Long service leave¶

Long service leave is a period of paid leave an employee earns for staying with the same employer for a long time. It is a reward for long, unbroken service.

The tricky part is that the rules are not the same everywhere. Most long service leave comes from state and territory laws, so how long you must work before you get it, and how much you get, can change depending on where you work.

In one line

Long service leave is paid leave for long service with one employer — but the amount and the rules come mostly from state and territory laws, so they differ by state or territory.

Why this matters¶

Long service leave is one of the few entitlements that is not the same across Australia. If you assume a single national figure, you can easily get an employee's entitlement wrong. Knowing that the rules come from your state or territory — and where to check them — helps you get it right.

What you will learn¶

What long service leave is
Why the rules come mostly from state and territory laws
Where to check the entitlement that applies to you

Understanding the concept¶

Long service leave rewards continuous service — an unbroken period of working for the same or a related employer. After an employee has clocked up enough continuous service, they earn a block of paid leave.

Fair Work explains that most employees get their long service leave from the long service leave laws in their state or territory. Because each state and territory has its own law, the length of service you need before you qualify, and the amount of leave you receive, can be different from one place to the next. Some entitlements also come from older awards or agreements.

Fair Work does not set a single national figure for long service leave. Instead, it points you to the long service leave body in your state or territory to find the rules that apply to you.

Some points that also vary by state or territory:

Whether long-serving casual employees can qualify.
Whether leave that has built up but not been taken is paid out when employment ends.
Whether an employee in certain industries keeps their entitlement when they move between employers (this is sometimes called portable long service leave).

For accountants & bookkeepers

Fair Work notes that, depending on the relevant state or territory law or industrial instrument, an entitlement can arise after a period of continuous service that varies between jurisdictions. State and territory long service leave laws generally prevail over an inconsistent term in an enterprise agreement. Whether pro-rata long service leave is paid out on termination also depends on the law in the state or territory where the employee works. Always confirm against the relevant state or territory long service leave body rather than relying on a single national figure.

Example¶

Sam has worked full-time for the same business for many years and asks whether long service leave is due. The employer does not assume a national figure. Instead, they check the long service leave rules for the state where Sam works, because that is where the entitlement comes from. Those rules tell the employer how much continuous service is needed and how much paid leave Sam has earned. A business with staff in more than one state checks each state separately, because the rules can differ.

Common mistakes¶

Assuming long service leave is the same everywhere in Australia — the rules come mostly from state and territory laws.
Using a single number of weeks or years for every employee, no matter where they work.
Forgetting that an entitlement can also come from an older award or agreement.
Assuming untaken long service leave is always paid out when someone leaves — whether it is depends on the state or territory.

How this works in myaccountant¶

In the app — you can set up a leave type for long service leave and track an employee's balance against it. When you pay long service leave in a pay run, it shows on the employee's payslip like other paid leave. The app tracks the balance you set up; the entitlement itself still comes from the long service leave rules for your state or territory.

Key points¶

Long service leave is paid leave for long, continuous service with one employer.
The rules come mostly from state and territory laws, so they differ by location.
There is no single national number of weeks or years.
Check the long service leave body for your state or territory for the exact rules.
Some entitlements can also come from an older award or agreement.
Whether untaken leave is paid out at the end depends on the state or territory.

Learn next¶

General information only — not tax, super or financial advice.

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