{"id":3473,"date":"2026-11-03T17:25:24","date_gmt":"2026-11-03T04:25:24","guid":{"rendered":"https:\/\/www.workstem.com\/au\/blog\/auto-draft\/"},"modified":"2026-11-04T14:30:17","modified_gmt":"2026-11-04T01:30:17","slug":"long-service-leave-by-state-rules-payouts","status":"publish","type":"post","link":"https:\/\/www.workstem.com\/au\/blog\/long-service-leave-by-state-rules-payouts\/","title":{"rendered":"Long Service Leave by State: Rules &amp; Payouts"},"content":{"rendered":"<div class='post-index' id='post-index'><a href='###' id='post-index-close'><i class='fa fa-list'><\/i><\/a>\r\n\t\t\t\t<h3 class='post-index-title'>Table of content<\/h3>\r\n\t\t\t\t<div class='post-index-inner' id='post-index-inner'>\r\n\t\t\t\t<ol class='post-index-list'><li class=\"post-index-item\" data-tt=\"title-idx-0\" ><a href=\"###\"title=\"What is long service leave in Australia?\">What is long service leave in Australia?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-1\" ><a href=\"###\"title=\"Long service leave by state: How much leave do employees receive?\">Long service leave by state: How much leave do employees receive?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-2\" ><a href=\"###\"title=\"Long service leave NSW: Entitlement and payout rules\">Long service leave NSW: Entitlement and payout rules<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-3\" ><a href=\"###\"title=\"Long service leave Victoria: Accrual after seven years\">Long service leave Victoria: Accrual after seven years<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-4\" ><a href=\"###\"title=\"Long service leave Queensland: Ten years and pro-rata termination payments\">Long service leave Queensland: Ten years and pro-rata termination payments<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-5\" ><a href=\"###\"title=\"Long service leave WA: Entitlement and payout on resignation\">Long service leave WA: Entitlement and payout on resignation<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-6\" ><a href=\"###\"title=\"Long service leave SA: Why the entitlement is different\">Long service leave SA: Why the entitlement is different<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-7\" ><a href=\"###\"title=\"Long service leave in the ACT, Tasmania and Northern Territory\">Long service leave in the ACT, Tasmania and Northern Territory<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-8\" ><a href=\"###\"title=\"How does long service leave accrue?\">How does long service leave accrue?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-9\" ><a href=\"###\"title=\"What counts as continuous service for long service leave?\">What counts as continuous service for long service leave?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-10\" ><a href=\"###\"title=\"How is a long service leave payout calculated?\">How is a long service leave payout calculated?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-11\" ><a href=\"###\"title=\"How should employers manage long service leave balances?\">How should employers manage long service leave balances?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-12\" ><a href=\"###\"title=\"Final checklist for long service leave compliance\">Final checklist for long service leave compliance<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-13\" ><a href=\"###\"title=\"Frequently asked questions\">Frequently asked questions<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-14\" ><a href=\"###\"title=\"Read more\">Read more<\/a><\/li><\/ol>\r\n\t\t\t<\/div><\/div>\r\n\t\t\t<script>\r\n\t\t\t$(function(){\r\n\t\t\t\tvar contIdxHeight = $('#post-index-inner').height()+20;\r\n\t\t\t\t$('#post-index-inner').css('height',contIdxHeight+'px');\r\n\t\t\t\t$('#post-index-close').on('click',function(){\r\n\t\t\t\t\tif($('#post-index-inner').height()>20) {\r\n\t\t\t\t\t\t$('#post-index-inner').css('height',0);\r\n\t\t\t\t\t\t$('#post-index-inner').css('padding-top',0);\r\n\t\t\t\t\t} else {\r\n\t\t\t\t\t\t$('#post-index-inner').css('height',contIdxHeight+'px');\r\n\t\t\t\t\t\t$('#post-index-inner').css('padding-top','20px');\r\n\t\t\t\t\t}\r\n\t\t\t\t});\r\n\t\t\t\t$('.post-index-item').on('click',function(){\r\n\t\t\t\t\tvar tt=$(this).data('tt');\r\n\t\t\t\t\tscrollPosition(document.getElementById(tt));\r\n\t\t\t\t});\r\n\t\t\t});\t\r\n\t\t\t<\/script><div class='post-content-full'><p>Long service leave can become a payroll problem when an employee resigns, a business changes ownership or an HR team discovers that leave has been accruing under the wrong rules.