Your longest-serving employee just asked for two months off — and you need to know how much they have earned, whether you can refuse, and what you owe if they resign instead.

Long service leave (LSL) in Australia is paid leave earned after a long period of continuous service with one employer. For most private-sector employers it is governed by state and territory long service leave legislation, not the Fair Work Act 2009 — and it is not one of the National Employment Standards. The standard entitlement is about 8.67 weeks (two months) of paid leave after 10 years of continuous service, with South Australia and the Northern Territory more generous at 13 weeks. Who qualifies, how fast accrual runs, when a pro-rata payout is owed and whether casuals are included all depend on the state where the employee works.

This Fair Work Centre guide covers the calculation, the state-by-state rules, and the traps: termination payouts, leave directions and record keeping.

How Is Long Service Leave Calculated in Australia?

Because LSL is not an NES entitlement, every calculation starts with the legislation of the state or territory where the employee works — not where your head office is. The Fair Work Act 2009 still matters for payroll records, but the entitlement itself comes from state law.

In most states LSL accrues continuously at roughly 0.867 weeks per year (a statutory “month” equals 4.33 weeks), reaching 8.67 weeks at 10 years; SA and the NT accrue faster at 1.3 weeks per completed year. Three rules drive the numbers:

• Ordinary pay only. Accrual and payout use the employee’s ordinary weekly rate when the leave is taken or employment ends — overtime is excluded.
• Continuity is everything. Paid leave counts towards continuous service; unpaid parental leave generally extends the qualifying period without adding accrual.
• Casuals often accrue too. In most states, regular and systematic casuals accrue LSL in proportion to hours worked.

Use the Fair Work Ombudsman’s long service leave guidance as a cross-check, but the state act is the authority for any payout.

Long Service Leave in Australia by State

The headline minimums are below. Misconduct carve-outs, casual treatment and notice requirements differ between the acts, so confirm against the current legislation before finalising any payment.

State acts set the minimum; some awards and enterprise agreements improve LSL terms.

How Many Weeks Is Long Service Leave in Australia?

The benchmark is 8.67 weeks after 10 years in NSW, Victoria, Queensland, WA, Tasmania (at 10 years) and the ACT; SA and the NT pay 13 weeks. Two quirks matter: Victorian employees can take accrued leave from 7 years (the friendliest vesting point in the country), and Victoria alone allows LSL at half pay for twice as long where reasonable. In NSW, a further month accrues per additional 5 years.

Do Casuals Get Long Service Leave in Australia?

In NSW, Victoria, Queensland, SA and the ACT, casuals engaged regularly and systematically with a reasonable expectation of ongoing work accrue LSL in proportion to hours worked; WA excludes most casuals. The risk: a long-serving casual resigns and claims years of pro-rata leave your payroll never tracked. Keep hourly accrual records for every casual.

What Happens to Long Service Leave When Employment Ends?

A vested entitlement must always be paid out, and most states also require a pro-rata payment once the trigger above is met — after 5 years in NSW, after 7 years in Victoria, Queensland and SA. The payment is made in final pay at the employee’s final ordinary rate, and serious and wilful misconduct can forfeit a pro-rata (not vested) entitlement in several states. Redundancy is a dismissal for LSL purposes, so the payout interacts with notice and redundancy pay — see our redundancy advice for employers. Unlike unfair dismissal claims, which go to the Fair Work Commission, LSL underpayments are pursued by state wage authorities and the Fair Work Ombudsman for up to 6 years.

Can an Employer Direct an Employee to Take Long Service Leave?

Timing is usually by agreement. Some acts do allow a written direction — Victoria’s 2018 Act lets an employer direct an employee to take accrued LSL, with notice requirements set out in the legislation, and other state acts contain similar limited powers. Check the applicable act (and our guide on whether an employer can force an employee to take annual leave) before issuing a direction. Employees generally cannot be required to cash out — most states pay LSL out only when employment ends, though NSW permits cash-out by written agreement in limited circumstances.

Employer Obligations: Records, Payroll and Portable Schemes

Track every employee’s LSL accrual in your payroll system and keep the records for at least 7 years — poor record-keeping is one of the most common findings in Fair Work Ombudsman audits. Good payroll compliance processes should flag employees approaching a vesting point, and you can download free employment document templates, including leave registers.

One final trap: in construction, contract cleaning and security (in several states), levy-funded portable LSL schemes replace direct accrual — registration is mandatory.