Long Service Leave in Queensland: Entitlements and Calculations

Queensland’s long service leave (LSL) framework is governed by the Industrial Relations Act 2016, which consolidates workplace entitlements for employees in the state’s industrial relations system. For employers, understanding Queensland’s LSL rules is essential — the entitlements are substantial, the pro rata thresholds are earlier than many expect, and the financial liability can be significant.

This guide walks through every aspect of long service leave in Queensland: who qualifies, how much they’re entitled to, when pro rata access kicks in, how to calculate payments, and what happens on termination.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Employment law is complex and subject to change. Consult a qualified employment lawyer or the Queensland Industrial Relations Commission for guidance specific to your organisation.

Who Is Covered by Queensland’s LSL Laws?

Queensland’s long service leave provisions under the Industrial Relations Act 2016 apply to employees who fall within the state’s industrial relations jurisdiction. This primarily includes:

• Employees of sole traders, partnerships, and unincorporated associations operating in Queensland
• Employees of state and local government bodies
• Some employees in the community services sector

Employees of nationally incorporated companies (Pty Ltd) are generally covered by the federal industrial relations system. However, there is no comprehensive federal long service leave standard under the Fair Work Act 2009 — the NES does not prescribe LSL. In practice, most federal system employees in Queensland will still rely on the state Act or their applicable enterprise agreement for LSL entitlements.

Always check your applicable award or enterprise agreement first, as it may contain specific LSL provisions.

Qualifying Period

In Queensland, employees become entitled to long service leave after 10 years of continuous service with the same employer.

This aligns with NSW and is shorter than Victoria’s 15-year threshold, making Queensland one of the more accessible states for LSL entitlements.

What Counts as Continuous Service?

Continuous service in Queensland includes:

• All periods of paid leave (annual leave, personal leave, paid parental leave)
• Periods of authorised unpaid leave (subject to the limits in the Act)
• Absences due to illness or injury, including workers’ compensation
• Periods of stand-down
• Any interruption or break that does not constitute a termination of employment

Continuous service is not broken by:

• Authorised absences, whether paid or unpaid (within permitted limits)
• Transmission of business, where the employee continues working for the new employer

Continuous service is broken by:

• Termination of employment (resignation, dismissal, redundancy) — unless re-employed within a short period and the employer agrees to recognise prior service
• Unauthorised absences that are treated as abandonment of employment

Casual Employees

Casual employees in Queensland can qualify for long service leave if they have been employed on a regular and systematic basis for the qualifying period. The assessment looks at the overall pattern of engagement — frequency, regularity, and whether there was a reasonable expectation of ongoing work.

If a casual has worked regularly for 10 years, they are likely entitled to LSL.

Entitlement Amount

The standard LSL entitlement in Queensland is 8.6667 weeks of leave after 10 years of continuous service.

After the initial 10 years, additional LSL accrues at the rate of 8.6667 weeks for every subsequent 10 years of service. This is equivalent to approximately 0.8667 weeks per year of service.

Years of Service	LSL Entitlement
10 years	8.6667 weeks
15 years	13 weeks
20 years	17.3333 weeks
25 years	21.6667 weeks
30 years	26 weeks

These figures represent the total accrued entitlement, calculated on a cumulative basis.

Pro Rata Access After 7 Years

Queensland provides pro rata access to long service leave for employees whose employment ends after at least 7 years of continuous service.

This is a critical threshold for employers. Any employee who has passed 7 years of service will be entitled to a proportional LSL payout if their employment ends — whether by resignation, redundancy, dismissal, or death.

How Pro Rata Is Calculated

The pro rata formula is:

Pro rata LSL = (Years of service ÷ 10) × 8.6667 weeks

Example: An employee who resigns after 8 years of continuous service:

• (8 ÷ 10) × 8.6667 = 6.9333 weeks of LSL pay

Example: An employee who is made redundant after 7 years:

• (7 ÷ 10) × 8.6667 = 6.0667 weeks of LSL pay

Exceptions to Pro Rata

Pro rata entitlements are not available if:

• The employee has less than 7 years of continuous service
• The employee is dismissed for serious misconduct (and has less than 10 years of service)

If the employee has reached 10 or more years of service, they are entitled to their full accrued LSL regardless of the reason for termination, including misconduct.

Payment Calculations

Long service leave in Queensland must be paid at the employee’s ordinary rate of pay at the time the leave is taken or paid out.

What Constitutes Ordinary Pay?

Ordinary pay in Queensland includes:

• Base salary or wages
• Regular allowances (e.g., shift allowances, tool of trade allowances) that form part of the employee’s normal remuneration
• The value of board or lodging provided as part of the remuneration package

It does not include:

• Overtime payments
• Irregular bonuses or one-off payments
• Expense reimbursements

Calculation Examples

Full-time employee earning $90,000 per year:

• Weekly rate: $90,000 ÷ 52 = $1,730.77
• LSL entitlement after 10 years: 8.6667 weeks
• Total LSL value: $1,730.77 × 8.6667 = $14,999.99

Part-time employee working 20 hours per week at $38/hour:

• Weekly earnings: 20 × $38 = $760
• LSL entitlement after 10 years: 8.6667 weeks
• Total LSL value: $760 × 8.6667 = $6,586.67

Pro rata payout for an employee earning $80,000/year who resigns after 9 years:

• Weekly rate: $80,000 ÷ 52 = $1,538.46
• Pro rata LSL: (9 ÷ 10) × 8.6667 = 7.8 weeks
• Total payout: $1,538.46 × 7.8 = $12,000

Taking Long Service Leave

In Queensland, employees who have reached their full 10-year entitlement can take long service leave. The key rules are:

• Leave must be taken in a continuous block of at least one week, unless the employer and employee agree to shorter periods
• The employee must give reasonable notice before taking leave
• The employer and employee should agree on the timing, but the employer cannot unreasonably refuse a request
• Leave can be taken at half pay for double the period (e.g., 8.6667 weeks at full pay becomes 17.3333 weeks at half pay), if agreed between the parties

Can an Employer Direct an Employee to Take LSL?