<\/p>\n<p><strong>In Australia, long service leave entitlements depend on the applicable state or territory law, continuous service, the reason employment ends and, in some cases, the award or agreement covering the employee.<\/strong> Most employees become entitled to take long service leave after seven or ten years, but the amount of leave and the rules for a pro-rata payout are not the same everywhere.<\/p>\n<p>This guide compares long service leave in NSW, Victoria, Queensland, Western Australia and South Australia, alongside the ACT, Tasmania and the Northern Territory. It explains how leave accrues, when unused leave must be paid out and what employers should check before processing a final pay.<\/p>\n<h2 id=\"title-idx-0\" class=\"icon-anchor\">What is long service leave in Australia?<\/h2>\n<p><strong>Long service leave (LSL) is a period of paid leave that an employee may earn after a long period of continuous service with the same employer or a related employer where the applicable law recognises that service.<\/strong><\/p>\n<p>Unlike annual leave, long service leave does not follow one uniform national accrual rule. State and territory legislation sets many employees&#8217; entitlements, while certain award-derived entitlements, enterprise agreements, public-sector arrangements and portable industry schemes can produce different outcomes.<\/p>\n<p>The Fair Work Ombudsman explains the interaction between state and territory laws, pre-modern awards and enterprise agreements <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.fairwork.gov.au\/tools-and-resources\/fact-sheets\/minimum-workplace-entitlements\/long-service-leave\">here<\/a><\/span>.<\/p>\n<p>For payroll purposes, an employee&#8217;s location alone may not settle the question. Employers should confirm the applicable industrial instrument and whether the employee is covered by a special long service leave scheme.<\/p>\n<h2 id=\"title-idx-1\" class=\"icon-anchor\">Long service leave by state: How much leave do employees receive?<\/h2>\n<p>The usual full entitlement after the qualifying service period ranges from approximately 6.07 weeks after seven years in Victoria and the ACT to 13 weeks after ten years in South Australia and the Northern Territory.<\/p>\n<p>The table below summarises the standard long service leave position for many private-sector employees. It is a starting point for checking entitlements, not a substitute for the legislation and industrial instruments that apply to an individual employee.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><strong>State or territory<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>When leave can generally be taken<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>Usual entitlement<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>Pro-rata payout before the full qualifying period<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>New South Wales (NSW)<\/strong><\/td>\n<td style=\"text-align: center;\">After 10 years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">8.67 weeks (two months); another 4.33 weeks for each further five years<\/td>\n<td style=\"text-align: center;\">May be payable after five years in specified circumstances<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Victoria<\/strong><\/td>\n<td style=\"text-align: center;\">After seven years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">One week for every 60 weeks of continuous employment, about 6.07 weeks after seven years<\/td>\n<td style=\"text-align: center;\">Accrued unused leave is payable when employment ends after seven years<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Queensland<\/strong><\/td>\n<td style=\"text-align: center;\">After 10 years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">8.67 weeks; another 4.33 weeks for each further five years<\/td>\n<td style=\"text-align: center;\">May be payable after seven years in specified circumstances<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Western Australia (WA)<\/strong><\/td>\n<td style=\"text-align: center;\">After 10 years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">8.67 weeks; another 4.33 weeks for every further five years<\/td>\n<td style=\"text-align: center;\">Employees may qualify for a payout when employment ends after seven years<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>South Australia (SA)<\/strong><\/td>\n<td