Long Service Leave in Western Australia: Employer's Guide

Western Australia’s long service leave framework is governed by the Long Service Leave Act 1958 (WA), one of the oldest pieces of employment legislation still in operation across Australia. While the Act has been amended over the decades, its core structure remains largely intact — and it differs from other states in several important ways that employers need to understand.

Whether you manage a small team in Perth or a large workforce spread across regional WA, long service leave (LSL) represents a significant financial liability. The state’s rules around pro rata access are notably more restrictive than those in Victoria, New South Wales, or Queensland, which means termination payouts and compliance obligations require careful attention.

This guide covers everything you need to know about LSL in Western Australia — from qualifying periods and entitlement calculations to pro rata restrictions, payment calculations, portability in the construction industry, and common compliance mistakes.

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 Department of Mines, Industry Regulation and Safety (DMIRS) for guidance specific to your organisation.

What Is Long Service Leave?

Long service leave is a period of paid leave granted to employees who have completed a lengthy period of continuous service with the same employer. It recognises employee loyalty and provides an extended break after years of sustained employment. In Western Australia, the entitlement is a statutory right under the Long Service Leave Act 1958, and it cannot be contracted out of or reduced by an employment agreement.

Unlike annual leave or personal leave, LSL accrues over a much longer timeframe and typically results in a substantial financial obligation for employers. Understanding the specific WA rules is critical, as they differ meaningfully from the national trend.

Who Is Covered?

The Long Service Leave Act 1958 applies to employees in Western Australia who are not covered by a federal award or enterprise agreement that contains its own LSL provisions. In practice, this means:

• Employees of sole traders, partnerships, and unincorporated entities are typically covered by the WA Act
• Employees of incorporated companies (Pty Ltd) are generally covered by the relevant federal award or the National Employment Standards (NES)

However, the NES does not contain a comprehensive long service leave entitlement — it simply preserves existing state and territory LSL laws. This means the WA Act remains the primary source of LSL entitlements for most employees in the state, unless their award or enterprise agreement specifies otherwise. Always check the applicable modern award or agreement first.

Qualifying Period

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

This aligns with New South Wales and Queensland but is shorter than Victoria’s 15-year qualifying period. However, as we will explore in the pro rata section below, WA’s rules around early access are considerably more restrictive than those other states.

Continuous Service in Western Australia

Continuous service includes:

• All periods of paid leave (annual leave, personal leave, paid parental leave)
• Periods of absence due to illness or injury, including workers’ compensation
• Authorised unpaid leave (within the limits permitted by the Act)
• Periods of stand-down where the employment relationship is preserved

Continuous service is not broken by:

• Authorised absences (even if unpaid, provided they fall within the limits of the Act)
• Transmission of business (if the business is sold and the employee continues working for the new owner)

Continuous service is broken by:

• Unauthorised absences
• Resignation followed by re-employment (unless the employer agrees in writing to recognise prior service)
• Termination and subsequent rehiring, unless continuity is expressly preserved

Casual Employees

Casual employees in WA can qualify for long service leave, but only if they can demonstrate a pattern of regular and systematic engagement over the qualifying period. Intermittent or irregular casual work is unlikely to meet the threshold. The key test is whether the casual employee has been employed on a sufficiently regular basis that the engagement is, in substance, continuous.

This can be a contentious area. Employers who engage long-term casuals should review their arrangements to determine whether an LSL obligation may be accruing, even if neither party has formally acknowledged it.

Entitlement Amount

The standard LSL entitlement in Western Australia is 8.6667 weeks of leave for each 10-year period of continuous service. This equates 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

How Does This Compare to Other States?

Western Australia’s entitlement rate is consistent with NSW and Queensland at 8.6667 weeks per 10 years. However, other states offer different structures:

• South Australia: 13 weeks after 10 years (the most generous rate)
• Victoria: 13 weeks after 15 years, then 8.6667 weeks per additional 10 years
• NSW: 8.6667 weeks after 10 years (same rate as WA)
• Queensland: 8.6667 weeks after 10 years (same rate as WA)

Where WA stands apart is not in the entitlement amount but in how restrictively it treats pro rata access, as outlined below.

