Long service leave (LSL) in Australia is a leave benefit designed to reward employees for their extended commitment to a single employer. The entitlement is usually available after 10 years of service with one employer. Each state and territory has different rules about when and how it’s taken. Each state and territory has its own Long Service Leave legislation.
Long service leave entitlements also vary between states and territories. The details about the pro rata entitlements usually have specific circumstances that an employee has to satisfy to be eligible for the pro rata entitlement on termination of employment, so it’s important to understand when an employee may be entitled to a pro rata LSL payment. Here’s an overview of each state and territory’s long service leave entitlements in Australia:
Australian Capital Territory
In the ACT, long service leave is generally available after seven years of continuous service. An employee who completes a period of continuous service of at least 7 years is entitled to 6.0667 weeks paid leave.
- ACT grants pro-rata long service leave between five years and seven years of continuous service.
New South Wales
After ten years of continuous service with the same employer, employees in NSW are entitled to 2 months (8.6667 weeks) of long service leave.
- Pro-rata long service leave is available after five years of continuous service.
- After five years of continuous service, employees in NSW are entitled to pro-rata long service leave.
Northern Territory
After 10 years of continuous service, employees in the Northern Territory are entitled to 13 weeks of long service leave.
- In the Northern Territory, pro-rata long service leave is available after seven years of continuous service. The entitlement is 1.3 weeks for each completed year of service.
Queensland
Queensland employees are entitled to take 8.6667 weeks of paid long service leave after a period of 10 years’ continuous service.
- Queensland offers pro-rata long service leave after seven years of continuous service.
South Australia
After 10 years of continuous service in South Australia, employees are entitled to 13 weeks of long service leave.
Pro-rata entitlement is available after seven years.
After seven years of continuous service in South Australia, employees are entitled to pro-rata long service leave, calculated at 1.3 weeks for each completed year of service.
Tasmania
Tasmania grants long service leave after 10 years of continuous service.
- The entitlement is 8.6667 weeks at the ordinary rate of pay.
- Tasmania provides pro-rata long service leave after seven years of continuous service.
Victoria
In Victoria, long service leave is generally granted after 7 years of continuous service.
- Employees are entitled to 6.1 weeks of leave at the ordinary rate of pay. LSL is calculated as the total number of weeks’ employment divided by 60 and multiplied by the ordinary weekly rate of pay at the time the leave is taken, or when the employee ceases employment.
Western Australia
Western Australia offers long service leave after 10 years of continuous service.
- The entitlement is 8.6667 weeks at the ordinary rate of pay.
- Pro-rata long service leave in Western Australia is available after seven years of continuous service.
Understanding the specifics of long service leave in each state and territory is essential for both employers and employees to ensure compliance with local regulations. It’s important to note that these entitlements may be subject to changes, so it’s advisable to consult the relevant state or territory industrial relations departments for the most up-to-date information.
Understanding the pro-rata calculations is essential for employees who may not reach the full 10 years of continuous service but are still entitled to a proportional amount of long service leave on termniation of their employment under certain circumstances. Employers should carefully track employees’ service duration and adhere to the specific calculations outlined in each state or territory’s legislation to ensure compliance with local regulations.
It’s also important to understand that some states have industry based portable long service leave schemes that are covered by legislation. They are funded in different ways, some states require contribution from the employer and other states fund the scheme from contributions made by development applications. This means an employee keeps their long service leave entitlement even if they work on different projects for one or more employers.
These schemes are in the following industries:
- Security
- community services
- building and construction
- coal mining
- contract cleaning
For further expert advice on human resources or if you have any questions about anything HR related, get in touch.
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