Long service leave (LSL) in Australia is regulated primarily by state and territory legislation rather than the federal Fair Work Act, although pre-modernised federal awards also cover some employees. Most jurisdictions provide around two months of paid leave after roughly ten years of continuous service with one employer, with pro-rata access from seven years in many cases.

Statutory entitlement

Varies by jurisdiction. Common pattern: 8.6667 weeks (about two months) of paid leave after 10 years of continuous service, with pro-rata payment on termination after 7 years (5 years in some jurisdictions). Some industries — construction, contract cleaning, security — operate portable LSL schemes.

Eligibility

Employees with continuous service with the same employer (or, in portable schemes, in the same industry). Specific service thresholds vary by state and territory.

Employer obligations

  • Accrue LSL in line with the relevant state or territory legislation from the first day of employment.
  • Pay LSL at the employee's ordinary rate of pay at the time of taking the leave (or termination).
  • Pay pro-rata LSL on termination where the employee meets the minimum service threshold under the applicable Act.
  • For employers in portable industries (construction, cleaning, security in some states), register with and contribute to the relevant portable LSL scheme.

Employee rights

  • Right to take LSL by agreement with the employer once the qualifying period is met.
  • Right to pro-rata payment in defined termination scenarios (varies by jurisdiction; commonly available after 7 years for resignation in NSW and Vic).
  • Right to keep accrued LSL when changing employers within an industry covered by a portable scheme.

Common pitfalls

  • Applying federal Fair Work rules instead of the relevant state Act.
  • Forgetting that LSL service is generally calculated as continuous service, including most paid leave but excluding certain unpaid leave.
  • Missing pro-rata termination obligations for employees with more than seven years of service.
  • Failing to register for portable LSL schemes when operating in covered industries.

Why LSL varies by state

Long service leave predates the federal industrial relations system and remains a state-and-territory responsibility. As a result, the qualifying period, accrual rate, definition of continuous service, pro-rata termination rights, and casual inclusion all differ between jurisdictions. Always check the Act of the state or territory in which the employee is engaged.

Portable schemes

In industries with high mobility — construction, contract cleaning, security in several states — portable LSL schemes allow service to accumulate across employers. Employers register with the scheme and contribute on behalf of workers, who can take LSL once they meet the industry-wide threshold.

Frequently asked questions

How much long service leave do I get after 10 years?

In most Australian jurisdictions, ten years of continuous service entitles an employee to approximately 8.6667 weeks of paid leave (around two months). Check the Act for your state or territory for the exact entitlement.

Is long service leave paid out on resignation?

Pro-rata payment on resignation is available in some jurisdictions (commonly after 7 years in NSW and Victoria). Other states have different thresholds or restrict pro-rata payment to specific termination reasons.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.