style=\"text-align: center;\">After 10 years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">13 weeks; 1.3 weeks for each additional year<\/td>\n<td style=\"text-align: center;\">Pro-rata payment is generally available after seven years, subject to statutory exclusions<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Australian Capital Territory (ACT)<\/strong><\/td>\n<td style=\"text-align: center;\">Generally after seven years under the applicable standard rules<\/td>\n<td style=\"text-align: center;\">About 6.07 weeks after seven years<\/td>\n<td style=\"text-align: center;\">May be payable after five years in specified circumstances<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Tasmania<\/strong><\/td>\n<td style=\"text-align: center;\">After 10 years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">8.67 weeks; another 4.33 weeks for each further five years<\/td>\n<td style=\"text-align: center;\">May be payable after seven years in specified circumstances<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>Northern Territory (NT)<\/strong><\/td>\n<td style=\"text-align: center;\">After 10 years&#8217; continuous service<\/td>\n<td style=\"text-align: center;\">13 weeks; 1.3 weeks per year of service<\/td>\n<td style=\"text-align: center;\">May be payable after seven years in specified circumstances<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>Sources:<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.nsw.gov.au\/employment\/rights-responsibilities\/leave\/long-service-leave\"> NSW Government<\/a>,<a style=\"color: #3366ff;\" href=\"https:\/\/www.vic.gov.au\/long-service-leave\"> Victorian Government<\/a>,<a style=\"color: #3366ff;\" href=\"https:\/\/www.business.qld.gov.au\/running-business\/employing\/legal-obligations\/long-service-leave\/entitlements\"> Business Queensland<\/a>,<a style=\"color: #3366ff;\" href=\"https:\/\/www.wa.gov.au\/organisation\/private-sector-labour-relations\/overview-of-long-service-leave-wa\"> WA Government<\/a>,<a style=\"color: #3366ff;\" href=\"https:\/\/www.safework.sa.gov.au\/workers\/wages-and-conditions\/long-service-leave\/accruing-leave\"> SafeWork SA<\/a>,<a style=\"color: #3366ff;\" href=\"https:\/\/www.worksafe.act.gov.au\/laws-and-compliance\/long-service-leave\"> WorkSafe ACT<\/a>,<a style=\"color: #3366ff;\" href=\"https:\/\/www.worksafe.tas.gov.au\/topics\/laws-and-compliance\/long-service-leave\"> WorkSafe Tasmania<\/a> <\/span>and<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/nt.gov.au\/employ\/for-employees-in-nt\/holidays-and-leave\/long-service-leave\"> NT Government<\/a><\/span>.<\/em><\/p>\n<p>The most important distinction is between earning an entitlement, becoming eligible to take the leave and qualifying for a payout when employment ends. Those milestones do not always occur at the same point.<\/p>\n<h2 id=\"title-idx-2\" class=\"icon-anchor\">Long service leave NSW: Entitlement and payout rules<\/h2>\n<p>Under the usual NSW rules, employees receive two months of paid long service leave after ten years of continuous service, with a further month for each additional five years.<\/p>\n<p>Two months is commonly expressed as approximately 8.67 weeks. At 15 years, an employee generally becomes entitled to an additional 4.33 weeks, bringing the total entitlement for that period to approximately 13 weeks.<\/p>\n<p>The<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.nsw.gov.au\/employment\/rights-responsibilities\/leave\/long-service-leave\"> NSW Government&#8217;s long service leave guidance<\/a><\/span> sets out both the full entitlement and the conditions for a pro-rata payment.<\/p>\n<h3>Can long service leave be paid out after five years in NSW?<\/h3>\n<p>Sometimes. An employee with between five and ten years of continuous service may qualify for a pro-rata payout if employment ends for a qualifying reason.<\/p>\n<p>Examples include termination by the employer for a reason other than serious and wilful misconduct, resignation because of illness or a qualifying domestic or other pressing necessity, or the employee&#8217;s death.<\/p>\n<p>After ten years of continuous service, the employee generally has an entitlement to payment of accrued unused long service leave when employment ends, regardless of the ordinary reason for termination.<\/p>\n<p>Employers should confirm the relevant statutory conditions before processing the payout. A resignation after eight years does not automatically create a pro-rata entitlement in NSW.