When is an employee's first entitlement to Long Service Leave?

An employee is entitled to 8 2/3 weeks paid leave after 10 years of continuous service.

When are the employee's next and subsequent entitlements?

Employees are able to access their next and then subsequent entitlements every 5 years after the first entitlement. The employee will receive 4 1/3 weeks after 5 years of continuous service

How do you work out Pro-rata Long Service Leave?

Where at least 7 years continuous service has been completed but less than 10 years of service, proportionate Long Service Leave is payable and is calculated on completed years, months and days of service with the employer.

Formula for working out pro-rata Long Service Leave:

Months worked              x 13 = weeks accrued
180 months

Months worked includes partial months worked. In order to calculate the partial months worked, the following formula should be used:

Days of service 
Days in that month           

= % of the month worked.

This percentage is then added to the above formula as months worked (eg, if the % is 0.75 the months worked will be eg 84.75)

Is there a formula to work out fully accrued Long Service Leave?

Where at least 10 years of service has been completed, Long Service Leave is payable on completed years of service only, as per the formula below.

Number of completed years of service       x 13
                        15

= the amount of weeks accrued.

Is Long Service Leave paid out on termination?

Yes - once an employee has reached seven years of consecutive service and they have resigned or are terminated, they are entitled to pro rata long service leave upon termination (except in the case of a termination for serious misconduct).

If the employee does not reach their 2nd or subsequent entitlement - do they get a proportionate (pro rata) payout on termination?

Yes, the employee will receive a pro rata amount. For instance - if the employee has completed 12 years of service and took Long Service Leave at 10 years, they will be entitled to a pro rata entitlement of 2 years.

What happens to the Public Holidays that fall during a period of Long Service Leave?

If a public holiday occurs during a period of Long Service Leave taken by an employee, the period of long service leave is increased by one day for each public holiday that has occurred during this time.

Can the employee cash out Long Service Leave?

An employer and employee may agree for an employee to cash out Long Service Leave as long as:

• The employee is given an adequate benefit in lieu of the entitlement; and 
• The agreement is in writing.

What rate is Long Service Leave paid at?

For employees who are paid by a wage or a salary - the rate of pay is the ordinary rate applicable at the time leave commences (excludes shift premiums, overtime, penalty rates, allowances or the like)

For employees who are employed on a piece or bonus system (such as commission) the rate of pay is the ordinary rate averaged over the last 12 months. The average is calculated on both the commission and retainer earnings.

How many hours is Long Service Leave based on?

The number of hours to be paid is the ordinary weekly number of hours of work. However, if the weekly hours have varied over the period of employment, the normal weekly hours are determined by averaging the weekly hours worked during the entire period of employment.

Can an employee take Long Service Leave early?

Leave may be taken in advance by agreement.

Do I pay leave loading on Long Service Leave?

The Long Service Leave Act does not require leave loading to be paid.

Does an employee get Superannuation when taking Long Service Leave?

Superannuation is payable as per the Superannuation Guarantee Rulings. However, please check any relevant awards or agreements that may specify a different entitlement.

Is superannuation payable on Long Service Leave on termination?

When is the Long Service Leave payment made?

If the employee requests in writing to be paid before leave begins the employer must comply otherwise the employee can be paid in the same pay period as if he/she were not on Long Service Leave.

Is a casual employee entitled to Long Service Leave?