Long Service Leave in Australia: A State-by-State Guide for 2026

Long service leave is one of the most misunderstood employee entitlements in Australia. Unlike annual leave, which is governed by a single federal law (the Fair Work Act 2009), long service leave is regulated at the state and territory level — meaning the rules change depending on where your employees are based. The qualifying period, the amount of leave, pro-rata eligibility, and even the governing legislation differ from one jurisdiction to the next.

For employers operating across multiple states, this creates a compliance minefield. Get it wrong, and you could face underpayment claims, Fair Work complaints, or penalties from state regulators. This guide breaks down the long service leave rules for every Australian state and territory, so you can manage entitlements with confidence.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an employment lawyer for guidance specific to your organisation.

What Is Long Service Leave?

Long service leave is a period of paid leave granted to an employee after a long period of continuous service with a single employer. It is a statutory entitlement in all Australian states and territories, though the specific rules vary by jurisdiction.

A Uniquely Australian Entitlement

Long service leave is largely unique to Australia (and, to a lesser extent, New Zealand). It is not a standard entitlement in the United Kingdom, the United States, or most other countries. The concept originated in the 1860s, when colonial governments in Australia granted public servants extended leave so they could travel back to Britain after years of service. Over time, the entitlement was extended to private-sector employees through state legislation.

Key Features

• Paid leave: Employees receive their ordinary rate of pay while on long service leave.
• Continuous service requirement: Most states require between 7 and 10 years of continuous service before the entitlement vests.
• Pro-rata entitlements: In most jurisdictions, employees who leave after a minimum period (usually 5 or 7 years) are entitled to a pro-rata payment.
• State-level legislation: There is no single federal long service leave law. Each state and territory has its own Act, with different qualifying periods, leave amounts, and pro-rata rules.
• Interaction with awards and agreements: Some modern awards and enterprise agreements provide more generous long service leave than the statutory minimum.

State-by-State Breakdown

Below is a detailed breakdown of long service leave entitlements across all eight Australian states and territories. Pay close attention to the qualifying period and pro-rata rules, as these are the areas where employer mistakes are most common.

New South Wales

• Entitlement: 2 months (8.67 weeks) after 10 years of continuous service
• Accrual rate: 0.8667 weeks per year of service
• Pro-rata: Available after 5 years if employment ends for any reason other than serious misconduct (including resignation, redundancy, death, or incapacity)
• Governing legislation: Long Service Leave Act 1955 (NSW)
• Key note: NSW has one of the most employee-friendly pro-rata thresholds in the country — just 5 years of service, regardless of the reason for termination (provided it is not serious misconduct). Employers must pay out the pro-rata entitlement on termination.

Victoria

• Entitlement: 8.67 weeks (60.83 days) after 7 years of continuous service
• Accrual rate: 1.238 weeks per year of service
• Pro-rata: Available after 7 years (the qualifying period and pro-rata threshold are the same)
• Governing legislation: Long Service Leave Act 2018 (Vic)
• Key note: Victoria is the most employee-friendly state when it comes to the qualifying period. Employees become entitled to long service leave after just 7 years — 3 years earlier than in most other jurisdictions. The 2018 Act also clarified rules around parental leave, community service leave, and the impact of family violence leave on continuous service.

Queensland

• Entitlement: 8.67 weeks after 10 years of continuous service
• Accrual rate: 0.8667 weeks per year of service
• Pro-rata: Available after 7 years if employment ends due to death, illness, incapacity, retrenchment, or domestic or other pressing necessity
• Governing legislation: Industrial Relations Act 2016 (Qld), Part 3
• Key note: Queensland’s pro-rata rules are more restrictive than NSW or Victoria. The employee must have completed at least 7 years of service, and the termination must be for one of the specified reasons. Voluntary resignation after 7 years does not automatically trigger a pro-rata payment unless an award or agreement provides otherwise.

South Australia

• Entitlement: 13 weeks after 10 years of continuous service
• Accrual rate: 1.3 weeks per year of service
• Pro-rata: Available after 7 years
• Governing legislation: Long Service Leave Act 1987 (SA)
• Key note: South Australia provides the most generous quantum of long service leave in the country — 13 weeks (approximately 3 months), compared to 8.67 weeks in most other states. This makes SA a particularly important jurisdiction for employers to track correctly, as the financial liability is significantly higher.

Western Australia

• Entitlement: 8.67 weeks after 10 years of continuous service
• Accrual rate: 0.8667 weeks per year of service
• Pro-rata: Available after 7 years (the reason for termination may affect eligibility — check the Act for specific conditions)
• Governing legislation: Long Service Leave Act 1958 (WA)
• Key note: Western Australia’s long service leave laws are among the oldest in the country. The 1958 Act has been amended several times, but the core entitlement structure remains largely unchanged. Employers should be aware that some industrial agreements in WA provide for more generous entitlements, particularly in the mining and resources sector.

