Long service leave in Australia: state-by-state

Why long service leave is state-by-state

Long service leave is a state and territory matter in Australia, meaning it is governed by legislation at the state and territory level, rather than by the Commonwealth. Each state and territory has its own Long Service Leave Act which sets out the specific rules and entitlements.

The legislation that applies to an employee’s long service leave entitlement is determined by the state or territory where the work is performed. This means an employee is entitled to the provisions of the law of the state or territory where they are working, irrespective of the employer’s location.

For employees who have worked in multiple states or territories, the law of the state or territory where the employee has accumulated the most service generally determines their long service leave entitlements.

Entitlement by jurisdiction

Long service leave entitlements vary across Australian jurisdictions. Generally, employees accrue leave after a period of continuous service with the same employer. The length of service required to be eligible for a full period of leave, and the amount of leave accrued, differs between states and territories. Employers should utilise a compliance calendar tool to track these varying requirements.

Several jurisdictions offer long service leave after 10 years of continuous service, granting employees 8.67 weeks of leave. These include New South Wales, Queensland, Western Australia, and the Northern Territory. South Australia provides 13 weeks after 10 years, with an additional 1.3 weeks accruing each subsequent year. Tasmania offers 8.67 weeks after 10 years, increasing to 13 weeks for some employees after 15 years.

• Victoria: 8.67 weeks after 7 years; pro-rata available after 7 years on termination.
• Australian Capital Territory: 6.0667 weeks after 7 years.

Portable LSL schemes

Several Australian states operate industry-wide portable long service leave (LSL) schemes. These schemes allow employees to accrue LSL entitlements across multiple employers within the same industry, rather than being tied to a single employer. This is particularly relevant for workers who move between jobs frequently.

Portable LSL schemes are most common in the building and construction industry, with schemes operating in most jurisdictions. Other industries that have portable LSL schemes in some states include contract cleaning and community services.

• These schemes aim to ensure workers in industries with high mobility accrue LSL entitlements regardless of their employment history.

What employers must do

Employers are required to maintain records of each employee’s continuous service, commencing from their start date within the relevant state or territory. This tracking is essential for determining eligibility for long service leave (LSL) and calculating accrued entitlements. The applicable legislation for each jurisdiction outlines the specific requirements for service calculation.

When an employee takes LSL, employers must pay them at the rate stipulated by the relevant Act. This is typically the employee’s ordinary rate of pay at the time the leave is taken. Upon an employee’s termination of employment, any accrued LSL entitlements must be paid out in accordance with the provisions of the applicable legislation.

For employees who work in multiple states or territories, employers must document where the employee performed the majority of their work. This determination is necessary to identify the jurisdiction whose legislation governs the employee’s LSL entitlements.