Who must pay long service leave under the IR Act 2016 (Qld)?
The applicability test for Pay long service leave under the IR Act 2016 (Qld), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has employees.
What the obligation is
QLD employees accrue 8.6667 weeks LSL after 10 years' continuous service; pro-rata after 7 years.
Where no long service leave entitlement exists under the federal system, the Industrial Relations Act 2016 (Qld) gives Queensland employees, including casual, regular part-time and seasonal staff, 8.6667 weeks of paid leave after 10 years' continuous service and a further 4.3333 weeks after another 5 years; beyond 15 years leave can be accessed as it accrues. Between 7 and 10 years, a pro-rata payout is due on termination only for listed reasons, such as death, illness, a domestic or other pressing necessity, or dismissal for a reason other than conduct, capacity or performance. After 10 years the payout on termination is automatic. Leave is paid at the ordinary rate, and can be cashed in only where an industrial instrument allows it or the Queensland Industrial Relations Commission orders it on compassionate or financial-hardship grounds. The Office of Industrial Relations investigates breaches.
The applicability test
Applies when the business has employees.
How the regulator frames it: Employers of Queensland employees not covered by a federal long service leave entitlement (state and local government employers sit in the state system). Eligible building and construction, contract cleaning and community services workers also have portable schemes run by QLeave, but an employer who keeps a worker for 10 years or more must still pay that worker's entitlement directly.
What triggers it: An employee completing 10 years' continuous service, or employment ending after 7 years for a qualifying reason. Service outside Queensland can count where the employment was partly in the State (Infosys Technologies Limited v Fox [2025] QCA 45).
Jurisdiction: Queensland law only. A business with no operations in QLD is outside it, whatever the rest of the test says.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).
The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".
| Size band | Answer across all industries, any structure |
|---|---|
| No employees (turnover $100K–$1M) | No |
| 1–5 employees (turnover $100K–$1M) | Yes |
| 6–19 employees (turnover $1M–$3M) | Yes |
| 20–99 employees (turnover $3M–$10M) | Yes |
| 100–499 employees (turnover $10M–$100M) | Yes |
| 500+ employees (turnover $100M–$1B) | Yes |
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. You have employees (6–19)
- Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires employees.
What you must do, and when
- When due
- Leave is taken at a time agreed between employer and employee; failing agreement the employer may require at least 4 weeks of leave on at least 3 months' written notice. Payment for accrued leave is due when employment ends.
- Frequency
- When a triggering event occurs
- Evidence to keep
- Complete time and wages records of continuous service; for each casual employee, a record of total ordinary hours worked from the start of service to 30 June each year, kept for 6 years after employment ends (recommended for part-time staff too); leave calculations (ordinary hours divided by 52, multiplied by 8.6667, divided by 10 for casual and part-time staff).
- Status
- Current
- Priority
- High
Penalty for not complying
Maximum penalty: The Office of Industrial Relations can investigate potential breaches of the long service leave provisions, and employees can lodge a claim to recover unpaid long service leave. Penalty amounts are set in the Industrial Relations Act 2016 (Qld); check the Act for the current figures.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Obligations with the same applicability test
If this obligation applies to you, so do these 2: the engine uses the same rule for each.
Where it sits in the corpus
Rules Mate tracks 5 published obligations tagged "lsl", 0 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 3 of those apply outright. This obligation is rated high priority, and is triggered by events.
Regulator, legislation and tools
Free tools that help with this obligation:
Questions
- Who must pay long service leave under the IR Act 2016 (Qld)?
- Applies when the business has employees.
- Do sole traders need to pay long service leave under the IR Act 2016 (Qld)?
- Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
- Do businesses with 1–5 employees need to pay long service leave under the IR Act 2016 (Qld)?
- Yes (1–5 employees, turnover $100K–$1M).
- When is "Pay long service leave under the IR Act 2016 (Qld)" due?
- Leave is taken at a time agreed between employer and employee; failing agreement the employer may require at least 4 weeks of leave on at least 3 months' written notice. Payment for accrued leave is due when employment ends.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.