Pro Rata Access — WA Is More Restrictive Than Most States

This is one of the most important distinctions for employers operating in Western Australia. The pro rata rules under the Long Service Leave Act 1958 are significantly more restrictive than those in most other Australian states.

Pro Rata After 7 Years — Limited Circumstances Only

An employee who has completed at least 7 years of continuous service (but less than 10 years) may receive a pro rata LSL payment, but only if their employment ends due to one of the following reasons:

1. Death of the employee — the entitlement is paid to the employee’s estate or personal representative
2. Termination by the employer — but not if the termination is for serious misconduct
3. Termination by the employee due to illness, incapacity, or domestic pressing necessity — the employee must demonstrate a genuine reason that compels them to leave

This means that in WA, an employee who voluntarily resigns after 7 or more years (but before 10 years) for ordinary reasons — such as accepting a new role, relocating for personal preference, or simply wanting a change — receives no pro rata LSL payment. This is a stark contrast to states like Victoria, NSW, and Queensland, where pro rata entitlements are available on termination for any reason after 7 years of service.

What Counts as “Domestic Pressing Necessity”?

The term “domestic pressing necessity” is not exhaustively defined in the Act, but it generally covers situations where the employee has no reasonable alternative but to leave employment. Examples may include:

• Caring for a seriously ill family member
• Relocating due to a spouse’s or partner’s employment transfer
• Escaping domestic violence

The burden falls on the employee to demonstrate that the resignation was genuinely compelled by pressing circumstances rather than being a matter of personal choice.

What Counts as “Serious Misconduct”?

If an employer terminates an employee for serious misconduct before the employee reaches 10 years of service, no pro rata LSL is payable. Serious misconduct typically includes:

• Theft, fraud, or dishonesty
• Wilful disobedience of a lawful and reasonable instruction
• Conduct that causes serious and imminent risk to health or safety
• Conduct fundamentally inconsistent with the continuation of the employment relationship

Employers should ensure that any termination characterised as being for serious misconduct is well documented and legally defensible, as an employee may dispute the characterisation to claim their pro rata entitlement.

After 10 Years — Full Entitlement Regardless of Reason

Once an employee has completed 10 or more years of continuous service, they are entitled to the full accrued LSL balance regardless of how their employment ends. This includes voluntary resignation, redundancy, dismissal (even for misconduct), retirement, or death.

Payment Calculations

LSL in Western Australia is paid at the employee’s ordinary rate of pay at the time the leave is taken or paid out.

Defining Ordinary Pay

Ordinary pay under the WA Act generally includes:

• Base salary or wages
• Regular allowances that form part of the employee’s ongoing remuneration
• Shift loadings where the employee regularly works shifts as part of their normal pattern

It does not typically include:

• Overtime payments
• Reimbursements for expenses
• Irregular or one-off bonuses
• Commissions (unless they form a regular, predictable component of remuneration)

As with other states, the precise definition can depend on the terms of any applicable award or enterprise agreement. Employers should take care to identify all components of an employee’s regular remuneration when calculating LSL payments.

Calculation Examples

Full-time employee earning $90,000 per year (base salary plus regular allowances):

• Weekly rate: $90,000 / 52 = $1,730.77
• LSL entitlement after 10 years: 8.6667 weeks
• Total LSL value: $1,730.77 x 8.6667 = $14,999.97

Part-time employee working 24 hours per week at $38/hour:

• Weekly earnings: 24 x $38 = $912
• LSL entitlement after 10 years: 8.6667 weeks
• Total LSL value: $912 x 8.6667 = $7,904.03

Pro rata payout for an employee terminated by the employer (not for serious misconduct) after 8 years on a salary of $85,000:

• Weekly rate: $85,000 / 52 = $1,634.62
• Pro rata LSL: (8 / 10) x 8.6667 = 6.9333 weeks
• Total payout: $1,634.62 x 6.9333 = $11,333.16