Tasmania

• Entitlement: 8.67 weeks after 10 years of continuous service
• Accrual rate: 0.8667 weeks per year of service
• Pro-rata: Available after 7 years
• Governing legislation: Long Service Leave Act 1976 (Tas)
• Key note: Tasmania’s long service leave framework is relatively straightforward and aligns closely with the standard 8.67 weeks after 10 years model used by most states. Employers operating in Tasmania should ensure they are tracking continuous service correctly, particularly for employees who have had breaks in service or periods of unpaid leave.

Northern Territory

• Entitlement: 13 weeks after 10 years of continuous service
• Accrual rate: 1.3 weeks per year of service
• Pro-rata: Available after 7 years
• Governing legislation: Long Service Leave provisions in the Employment Act 1980 (NT)
• Key note: The Northern Territory matches South Australia for the most generous long service leave entitlement in the country — 13 weeks after 10 years. This is worth noting for employers with staff in remote or regional areas of the NT, where employee retention is often a challenge and long service leave can be a significant benefit.

Australian Capital Territory

• Entitlement: 6.07 weeks (42.5 days) after 7 years of continuous service
• Additional accrual: 4.34 weeks for each subsequent 5 years of service
• Pro-rata: Available after 5 years
• Governing legislation: Long Service Leave Act 1976 (ACT)
• Key note: The ACT has a unique structure. The initial entitlement after 7 years is lower than most states (6.07 weeks vs. 8.67 weeks), but additional leave accrues at 4.34 weeks for every subsequent 5-year period. The ACT also has one of the most generous pro-rata thresholds — just 5 years, matching NSW. Employers need to track both the initial and ongoing accrual rates separately.

Summary Comparison Table

State/Territory	Qualifying Period	Entitlement	Pro-Rata From	Governing Legislation
New South Wales	10 years	8.67 weeks	5 years	Long Service Leave Act 1955
Victoria	7 years	8.67 weeks	7 years	Long Service Leave Act 2018
Queensland	10 years	8.67 weeks	7 years*	Industrial Relations Act 2016
South Australia	10 years	13 weeks	7 years	Long Service Leave Act 1987
Western Australia	10 years	8.67 weeks	7 years	Long Service Leave Act 1958
Tasmania	10 years	8.67 weeks	7 years	Long Service Leave Act 1976
Northern Territory	10 years	13 weeks	7 years	Employment Act 1980
ACT	7 years	6.07 weeks	5 years	Long Service Leave Act 1976

Queensland pro-rata is only available for specific termination reasons (death, illness, incapacity, retrenchment, or domestic necessity).

How Long Service Leave Is Calculated

Understanding the entitlement is only half the picture. Employers also need to know how to calculate the leave correctly — and what counts (or does not count) toward continuous service.

Accrual Method

In most states, long service leave accrues at a rate of roughly 1 week per year of service (the exact rate varies — see the state-by-state breakdown above). For a standard accrual rate of 8.67 weeks over 10 years:

• 8.67 weeks ÷ 520 weeks (10 years) = 0.0167 weeks per week worked
• Or about 1.52 hours per week for a 38-hour full-time employee

In South Australia and the Northern Territory, where the entitlement is 13 weeks over 10 years:

• 13 weeks ÷ 520 weeks = 0.025 weeks per week worked
• Or about 1.85 hours per week for a 38-hour full-time employee

Accrual starts from day one of employment, even though the employee cannot access the leave until the qualifying period is reached. An employee with 5 years of service has already accrued roughly half their initial long service leave entitlement — they simply cannot take it yet.

What Counts as Continuous Service?

In most states, continuous service includes:

• Paid leave: Annual leave, personal/carer’s leave, long service leave itself, and other forms of paid leave all count toward continuous service.
• Unpaid parental leave: Generally counts toward continuous service in most jurisdictions, though the leave period may not accrue additional long service leave.
• Public holidays: Count toward continuous service.
• Workers’ compensation periods: Typically count toward service, though the rules vary by state.

What Does Not Count?

• Unpaid leave (other than parental leave): In most states, periods of unpaid leave do not count toward the service period. However, they may not break continuity — the clock pauses rather than resets.
• Unauthorised absences: Extended unauthorised absences may break continuity of service, depending on the jurisdiction and the circumstances.

Employer Transfers and Restructures

If a business is sold, restructured, or transferred, the employee’s continuous service generally carries over to the new employer. This is a critical point for mergers and acquisitions — the acquiring business inherits the long service leave liability. Under the Fair Work Act 2009, a “transfer of business” preserves service continuity for the purposes of all leave entitlements, including long service leave.

