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Pay long service leave under the LSL Act 2018 (Vic)

VIC employees accrue LSL after 7 years continuous service — paid on entitlement or termination.

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Who must comply

Employers of Victorian employees, covering full-time, part-time, casual, seasonal and fixed-term staff. Casual and seasonal service stays continuous unless a gap between engagements exceeds 12 weeks (with exceptions, such as up to 104 weeks of parental leave or a regular and systematic engagement). Some industries are covered by portable schemes instead.

What triggers it

An employee reaching 7 years of continuous employment with the business, including service with a previous owner where the business changed hands and employment continued.

When due

Leave may be taken after 7 years, on agreement or on at least 12 weeks' written direction from the employer. On termination after 7 years, payment of the full accrued entitlement is due on the day employment ends.

Evidence required

Long service leave records for every employee (start date, service, absences, leave taken and paid), which must be provided to current or former employees on request; timesheets or hours records for casual and seasonal staff; written directions to take leave; final-pay calculations showing weeks of service divided by 60.

Max penalty

Failing to pay the full accrued entitlement on the day employment ends is an offence carrying 12 penalty units for a natural person and 60 penalty units for a body corporate, for each day the offence continues, and a criminal conviction may be recorded. Paying out leave instead of letting it be taken is also an offence for both employer and employee

Who must comply with this? The applicability test by industry, business structure and size.

Summary

The Long Service Leave Act 2018 (Vic) gives most Victorian workers long service leave once they have worked continuously for one employer for at least 7 years. Leave accrues at one week for every 60 weeks of continuous service (about 0.866 of a week a year). After 7 years an employee may take the leave, and when employment ends for any reason, including resignation, dismissal, redundancy or death, the employer must pay out the full accrued balance on the last day. Contract terms that give less than the Act are invalid, and cashing out leave while employment continues is generally an offence. Workforce Inspectorate Victoria (known as Wage Inspectorate Victoria until 12 December 2025) investigates and prosecutes breaches.

Enforced by

Source legislation

Topics

lslworkplacevic

Related

Frequently asked questions

Who must comply with long service leave under the LSL Act 2018 (Vic)?
Employers of Victorian employees, covering full-time, part-time, casual, seasonal and fixed-term staff. Casual and seasonal service stays continuous unless a gap between engagements exceeds 12 weeks (with exceptions, such as up to 104 weeks of parental leave or a regular and systematic engagement). Some industries are covered by portable schemes instead.
What triggers long service leave under the LSL Act 2018 (Vic)?
An employee reaching 7 years of continuous employment with the business, including service with a previous owner where the business changed hands and employment continued.
When is long service leave under the LSL Act 2018 (Vic) due?
Leave may be taken after 7 years, on agreement or on at least 12 weeks' written direction from the employer. On termination after 7 years, payment of the full accrued entitlement is due on the day employment ends.
What is the maximum penalty for long service leave under the LSL Act 2018 (Vic)?
Failing to pay the full accrued entitlement on the day employment ends is an offence carrying 12 penalty units for a natural person and 60 penalty units for a body corporate, for each day the offence continues, and a criminal conviction may be recorded. Paying out leave instead of letting it be taken is also an offence for both employer and employee
What evidence is required for long service leave under the LSL Act 2018 (Vic)?
Long service leave records for every employee (start date, service, absences, leave taken and paid), which must be provided to current or former employees on request; timesheets or hours records for casual and seasonal staff; written directions to take leave; final-pay calculations showing weeks of service divided by 60.

Source: https://www.vic.gov.au/long-service-leave. Rules Mate is not a law firm. Always verify against the live regulator source before acting.