Taking Long Service Leave

Under the WA Act, the rules for taking long service leave are less flexible than some of the more recently reformed state laws:

• The employee and employer should agree on when the leave will be taken
• The employer can direct the employee to take their LSL by giving at least 12 weeks’ written notice
• The employee may request to take LSL, and the employer should not unreasonably refuse
• Leave is generally expected to be taken as a continuous block, though shorter periods may be agreed between the parties

Unlike Victoria’s 2018 reforms, which explicitly allow leave to be taken in blocks as short as one day by agreement, the WA Act does not contain the same express statutory flexibility. In practice, many WA employers and employees do agree to shorter blocks, but this should be documented in writing.

Can LSL Be Taken at Half Pay?

The Act does not expressly provide for taking LSL at half pay for double the duration. However, some awards, enterprise agreements, or employer policies may allow this arrangement. Where it is permitted, the total cost to the employer remains the same — only the duration and rate of payment change.

Portability — The MyLeave Scheme for Construction

Western Australia operates a portable long service leave scheme for the construction industry, administered by MyLeave (the Construction Industry Long Service Leave Payments Board).

How MyLeave Works

1. Employers in the WA construction industry must register with MyLeave
2. Employers make regular levy contributions based on their workers’ ordinary pay
3. Workers accumulate service credits across multiple employers within the construction industry
4. When a worker reaches the qualifying period, they can claim their LSL entitlement directly from MyLeave
5. The worker’s service is fully portable across employers within the WA construction industry

Who Must Register?

Any employer who engages workers in “construction work” as defined by the Construction Industry Portable Paid Long Service Leave Act 1985 must register with MyLeave. This includes builders, subcontractors, and labour hire firms supplying workers to construction sites.

Penalties for Non-Compliance

Failure to register with MyLeave or to make the required levy payments can result in significant penalties. MyLeave conducts compliance audits and can pursue employers for unpaid levies plus interest.

General Portability

Outside of the construction industry, WA does not have general portability of long service leave. If an employee moves to a new employer in a non-covered industry, their LSL clock resets to zero. This is consistent with most other states, though some (such as Victoria) have expanded portability to community services, contract cleaning, and security sectors.

Transmission of Business

If a business is sold, transferred, or restructured and employees continue working for the new owner, their prior service counts towards LSL entitlements under the WA Act. The new employer inherits the LSL liability.

This has important implications for mergers, acquisitions, and business sales. The purchase price or terms of sale should account for the accrued LSL liability of all transferring employees, particularly those who are approaching or have passed the 7-year or 10-year thresholds.

Breaks in Service

A break in service does not automatically mean the employee loses their accrued LSL credits. The key questions are:

• Was the absence authorised? If so, continuity is preserved, though the period may not count as service for accrual purposes depending on the type of absence
• Was the break a resignation and re-employment? If so, prior service generally does not count unless the employer agrees in writing to recognise it
• Was there a transmission of business? If so, service carries over automatically

Employers should document all breaks in service carefully and maintain clear records of whether prior service is being recognised. Given that LSL accrues over 7 to 10 years, accurate records from the start of employment are essential.

Interaction with Termination

Resignation After 10+ Years

The employee receives the full accrued LSL balance, paid at their current ordinary rate. The reason for resignation does not matter.

Resignation After 7-10 Years (Voluntary, No Special Circumstances)

No LSL entitlement. This is where WA differs most sharply from other states. A voluntary resignation for ordinary reasons between 7 and 10 years of service does not trigger a pro rata payout.

Resignation After 7-10 Years (Due to Illness, Incapacity, or Domestic Pressing Necessity)

The employee receives a pro rata payment based on years of service.

Resignation Before 7 Years

No LSL entitlement. The employee forfeits any accrued LSL.

Termination by Employer After 7+ Years (Not for Serious Misconduct)

The employee receives a pro rata payment (if between 7 and 10 years) or the full accrued balance (if 10+ years).