Payment Calculation

Long service leave is paid at the employee’s ordinary rate of pay at the time the leave is taken (or at the time of termination, if the entitlement is being paid out). This includes:

• Base salary or hourly rate
• Regular allowances and loadings (if they are part of the employee’s ordinary pay)
• Shift penalties (in some jurisdictions, if they are a regular component of pay)

It does not typically include overtime, bonuses, or irregular payments.

Leave Loading

Some states and awards provide an additional leave loading on top of the ordinary rate of pay when long service leave is taken. Queensland is the most notable example:

• Queensland: A 17.5% leave loading is common in many industries, meaning the employee’s long service leave payment is calculated at their ordinary rate multiplied by 1.175.
• Other states: Leave loading on long service leave is not automatic — it depends on the applicable award or enterprise agreement. South Australia, the ACT, and the Northern Territory generally do not apply an automatic loading, but always check your specific award.

Payment Calculation Example

Employee based in Queensland (13-week entitlement, SA/NT rate):

• Ordinary rate: $50/hour
• Hours per week: 38
• Weekly pay: $50 × 38 = $1,900
• With 17.5% loading: $1,900 × 1.175 = $2,232.50/week
• For 13 weeks of long service leave: $2,232.50 × 13 = $29,022.50

Always confirm whether leave loading applies under the relevant award before calculating the final payment.

Taking Long Service Leave

Timing of Leave

Long service leave is generally taken by mutual agreement between the employee and the employer. In practice, the employee requests specific dates and the employer approves (or proposes alternative dates). Some key points:

• By mutual agreement: This is the standard approach in all states. The employee and employer agree on the timing and duration of the leave.
• Employer direction: In some states, employers can direct an employee to take long service leave, provided they give reasonable notice and have a legitimate operational reason. This is particularly relevant when an employee has accumulated a large balance.
• Pro-rata for shorter service: Employees who leave before the qualifying period may receive a pro-rata payout in some states (see the termination section below), but they cannot generally take the leave during employment until the qualifying period is met.

Notice Requirements

Most states require a reasonable notice period before long service leave is taken. The typical expectation is at least 4 weeks’ notice from the employee requesting leave. Employers who wish to defer leave must have a genuine operational reason, and they cannot unreasonably refuse access to an entitlement that has already vested.

Splitting Leave

Most states allow long service leave to be taken in separate periods by agreement — for example, an employee might take 4 weeks, return to work, then take the remaining balance later. Some points to keep in mind:

• Agreement required: Both parties generally need to agree to split the leave rather than taking it as a single block.
• Minimum periods: Some awards or agreements set a minimum period for each block (e.g., no less than 1 week at a time).
• Half-pay option: In some jurisdictions, employees can take long service leave at half pay for double the duration — taking 26 weeks at half pay instead of 13 weeks at full pay, for example. This requires employer agreement.

Termination and Long Service Leave

Payment on Termination

When employment ends, any accrued long service leave must be paid out. The rules depend on how long the employee has been with the employer:

After the qualifying period (7 or 10 years, depending on the state): All accrued and untaken long service leave is paid out at the employee’s ordinary rate of pay, regardless of the reason for termination.

Before the qualifying period (pro-rata):

• NSW: Pro-rata available after 5 years if termination is for any reason other than serious misconduct.
• Victoria: Pro-rata available after 7 years (the qualifying period and pro-rata threshold are the same).
• Queensland: Pro-rata after 7 years, but only for specific reasons — death, illness, incapacity, retrenchment, or domestic necessity. Voluntary resignation does not automatically qualify.
• South Australia: Pro-rata after 7 years.
• Western Australia: Pro-rata after 7 years (reason for termination may affect eligibility — check the Act).
• Tasmania: Pro-rata after 7 years.
• Northern Territory: Pro-rata after 7 years.
• ACT: Pro-rata after 5 years.

Always check the specific legislation and applicable award, as the rules around what triggers a pro-rata payment differ between states.

Death of an Employee

If an employee dies while employed, all accrued long service leave (including pro-rata entitlements where applicable) is paid to the employee’s estate as a death benefit. This applies across all states and territories.

Part-Time Employees

Long service leave accrues on a pro-rata basis for part-time employees, based on their ordinary hours of work compared to a full-time employee.

Calculation Formula

Entitlement = Full-time entitlement × (ordinary hours per week ÷ full-time hours per week)

Example

A part-time employee working 20 hours per week in South Australia (where full-time is 38 hours):

• Full-time entitlement: 13 weeks after 10 years
• Pro-rata entitlement: 13 × (20 ÷ 38) = 6.84 weeks of long service leave after 10 years

The same principle applies to payment calculations — the employee’s weekly pay is based on their part-time hours, and long service leave is paid at that rate.

