An employee is entitled to 13 weeks of paid leave after 15 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 10 years after the initial first entitlement. The employee will receive 8 2/3 weeks after 10 years of continuous service
How do you work out Pro-rata Long Service Leave?
Where at least 10 years continuous service has been completed but less than 15 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 120.75)
Is there a formula to work out fully accrued Long Service Leave?
Where at least 15 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.
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 17 years of service and took Long Service Leave at 15 years, they will be entitled to a pro rata entitlement of 2 years.
Is Long Service Leave paid out on termination?
Yes - once an employee has reached ten years of continuous service and they have resigned or are terminated, they are entitled to be paid their pro rata long service leave upon termination (except in the case of a termination for serious misconduct).
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 public holiday is absorbed into the duration of the leave service leave period.
Can the employee cash out Long Service Leave?
No - There is no ability under the Long Service Leave General Order for employees to cash out long service leave.
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 calculated by averaging the employee rate of pay for each week over the previous 3 months.
How many hours is Long Service Leave based on?
An employee is entitled to be paid in accordance with the Long Service Leave General Order and the Long service leave Act (prior to the amendments of 4th July 2006); whichever of the 2 provides a greater entitlement to the employee. This is irrespective if whether the Long Service leave Act or Long Service Leave General Order is binding.
In the case of part time and casual employees, the number of hours usually worked but not exceeding the prescribed standard (usually worked refers to the number of hours commonly worked at or about the time the leave is taken – not the average of hours worked)
Under the Long Service Leave Act the number of hours to be paid is the normal 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 General Order does not require leave loading to be paid.
Does an employee get Superannuation when taking Long Service Leave?
Yes - superannuation is payable. An employee will get any entitlements that they would have received had they worked.
Is superannuation payable on Long Service Leave on termination?
No - superannuation is not payable as per the Superannuation Guarantee Ruling. However, please check any relevant awards or agreements that may specify a different entitlement.
When is the Long Service Leave payment made?
Long Service Leave can be paid in full before the employee goes on leave or at the same time the employee's wages would have been paid if the employee had remained at work, or in any other way agreed to by the employee and employer.
Is a casual employee entitled to Long Service Leave?
Casual employees are entitled to Long Service Leave provided their service with the employer has been continuous and for the required periods of time.