Employment & Fair Work
What is Long service leave?
Long service leave is paid leave that rewards extended service with one employer, set by state and territory laws rather than the Fair Work Act. In most jurisdictions employees receive about 8.67 weeks of paid leave after 10 years of continuous service, with pro-rata payouts on termination after 5 to 7 years.
How entitlements differ by state and territory
Unlike annual leave and redundancy pay, long service leave is not a National Employment Standard: each state and territory legislates its own scheme, and the differences are material. Six jurisdictions accrue roughly 0.867 weeks per year of service (8.667 weeks after 10 years), while South Australia and the Northern Territory accrue 1.3 weeks per year, which is 13 weeks after 10 years, about 50 per cent more.
| Jurisdiction | Leave at 10 years | Right to take leave | Pro-rata payout on termination from |
|---|---|---|---|
| NSW | 8.67 weeks (2 months) | 10 years | 5 years |
| VIC | 8.67 weeks | 7 years | 7 years |
| QLD | 8.67 weeks | 10 years | 7 years |
| SA | 13 weeks | 10 years | 7 years |
| WA | 8.67 weeks | 10 years | 7 years |
| TAS | 8.67 weeks | 10 years | 7 years |
| NT | 13 weeks | 10 years | 7 years |
| ACT | 8.67 weeks | 7 years | 5 years |
Always check the legislation for the state where the employee works, and see the Fair Work Ombudsman's long service leave overview on fairwork.gov.au for links to each state authority.
What counts as continuous service
The entitlement turns on continuous service with one employer, but continuity is more forgiving than it sounds. Approved unpaid leave, parental leave and stand-downs generally do not break service (though some periods may not count towards the accrual). If the business is sold and the employee transfers with it, service usually carries across to the new owner, who inherits the accrued liability, something every business purchaser should price into the deal. In most jurisdictions regular and systematic casual employees accrue long service leave too, which surprises many employers: a casual who has worked steadily for the same cafe for eight years may already hold a pro-rata entitlement.
How employment ends also matters for pro-rata payouts. Between the pro-rata threshold and the full entitlement, most states pay out on termination by the employer, redundancy, or resignation for reasons such as illness or domestic necessity, but not always on a simple voluntary resignation, and generally not on dismissal for serious misconduct. The rules differ by state, so before finalising a termination payment, confirm both the years of service and the reason for termination against the relevant state Act rather than assuming a payout is or is not due.
Why it matters for small business
Long service leave is a real liability that accrues quietly. An employee on $75,000 in New South Wales accrues roughly $1,250 of long service leave value every year; by year seven that is close to $9,000 sitting off the radar if you are not tracking it. Good practice is to recognise a provision in your accounts once employees pass the halfway mark, so a resignation in year eight does not produce a surprise five-figure payment in a lean month. The leave is paid at the employee's ordinary pay rate (state definitions vary on what ordinary pay includes, particularly for commissions and allowances).
Some industries have portable schemes that change the picture entirely: construction, and in several states contract cleaning and community services, run portable long service schemes where employers pay a levy and the entitlement follows the worker between employers. If you operate in those industries, registration with the state scheme is compulsory and the levy replaces most of the direct liability. For everyone else, estimate current entitlements and the accrued dollar value with the OneBookPlus long service leave calculator, and revisit the provision each EOFY alongside your other payroll accruals.
Run your own Long service leave numbers
The definitions above only get you so far; the free OneBookPlus long service leave calculator turns them into your own figures in seconds, no sign-up needed.
Long service leave frequently asked questions
Do casual employees get long service leave?
In most states and territories, yes. Regular and systematic casuals accrue long service leave on the same continuous-service basis as permanent staff, with the payment based on their ordinary earnings. Check the specific state Act, as definitions of continuity for casuals vary.
What happens to long service leave when a business is sold?
Where employees transfer with the business, their service is usually treated as continuous and the new owner inherits the accrued entitlement. Purchasers normally negotiate an adjustment for the accrued liability at settlement.
Is long service leave paid out on resignation?
Once the employee has passed the full entitlement point, yes. Between the pro-rata threshold (5 years in NSW and the ACT, generally 7 elsewhere) and full entitlement, it depends on the state and the reason employment ended: termination by the employer or pressing necessity usually qualifies, a simple resignation sometimes does not.
Last reviewed and updated: by Bishal Shrestha