Insight · Employment

Long Service Leave in Australia

Published 27 July 2026

Entitlements state by state, how continuous service is counted, and what must be paid out on termination.

In short

Long service leave is paid leave for extended continuous service with one employer, governed by state and territory legislation rather than the National Employment Standards. NSW provides 8.67 weeks after 10 years; Victoria provides one week per 60 weeks of service, accessible after seven years. Pro-rata payment on termination generally starts at five to seven years depending on the state.

Long service leave is one of the few employment entitlements that is not standardised nationally. It sits in state and territory legislation, so the same employee doing the same job accrues different entitlements depending on which state they work in — a real problem for employers with staff across borders.

Entitlements by state and territory

NSW — Long Service Leave Act 1955: 8.67 weeks after 10 years of continuous service, then 4.33 weeks per additional five years. Pro-rata on termination after five years in defined circumstances.
Victoria — Long Service Leave Act 2018: one week for every 60 weeks of continuous service (about 8.67 weeks at 10 years), accessible after seven years, payable on termination after seven years for any reason.
Queensland — Industrial Relations Act 2016: 8.6667 weeks after 10 years, pro-rata after seven years in defined circumstances.
South Australia — 13 weeks after 10 years, pro-rata after seven years.
Western Australia — 8.67 weeks after 10 years, pro-rata after seven years.
Tasmania — 8.67 weeks after 10 years, pro-rata after seven years.
ACT and NT — broadly 6.0667 to 13 weeks depending on the scheme, with pro-rata thresholds of seven and ten years respectively.

Always check the current Act for the state in which the employee is based — rates, thresholds and definitions are amended regularly.

Continuous service — the part that causes disputes

Long service leave accrues on continuous service with one employer. The state Acts define what counts and what breaks continuity. Common issues:

Paid leave and public holidays count. Unpaid parental leave and workers compensation absences usually preserve continuity but may not count toward the period of service.
Casual and part-time service usually counts, calculated on average hours or ordinary pay at the time of taking.
Transfers between related entities in a corporate group generally do not break continuity.
A transfer of business usually carries prior service to the new employer, unlike redundancy pay which can be treated differently.
Resignation and re-hire after a genuine break generally resets the clock, but a short "break" designed to reset entitlements will not be respected.

Portable long service leave schemes

Some industries — building and construction, contract cleaning, community services and coal mining, depending on the state — operate portable schemes where service accrues across employers in the industry. Employers in those sectors must register and pay levies, and non-registration is a live enforcement risk.

What employers get wrong

Applying the wrong state's Act to an interstate employee.
Calculating the payment on base rate when the Act requires ordinary pay including some allowances or averaged hours.
Cashing out long service leave where the Act prohibits it.
Ignoring accrued liabilities in a business sale — long service leave is a real balance-sheet item and should be adjusted at completion.
Failing to keep the records the Acts require, which shifts the evidentiary burden onto the employer in a dispute.

Where this fits in practice

We advise on employment entitlements, contract drafting and the treatment of accrued leave in transactions through our advice and compliance and sales and acquisitions work — on fixed fees.

Frequently asked questions

How much long service leave do employees get?

It depends on the state. In NSW, employees get two months (8.67 weeks) after 10 years of continuous service with the same employer, plus one month for each additional five years. Victoria provides one week for every 60 weeks of continuous service, accessible after seven years. Other states and territories have their own formulas.

When can long service leave be taken?

Generally once the qualifying period is reached — 10 years in NSW, seven in Victoria and Queensland — and at a time agreed between employer and employee. Employers can direct leave to be taken with the required notice under the relevant state Act.

Is long service leave paid out on termination?

Usually yes once the employee has reached the pro-rata threshold — commonly five years in NSW (for resignation due to illness, incapacity, domestic necessity, or termination other than for serious misconduct) and seven years in Victoria for any reason. Below the threshold, no payment is required.

Does a break in employment reset long service leave?

Not automatically. Most Acts preserve continuous service across parental leave, workers compensation absences and periods of authorised leave, and some preserve it across a transfer of business. Short breaks are often disregarded but may not count toward the period of service.

Does long service leave transfer when a business is sold?

In most states, yes. Where employees transfer with the business, their prior service with the seller generally counts toward long service leave with the buyer. This is a frequent adjustment item in the sale price.

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