<\/p>\n<h2 id=\"title-idx-3\" class=\"icon-anchor\">Long service leave Victoria: Accrual after seven years<\/h2>\n<p><strong>In Victoria, long service leave accrues at one week for every 60 weeks of continuous employment, and employees can generally take it after seven years with one employer.<\/strong><\/p>\n<p>This equates to approximately 0.8667 weeks of leave per year. The entitlement applies to most full-time, part-time, casual, seasonal and fixed-term employees whose service meets the statutory continuity requirements.<\/p>\n<p>The Victorian Government provides a<a href=\"https:\/\/www.vic.gov.au\/long-service-leave\"><span style=\"color: #3366ff;\"> long service leave guide<\/span><\/a> and a calculator to help employees check their accrued entitlement.<\/p>\n<h3>How much long service leave does a Victorian employee earn in 7.5 years?<\/h3>\n<p>An employee with seven years and six months of continuous employment has worked approximately 390 weeks.<\/p>\n<p>Under the Victorian accrual formula:<\/p>\n<p>390 weeks \u00f7 60 = <strong>6.5 weeks of long service leave<\/strong><\/p>\n<p>If the employee leaves the business after seven years or more, accrued unused leave must generally be paid out regardless of whether the employee resigns, is dismissed or is made redundant.<\/p>\n<p>For an illustrative calculation, if an employee&#8217;s applicable ordinary weekly pay is $1,500 and they have 6.5 weeks of unused leave, the indicative gross payout is:<\/p>\n<p>6.5 \u00d7 $1,500 = <strong>$9,750<\/strong><\/p>\n<p>The actual amount payable depends on the employee&#8217;s pay arrangements and the relevant statutory calculation rules. Employers should not substitute a flat weekly-rate calculation where the applicable law requires a different method.<\/p>\n<h2 id=\"title-idx-4\" class=\"icon-anchor\">Long service leave Queensland: Ten years and pro-rata termination payments<\/h2>\n<p><strong>Queensland employees generally become entitled to 8.6667 weeks of long service leave after ten years of continuous service. A further 4.3333 weeks becomes available after each additional five years.<\/strong><\/p>\n<p>Under the Queensland rules, an employee with seven to ten years of continuous service may qualify for a pro-rata payment if employment ends for a specified reason.<\/p>\n<p>The<a href=\"https:\/\/www.business.qld.gov.au\/running-business\/employing\/legal-obligations\/long-service-leave\/entitlements\"><span style=\"color: #3366ff;\"> Business Queensland long service leave guidance<\/span><\/a> identifies qualifying circumstances, including certain dismissals, illness or incapacity, pressing domestic necessity and death.<\/p>\n<h3>How are casual and part-time employees treated in Queensland?<\/h3>\n<p>Casual and regular part-time employees can qualify for long service leave. Their entitlement must reflect their relevant service and ordinary hours rather than assuming every employee has worked a standard 38-hour week throughout the entire period.<\/p>\n<p>This is particularly important when an employee changes from casual to part-time or full-time work during their service. Employers should preserve the historical hours and pay records needed to calculate the entitlement.<\/p>\n<h2 id=\"title-idx-5\" class=\"icon-anchor\">Long service leave WA: Entitlement and payout on resignation<\/h2>\n<p><strong>In Western Australia, employees generally become entitled to take 8.667 weeks of long service leave after ten years of continuous employment, with a further 4.333 weeks for every additional five years.<\/strong><\/p>\n<p>The standard rules cover many full-time, part-time, casual and seasonal employees in the WA state industrial relations system. However, coverage needs to be verified because not every WA employee falls under the same industrial relations regime.<\/p>\n<p>WA also allows an employee to receive a pro-rata long service leave payment when employment ends after seven years of continuous employment, subject to the applicable rules.<\/p>\n<p>The<a href=\"https:\/\/www.wa.gov.au\/organisation\/private-sector-labour-relations\/overview-of-long-service-leave-wa\"><span style=\"color: #3366ff;\"> WA Government&#8217;s overview of long service leave<\/span><\/a> and its<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.wa.gov.au\/organisation\/private-sector-labour-relations\/long-service-leave-when-employment-ends\"> guide to payment when employment ends<\/a><\/span> explain the entitlement and calculation.