Dismissal for Serious Misconduct

If the employee has 10+ years of service, they still receive their full accrued LSL entitlement. If they have 7-10 years, the pro rata entitlement is forfeited because the termination is for serious misconduct.

Redundancy

All LSL entitlements — full (10+ years) or pro rata (7-10 years) — must be paid out. Redundancy is a termination by the employer that is not for serious misconduct, so it triggers the pro rata provision.

Death of an Employee

Any accrued LSL (full or pro rata from 7 years) is paid to the employee’s estate or personal representative.

Record-Keeping and Compliance

Employers in Western Australia must maintain accurate records of:

• Each employee’s start date and full service history
• Any periods that affect continuity or accrual (parental leave, unpaid leave, workers’ compensation, etc.)
• LSL taken and the dates and duration of each period
• Payments made for LSL, including the rate of pay used in calculations
• The reason for any termination where pro rata LSL is or is not paid (given the restricted pro rata rules, documenting the reason is especially important in WA)

The Department of Mines, Industry Regulation and Safety (DMIRS) oversees compliance with the Long Service Leave Act 1958. DMIRS can investigate complaints, conduct audits, and take enforcement action against non-compliant employers. Penalties for failing to meet LSL obligations can include fines and orders to pay outstanding entitlements.

Common Compliance Mistakes

1. Assuming Pro Rata Applies on All Terminations After 7 Years

This is the most common mistake employers make in WA. Many HR professionals and payroll officers are familiar with the rules in Victoria, NSW, or Queensland — where pro rata applies broadly after 7 years — and assume the same applies in WA. It does not. In Western Australia, pro rata access between 7 and 10 years is available only in the limited circumstances described above (death, employer-initiated termination not for serious misconduct, or employee resignation due to illness/incapacity/domestic pressing necessity).

2. Failing to Document the Reason for Termination

Because the reason for termination directly affects whether pro rata LSL is payable, employers must keep clear records. If an employee disputes the characterisation of their termination — for example, arguing they were forced out rather than resigning voluntarily — the employer’s records will be critical evidence.

3. Underestimating Ordinary Pay

Regular allowances, shift loadings, and ongoing bonus payments may need to be included in the LSL pay calculation. Using only the base salary can result in underpayment, which exposes the employer to compliance action and back-payment claims.

4. Not Registering with MyLeave (Construction Industry)

Employers in the construction industry who fail to register with MyLeave and make levy contributions face penalties and back-payment liabilities. This obligation applies from the first day a worker is engaged in construction work.

5. Poor Long-Term Record-Keeping

LSL accrues over a decade or more. Employers who do not maintain accurate, long-term records of service history, breaks, and leave taken will struggle to calculate entitlements correctly when the time comes. Investing in proper systems from the outset is far less costly than trying to reconstruct records years later.

Key Takeaways for Western Australian Employers

• Employees are entitled to 8.6667 weeks of LSL after 10 years of continuous service
• Pro rata access between 7 and 10 years is available only in limited circumstances (death, employer-initiated termination not for serious misconduct, or employee resignation due to illness/incapacity/domestic pressing necessity)
• Voluntary resignation between 7 and 10 years for ordinary reasons does not trigger a pro rata payout — this is more restrictive than most other states
• The Act is the Long Service Leave Act 1958 (WA), one of the oldest LSL statutes in Australia
• Portability applies in the construction industry via the MyLeave scheme
• LSL is paid at the ordinary rate of pay, which may include regular allowances and shift loadings
• Documenting the reason for termination is especially important in WA due to the restricted pro rata rules
• Accurate, long-term record-keeping is essential for compliance

Long service leave is a significant and growing financial liability. With qualifying periods of 7 to 10 years and restrictive pro rata rules that differ from other states, WA employers face unique compliance challenges. Using dedicated leave management software to track entitlements, flag approaching milestones, and calculate payouts accurately is the best way to protect your organisation from compliance risk and ensure employees receive their correct entitlements.