Pay long service leave under the LSL Act 1955 (NSW)
NSW employees accrue 2 months LSL after 10 years' continuous service, payable on resignation after 5 years.
Who must comply
Every employer of full-time, part-time or casual workers in NSW, including employers of pieceworkers, commission workers and outworkers not covered by a federal award or enterprise agreement. Private sector workers whose federal award or enterprise agreement deals with long service leave, NSW public sector workers, Commonwealth government workers and local government workers under the Local Government State Award 2023 fall outside the Act.
What triggers it
A worker completing 10 years' continuous service, or employment ending after at least 5 years' service in one of the qualifying circumstances; a business sale that transfers workers to a new employer.
When due
Leave falls due at 10 years' service; the employer may direct when it is taken with at least 1 month's notice (shorter by agreement). Accrued and untaken leave must be paid immediately from the date employment ends.
Evidence required
A Long Service Leave Record for each worker, kept throughout service and for at least 6 years after employment ends; records of absences and unpaid leave; payroll calculations of the ordinary-time rate used; on a business sale, the transferred records required by section 8 of the Act.
Max penalty
Failing to pay long service leave when due, and giving or receiving payment instead of leave, are offences that can lead to court action and a criminal conviction; separate penalties apply for failing to keep the required records. Unpaid entitlements remain recoverable by the worker
Who must comply with this? The applicability test by industry, business structure and size.
Summary
The Long Service Leave Act 1955 (NSW) gives full-time, part-time and casual workers in NSW 8.67 weeks (2 months) of paid long service leave after 10 years' continuous service with the same employer, and a further 4.33 weeks (one month) for each additional 5 years. Between 5 and 10 years, a pro-rata payment is owed if the employer ends the employment for a reason other than serious misconduct, or the worker resigns because of illness, incapacity or domestic or other pressing necessity, or dies; after 10 years it is owed however employment ends. Leave cannot be cashed out, and it is an offence not to pay an entitlement when it falls due. Separate portable schemes cover building and construction, community services and contract cleaning workers, who accrue service across employers.
Enforced by
Source legislation
Topics
Related
- NSWComply with Workplace Surveillance Act 2005 (NSW)NSW employers conducting workplace surveillance must give notice + meet specific conditions.
- VICPay long service leave under the LSL Act 2018 (Vic)VIC employees accrue LSL after 7 years continuous service — paid on entitlement or termination.
- QLDPay long service leave under the IR Act 2016 (Qld)QLD employees accrue 8.6667 weeks LSL after 10 years' continuous service; pro-rata after 7 years.
- NSWPCBU primary duty of care (NSW WHS Act s 19)NSW PCBUs must so far as reasonably practicable ensure the health and safety of workers and others.
- NSWNSW mining safety obligations (Work Health and Safety (Mines and Petroleum Sites) Act 2013)NSW mine operators face mine-specific WHS obligations + Resources Regulator oversight.
- NSWNotify SafeWork NSW of notifiable WHS incidentsDeath, serious injury, illness, dangerous incident — notify SafeWork NSW immediately.
Frequently asked questions
- Who must comply with long service leave under the LSL Act 1955 (NSW)?
- Every employer of full-time, part-time or casual workers in NSW, including employers of pieceworkers, commission workers and outworkers not covered by a federal award or enterprise agreement. Private sector workers whose federal award or enterprise agreement deals with long service leave, NSW public sector workers, Commonwealth government workers and local government workers under the Local Government State Award 2023 fall outside the Act.
- What triggers long service leave under the LSL Act 1955 (NSW)?
- A worker completing 10 years' continuous service, or employment ending after at least 5 years' service in one of the qualifying circumstances; a business sale that transfers workers to a new employer.
- When is long service leave under the LSL Act 1955 (NSW) due?
- Leave falls due at 10 years' service; the employer may direct when it is taken with at least 1 month's notice (shorter by agreement). Accrued and untaken leave must be paid immediately from the date employment ends.
- What is the maximum penalty for long service leave under the LSL Act 1955 (NSW)?
- Failing to pay long service leave when due, and giving or receiving payment instead of leave, are offences that can lead to court action and a criminal conviction; separate penalties apply for failing to keep the required records. Unpaid entitlements remain recoverable by the worker
- What evidence is required for long service leave under the LSL Act 1955 (NSW)?
- A Long Service Leave Record for each worker, kept throughout service and for at least 6 years after employment ends; records of absences and unpaid leave; payroll calculations of the ordinary-time rate used; on a business sale, the transferred records required by section 8 of the Act.
Source: https://www.nsw.gov.au/employment/rights-responsibilities/leave/long-service-leave. Rules Mate is not a law firm. Always verify against the live regulator source before acting.