For employees who have changed between part-time and full-time during their service, most states calculate the entitlement based on the average ordinary hours worked over the qualifying period.

Managing Excess Long Service Leave

When an employee accumulates a large long service leave balance — typically more than 20 to 30 weeks — it creates a growing financial liability on the employer’s books and may indicate that the employee is not taking the breaks they are entitled to. Here is a practical approach:

1. Encourage: Start by encouraging the employee to take their long service leave. Frame it as a benefit, not an obligation.
2. Negotiate: If encouragement does not work, negotiate a mutually agreeable plan to reduce the balance — for example, scheduling leave in blocks over the coming year.
3. Direct: In some states, employers can direct an employee to take long service leave with reasonable notice. This is typically a last resort and must comply with any notice requirements in the legislation or the relevant award.
4. Seek legal advice: If the balance continues to grow and the employee is unwilling to take leave, seek legal advice on your options under the applicable state legislation.

Record Keeping

Employers are legally required to maintain accurate records of long service leave for every employee. At a minimum, you should track:

• Service start date and continuous service calculation
• Long service leave balance and ongoing accrual
• Dates of long service leave taken
• Amounts paid (including any leave loading)
• Changes in employment status (e.g., part-time to full-time conversions that affect accrual)

Records should be retained for at least 3 years after the employee’s employment ends, though 5 years is recommended as a buffer against late claims or disputes. Some states may require longer retention periods — check your jurisdiction’s requirements.

Industry-Specific Portable Long Service Leave Schemes

One of the most important exceptions to the standard long service leave framework is the existence of portable long service leave schemes. These schemes allow employees in certain industries to accumulate long service leave entitlements across multiple employers, rather than starting from zero each time they change jobs.

How Portable Schemes Work

• Employers in covered industries pay a levy (typically a percentage of payroll) into a state-run fund.
• The fund tracks each worker’s service across all employers in the industry.
• When a worker reaches the qualifying period (calculated across all employers), they can claim long service leave from the fund.

Industries Covered

Portable schemes exist in several industries, though coverage varies by state:

• Building and construction: All states and territories have portable long service leave for construction workers.
• Contract cleaning: Covered in NSW, Queensland, and the ACT.
• Community services: Covered in NSW, Queensland, South Australia, and the ACT.
• Security industry: Covered in some states.

State Boards

Each state has its own portable long service leave board or authority that administers the scheme, collects levies, and processes claims. Employers in covered industries must register with the relevant board and make regular levy payments. Failure to register or pay levies can result in significant penalties.

Common Employer Mistakes

Long service leave compliance is an area where even experienced HR teams make errors. Here are the most common mistakes we see:

1. Not Tracking Long Service Leave From Day One

Many employers only start tracking long service leave when an employee approaches the qualifying period. By then, it is too late to reconstruct an accurate service history. Long service leave accrual should be tracked from the employee’s first day of service.

2. Applying the Wrong State’s Rules

For employers with staff in multiple states, it is easy to accidentally apply the wrong jurisdiction’s rules. An employee based in Victoria becomes entitled to long service leave after 7 years — but the same employee in NSW would need to wait 10 years (though they would get pro-rata after 5). The governing legislation depends on where the employee is based, not where the employer is headquartered.

3. Not Paying Out Pro-Rata Entitlements on Termination

In most states, employees who have completed the minimum pro-rata service period are entitled to a pro-rata long service leave payment when their employment ends. Failing to pay this out is a common cause of underpayment claims and Fair Work complaints.

4. Forgetting to Account for Casual Service

In some states, casual employees who convert to permanent employment may be able to count their casual service toward long service leave. Victoria’s Long Service Leave Act 2018, for example, includes provisions for recognising prior casual service. Employers who ignore this risk understating the employee’s entitlement.

5. Underestimating the Financial Liability

Long service leave represents a significant financial liability on the balance sheet, particularly for employers with a stable, long-tenured workforce. In South Australia and the Northern Territory, the liability is 13 weeks of pay per employee after 10 years — equivalent to a quarter of a year’s salary. Employers should provision for this liability from the outset and review it annually.

How Leave Balance Helps

Tracking long service leave manually is a recipe for compliance errors, especially if you operate across multiple states. Leave Balance tracks long service leave accrual alongside annual leave, personal/carer’s leave, and any other leave type you need. You can configure separate policies for each state, set different qualifying periods and accrual rates, and let the system calculate pro-rata entitlements automatically. Plans start at AUD $29/month with unlimited employees and unlimited policies.