<\/p>\n<h3>How is a WA long service leave payout calculated?<\/h3>\n<p>The payment depends on the employee&#8217;s accrued entitlement and ordinary pay. In WA, ordinary pay is based on the employee&#8217;s normal weekly hours and ordinary time rate, with particular rules for employees whose remuneration includes commissions or variable hours.<\/p>\n<p>For a casual employee, ordinary pay includes the casual loading. Shift premiums, overtime rates, penalty rates and allowances are generally excluded from the ordinary-pay definition.<\/p>\n<p>Where an employee&#8217;s hours or remuneration have changed, a payroll team should use the relevant accrual-period records and the WA rules rather than simply multiplying their latest hourly rate by a rough estimate of weeks.<\/p>\n<h2 id=\"title-idx-6\" class=\"icon-anchor\">Long service leave SA: Why the entitlement is different<\/h2>\n<p><strong>South Australian employees generally receive 13 weeks of long service leave after ten years of continuous service, which is more than the usual initial entitlement in NSW, Queensland, WA and Tasmania.<\/strong><\/p>\n<p>For each subsequent year of service, an employee generally accrues a further 1.3 weeks of long service leave. These rules apply across full-time, part-time and casual employment, subject to the relevant statutory conditions.<\/p>\n<p>The<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.safework.sa.gov.au\/workers\/wages-and-conditions\/long-service-leave\/accruing-leave\"> SafeWork SA guide to accruing leave<\/a><\/span> explains the full entitlement and its relationship to continuous service.<\/p>\n<h3>Can long service leave be paid out after seven years in SA?<\/h3>\n<p>Yes, a pro-rata payment is generally available when employment ends after seven years but before the ten-year qualifying point, subject to statutory exclusions.<\/p>\n<p>For an employee who qualifies, the pro-rata entitlement is calculated at 1.3 weeks for each completed year of service.<\/p>\n<p>For example, an employee leaving after eight completed years would have a pro-rata entitlement of:<\/p>\n<p>8 \u00d7 1.3 weeks = <strong>10.4 weeks<\/strong><\/p>\n<p>If the employee&#8217;s applicable weekly pay were $1,200, the illustrative gross amount would be $12,480 before any required tax treatment, provided the employee satisfies the statutory eligibility conditions and has not already taken any of that entitlement.<\/p>\n<h2 id=\"title-idx-7\" class=\"icon-anchor\">Long service leave in the ACT, Tasmania and Northern Territory<\/h2>\n<p><strong>The ACT, Tasmania and the Northern Territory also have distinct long service leave rules, so employers should not use one state&#8217;s calculation method for every Australian employee.<\/strong><\/p>\n<h3>ACT<\/h3>\n<p>The standard ACT entitlement is approximately 6.07 weeks after seven years of service. The applicable rules can differ for employees covered by awards, agreements or portable long service leave arrangements.<\/p>\n<p>See<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.worksafe.act.gov.au\/laws-and-compliance\/long-service-leave\"> WorkSafe ACT&#8217;s long service leave guidance<\/a><\/span> to confirm which law applies. The ACT also operates portable schemes for eligible industries including construction, cleaning, community services and security.<\/p>\n<h3>Tasmania<\/h3>\n<p>Tasmanian employees generally receive 8\u2154 weeks after ten years of continuous employment, with a further 4\u2153 weeks for every additional five years.<\/p>\n<p>A pro-rata payment after seven years may be available in certain circumstances, but it is not automatic. The reason employment ends and the employee&#8217;s circumstances matter.<\/p>\n<p>Refer to<a href=\"https:\/\/www.worksafe.tas.gov.au\/topics\/laws-and-compliance\/long-service-leave\"><span style=\"color: #3366ff;\"> WorkSafe Tasmania&#8217;s long service leave guidance<\/span><\/a>.<\/p>\n<h3>Northern Territory<\/h3>\n<p>Employees covered by the standard NT long service leave legislation may become eligible for 13 weeks after ten years of continuous service. The entitlement is calculated at 1.3 weeks for each year of employment.<\/p>\n<p>A pro-rata payment after seven years is available only in specified circumstances. The NT Government also explains how leave is calculated, when it can be taken and what happens when employment ends.<\/p>\n<p>See the<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/nt.gov.au\/employ\/for-employees-in-nt\/holidays-and-leave\/long-service-leave\"> Northern Territory Government&#8217;s long service leave guide<\/a><\/span>.