Victoria long service leave: 7-year eligibility, entitlements & calculator 2026

Victoria LSL quick summary: 7-year eligibility, accrual rates & compliance

If you only skim one section, make it this:

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)

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:

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:

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.

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.

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:

Step 4: Calculate the weeks of long service leave accrued

Step 5: Convert LSL weeks into hours (optional but useful)

Many payroll systems track leave in hours.

A common approach is:

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:

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

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.

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).

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.

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.

Can you cash out long service leave in Victoria?

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.

Portable long service leave schemes (when victoria LSL act calculations aren't the right tool)

Construction industry (LeavePlus)

Construction has a separate portable scheme under Victoria's construction legislation and LeavePlus scheme rules.

Community services, contract cleaning, security (Portable long service benefits Scheme)

Victoria's portable scheme covers these industries and is administered by the Portable Long Service Authority.

Business Victoria also outlines registration, quarterly returns, and levy rates for covered employers. Read about payroll reconciliation for portable scheme levies.

Employer compliance plan

A simple, practical process you can follow:

Common mistakes (and how to avoid them)

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)

Other state guides

• NSW long service leave guide
• QLD long service leave guide
• View all employment law guides