In general, employers cannot direct employees to take long service leave. However, if an employee has an excessive accrued balance and has been given reasonable opportunity to take the leave, some awards and enterprise agreements may provide mechanisms for the employer to direct the employee to take a portion of their LSL.

Breaks in Service

Understanding what constitutes a break in service is crucial for calculating LSL correctly in Queensland.

Authorised Absences

Authorised absences — whether paid or unpaid — do not break continuity of service. However, extended unpaid leave may not count as service for accrual purposes, even though it preserves continuity.

For example, an employee who takes 6 months of unpaid parental leave will still have continuous service, but those 6 months may not count towards the 10-year qualifying period (depending on the terms of the leave and the applicable award or agreement).

Resignation and Re-employment

If an employee resigns and is later re-employed by the same employer, the prior period of service generally does not count towards LSL unless:

• The employer expressly agrees to recognise the prior service, or
• The break was very short and there was an understanding of continued employment

This is important when rehiring former employees — always clarify whether prior service will be recognised.

Transmission of Business

When a business is sold, transferred, or restructured and an employee continues working for the new employer, the employee’s prior service counts towards their LSL entitlement. The new employer inherits the LSL liability.

Portability

Queensland does not have a general portability scheme for long service leave. Employees cannot carry their LSL entitlements from one employer to another in most industries.

However, there are industry-specific portable LSL schemes, most notably:

• Building and construction — administered by QLeave
• Community services — administered by QLeave
• Contract cleaning — administered by QLeave

In these industries, employers must register with QLeave and make regular levy payments. Workers accumulate service credits across multiple employers within the industry, and can claim their LSL entitlement from QLeave once they qualify.

If you operate in one of these sectors, you have separate registration, reporting, and payment obligations to QLeave.

Interaction with Termination

Resignation After 10+ Years

Full accrued LSL must be paid out at the employee’s ordinary rate of pay.

Resignation After 7–10 Years

A pro rata payment is owed, calculated based on years of service.

Resignation Before 7 Years

No LSL entitlement. Any accrued LSL is forfeited.

Redundancy

All LSL entitlements — whether full or pro rata (from 7 years) — must be paid out as part of the final pay.

Dismissal for Serious Misconduct

Employees with 10+ years of service retain their full LSL entitlement even if dismissed for misconduct. Employees with 7–10 years lose their pro rata entitlement if dismissed for serious misconduct.

Death of an Employee

Accrued LSL is paid to the employee’s estate or nominated beneficiary.

Record-Keeping Obligations

Queensland employers must maintain accurate records of:

• Employee start dates and employment history
• All periods of service, including breaks, unpaid leave, and authorised absences
• LSL taken (dates, duration, and payment amounts)
• LSL payouts on termination

Records must be kept for at least 6 years after the relevant period. Failure to maintain adequate records can result in penalties and may shift the burden of proof to the employer in any dispute.

Common Compliance Mistakes

1. Missing the 7-Year Pro Rata Threshold

Many employers are unaware that Queensland employees who leave after 7 years are entitled to a pro rata LSL payout. This is one of the most common errors in final pay calculations.

2. Failing to Track Casual Employee Service

Regular and systematic casuals can qualify for LSL. If you engage casuals on an ongoing basis, track their service carefully.

3. Applying the Wrong Pay Rate

LSL must be paid at the current ordinary rate of pay — not the historical rate. Pay increases over the qualifying period increase the LSL liability.

4. Not Accounting for Transmission of Business

If you’ve acquired a business, the transferring employees’ prior service counts. Factor this into your LSL liability calculations.

5. Inadequate Record-Keeping

Without comprehensive records spanning a decade or more, accurate LSL calculations are nearly impossible. Invest in robust tracking systems.

Managing LSL Compliance in Queensland

Tracking long service leave across a workforce with varying start dates, employment types, and service histories is inherently complex. Manual tracking with spreadsheets increases the risk of errors, missed thresholds, and incorrect payouts.

Leave management software that supports Australian LSL rules can automate accrual calculations, flag approaching milestones (7-year and 10-year thresholds), and generate accurate payout figures for termination scenarios. This is particularly important for businesses with high staff turnover or large casual workforces.

Key Takeaways for Queensland Employers

• Employees are entitled to 8.6667 weeks of LSL after 10 years of continuous service
• Pro rata access applies from 7 years on termination
• LSL is paid at the ordinary rate of pay at the time of taking or payout
• Serious misconduct removes pro rata entitlements for employees with 7–10 years of service only
• Portability applies in construction, community services, and contract cleaning (via QLeave)
• Maintain comprehensive records for at least 6 years
• Track casual employees’ service carefully — they may qualify

Queensland’s LSL rules are clear but carry significant financial implications. Staying on top of entitlements, maintaining accurate records, and using purpose-built software to manage leave are the best ways to ensure compliance and avoid costly disputes.