<\/p>\n<h2 id=\"title-idx-8\" class=\"icon-anchor\">How does long service leave accrue?<\/h2>\n<p><strong>Long service leave accrues through qualifying continuous service, but the method and timing of access depend on the applicable state or territory rules.<\/strong><\/p>\n<p>In many states, the full entitlement is 8.667 weeks after ten years. South Australia and the Northern Territory generally provide 13 weeks after ten years, while Victoria and the ACT have an earlier seven-year threshold.<\/p>\n<p>Employers should record the employee&#8217;s service history, including relevant changes in employment status and ordinary working hours. This is especially important for casual employees, whose hours may vary substantially between pay periods.<\/p>\n<p>Changes in business ownership can also affect continuity of service. Where an employee continues working for a business following a transfer, previous service may be recognised under the applicable rules.<\/p>\n<h2 id=\"title-idx-9\" class=\"icon-anchor\">What counts as continuous service for long service leave?<\/h2>\n<p><strong>Continuous service is assessed under the law that applies to the employee; it does not always mean working an unchanged roster without any absence.<\/strong><\/p>\n<p>Paid leave, certain unpaid absences, changes in hours and changes in employment status may be treated differently under different laws. A casual employee may qualify where their employment history meets the relevant continuity requirements.<\/p>\n<p>Before resetting an employee&#8217;s long service leave balance, employers should determine whether the break in service legally ends continuity. Do not assume that a change from casual to permanent work automatically starts a new service period.<\/p>\n<p>For businesses operating in multiple states, the HR system should retain the employee&#8217;s original commencement date and a documented record of any service adjustments.<\/p>\n<h2 id=\"title-idx-10\" class=\"icon-anchor\">How is a long service leave payout calculated?<\/h2>\n<p><strong>A long service leave payout is generally based on the employee&#8217;s accrued but unused entitlement and the pay rules that apply in their jurisdiction.<\/strong><\/p>\n<p>The calculation normally needs to account for:<\/p>\n<ol>\n<li>The employee&#8217;s total qualifying continuous service.<\/li>\n<li>The entitlement accumulated under the applicable law.<\/li>\n<li>Any long service leave already taken.<\/li>\n<li>The reason employment has ended and whether the employee qualifies for a pro-rata payment.<\/li>\n<li>The applicable method for determining ordinary pay.<\/li>\n<\/ol>\n<p>A simple payout formula is useful for an initial estimate, but it should not replace the state-specific rules. The relevant pay rate may depend on ordinary hours, casual loading, commissions or other remuneration components.<\/p>\n<p>The Fair Work Ombudsman&#8217;s <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.fairwork.gov.au\/leave\/long-service-leave\/payment-of-long-service-leave\" target=\"_blank\" rel=\"noopener\">guide<\/a><\/span> also explains the broad approach to pay rates and termination payments. The relevant state authority should be consulted for the precise calculation.<\/p>\n<h3>Is unused long service leave paid out when employment ends?<\/h3>\n<p>Unused long service leave generally must be paid out when employment ends once the employee has an entitlement, but the exact rules depend on the applicable jurisdiction and circumstances.<\/p>\n<p>The point at which pro-rata leave becomes payable varies. NSW, for example, can allow a pro-rata payment after five years in specified situations. Victoria generally requires payment of accrued leave when employment ends after seven years. Other jurisdictions have their own eligibility criteria.<\/p>\n<p>Employers should not automatically pay or deny a pro-rata entitlement based solely on years of service. Check the applicable legislation and reason for termination first.<\/p>\n<h3>Can an employee cash out long service leave without leaving their job?<\/h3>\n<p>Long service leave is intended to provide a period of leave rather than an ordinary cash alternative. Some laws and enterprise agreements allow limited exceptions, but employers should not just assume that cashing out is permitted.<\/p>\n<h2 id=\"title-idx-11\" class=\"icon-anchor\">How should employers manage long service leave balances?