key details:
- Can claim: After 7 years (1,825 days)
- Employer levy: 3% of ordinary wages
- Registration threshold: First day of eligible work
Employer obligations under portable schemes
1. Register your business
Register with the relevant scheme (LeavePlus or PLSA) before employing covered workers. You'll receive an employer number.
2. Register eligible workers
Within 7-14 days of employment (varies by scheme), register each eligible worker with their personal details.
3. Track days/hours worked
Maintain accurate records of days or hours worked by covered employees. Use your time and attendance system to track this automatically.
4. Calculate levy amount quarterly
Levy = ordinary wages paid to covered workers × levy rate (typically 3%). Include all ordinary time earnings.
5. Submit quarterly returns and pay levies
Lodge returns and pay levies via the scheme's online portal within 28-30 days of quarter end. Late payments incur penalties.
6. Provide worker statements
When employment ends, provide a final statement to the worker showing days/hours worked and levies paid.
Penalties for non-compliance
Failing to register, pay levies, or submit returns can result in penalties, interest charges, and enforcement action. Both schemes conduct audits and can pursue unpaid levies through courts. Read about payroll reconciliation to ensure your portable scheme obligations are met.
For detailed guidance, visit Business Victoria's portable LSL information.
Employer compliance plan
A simple, practical process you can follow:
LSL Act vs portable scheme vs enterprise agreement/pre-modern instrument.
Record start date, employment changes (business sale/outsourcing), and relevant absences (paid/unpaid, illness/injury). Use our timesheet approval guide to track hours accurately.
Don't accidentally include (or exclude) items incorrectly. Our payroll integration can help automate LSL calculations.
Document requests, decisions, and reasons if refusing on reasonable business grounds.
Build your final-pay checklist so unused LSL is paid on the day employment ends where applicable.
Employers must keep accurate LSL records during employment and retain them for at least 7 years after employment ceases.
Common mistakes (and how to avoid them)
Not how it works in Victoria. The Victorian guide notes casual rates can't be loaded to compensate for non-payment of LSL.
Generally unlawful and can be an offence.
Missing the 12-week rule and exceptions can cause over/under calculations.
Victoria uses the greatest of the relevant averages.
The Victorian guide treats failure to pay on termination as an offence and outlines penalties.
The Victorian guide lists record-keeping obligations and penalties.
Downloadable resources for victoria LSL compliance
Use these free templates and checklists to streamline your long service leave management:
LSL calculation worksheet
Fillable PDF with fields for dates, hours, and absences. Includes formula reference and space for notes.
Coming soon
Employer compliance checklist
20-item checklist covering registration, tracking, calculation, and record-keeping obligations.
Coming soon
Letter template pack
3 customizable templates: LSL request letter, employer direction letter, and half-pay agreement letter.
Coming soon
Long service leave policy
Comprehensive policy template covering eligibility, requesting leave, and termination payouts.
View template →Portable scheme quick reference
One-page guide to registration, levy rates, and quarterly return deadlines for all Victorian portable schemes.
Coming soon
RosterElf LSL tracking
Learn how RosterElf automatically tracks hours and integrates with payroll for seamless LSL accrual management.
Payroll integration →Want these templates sent to your inbox?
We're creating a comprehensive Victoria LSL compliance toolkit. Sign up to be notified when templates are available.
Get notified →Sources & official help
- Victorian Government — long service leave overview and comprehensive guide
- Business Victoria — official calculator (estimate-only)
- Portable Long Service Authority (community services, contract cleaning, security)
- LeavePlus (construction)
Regulator note: Workforce Inspectorate Victoria is the current regulator for LSL compliance (previously known as Wage Inspectorate Victoria).
Other state guides
Victoria long service leave FAQ
- Under Victoria's accrual rate (1 week per 60 weeks), a simple estimate for 7 years (364 weeks) is about 6.07 weeks of accrued long service leave. Eligibility to take leave generally begins after 7 years of continuous employment.
- A simple estimate for 10 years is about 8.67 weeks (520 ÷ 60).
- In Victoria, about 8.67 weeks based on the 1 week per 60 weeks formula.
- At 15 years, employees would have accrued approximately 13 weeks of long service leave (780 ÷ 60). Victoria uses a continuous accrual rate throughout employment.
- In Victoria, employees become entitled to take and be paid out long service leave after 7 years of continuous employment. This is different from some other states like NSW (10 years under the general Act). The Victorian Long Service Leave Act 2018 sets the threshold at 7 years, with leave accruing at 1 week per 60 weeks throughout employment.
- No, you don't lose it. If you resign after completing 7 years of continuous employment, you're entitled to payment for all unused accrued long service leave on your last day. However, if you resign before reaching 7 years, you generally forfeit any accrued LSL (Victoria doesn't have the same pro-rata provisions as some other states).
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Other employment law guides
Explore other state-based guides for long service leave, workers' compensation, and payroll tax
SA Long Service Leave
13 weeks after 10 years, pro-rata at 7 years, payment calculations
QLD Long Service Leave
10-year entitlement, 7-year pro-rata, QLeave portable schemes
Victoria Workers' Compensation
WorkCover claims, weekly payments (PIAWE), treatment expenses
SA Workers' Compensation
ReturnToWorkSA claims, income support, return to work planning
NSW Payroll Tax
$1.2M threshold, 5.45% rate, grouping rules, monthly compliance
Victoria Payroll Tax
$3M threshold, 4.85% rate, regional rate (1.2125%), surcharges