<\/h2>\n<p><strong>The safest approach is to maintain accurate service records and apply the correct jurisdiction-specific rules whenever an employee&#8217;s circumstances change or a payout is required.<\/strong><\/p>\n<p>A practical long service leave review should include:<\/p>\n<ul>\n<li>The employee&#8217;s original service date and any relevant service continuity adjustments.<\/li>\n<li>The state or territory law and industrial instrument that apply.<\/li>\n<li>The employee&#8217;s employment type and ordinary working hours over time.<\/li>\n<li>Leave accrued, leave taken and any previous adjustments.<\/li>\n<li>Eligibility for a full or pro-rata entitlement.<\/li>\n<li>The applicable rate of pay and the final payout calculation, where relevant.<\/li>\n<\/ul>\n<p>Payroll teams should also review balances when an employee transfers between locations, changes from casual to permanent work, or leaves the business. These are common points at which historical information can be lost or incorrect assumptions can affect the final entitlement.<\/p>\n<p>Our<a href=\"https:\/\/www.workstem.com\/au\/blog\/how-to-calculate-leave-and-termination-payments-final-pay\/\">\u00a0<span style=\"color: #3366ff;\">final pay calculation guide<\/span><\/a> covers the wider process for handling termination entitlements.<\/p>\n<h2 id=\"title-idx-12\" class=\"icon-anchor\">Final checklist for long service leave compliance<\/h2>\n<p>Before approving a long service leave request or payout, confirm that the employee&#8217;s service history is correct, the appropriate law or enterprise agreement or award has been identified and the calculation method matches the relevant jurisdiction.<\/p>\n<p>Where a pro-rata payment is requested, ensure the minimum service period and the reason employment ended. If the business has operated across states, changed ownership or employed the worker under a portable scheme, obtain advice before finalising an uncertain entitlement.<\/p>\n<p>Correct payroll processing depends on applying the right rules to the employee&#8217;s actual service and employment circumstances.<\/p>\n<h2 id=\"title-idx-13\" class=\"icon-anchor\">Frequently asked questions<\/h2>\n<ol>\n<li><strong> How many years do you need to work to get long service leave in Australia?<\/strong><\/li>\n<\/ol>\n<p>The usual qualifying period is seven or ten years, depending on the state or territory and applicable instrument. Victoria and the ACT generally have a seven-year entitlement threshold; many other jurisdictions provide the full entitlement after ten years.<\/p>\n<ol start=\"2\">\n<li><strong> How much long service leave do you get after ten years?<\/strong><\/li>\n<\/ol>\n<p>In many jurisdictions, the usual entitlement after ten years is approximately 8.67 weeks. South Australia and the Northern Territory generally provide 13 weeks after ten years. The ACT and Victoria have different qualifying periods and accrual methods.<\/p>\n<ol start=\"3\">\n<li><strong> Can long service leave be paid out after five years in NSW?<\/strong><\/li>\n<\/ol>\n<p>A pro-rata payout may be available after five years of continuous service in NSW, but only in specified circumstances. An employee should check the reason employment ended and the applicable statutory conditions.<\/p>\n<ol start=\"4\">\n<li><strong> Can long service leave be paid out after seven years?<\/strong><\/li>\n<\/ol>\n<p>In several jurisdictions, a pro-rata payout may be available after seven years, but the rules differ. Victoria generally requires accrued unused leave to be paid when employment ends after seven years. Queensland, Tasmania and the Northern Territory have specified conditions for pro-rata payouts.<\/p>\n<ol start=\"5\">\n<li><strong> Does long service leave accrue for casual employees?<\/strong><\/li>\n<\/ol>\n<p>Yes, casual employees can qualify for long service leave where they meet the applicable continuity-of-service and other statutory requirements. Their entitlement may need to reflect historical ordinary hours and the relevant casual pay rules.<\/p>\n<ol start=\"6\">\n<li><strong> Is long service leave paid at the ordinary hourly rate?<\/strong><\/li>\n<\/ol>\n<p>The applicable pay calculation depends on the state or territory. Ordinary pay often excludes overtime, but rules differ on casual loading, commissions, allowances and other remuneration. Employers should use the relevant state authority&#8217;s calculation method.<\/p>\n<ol start=\"7\">\n<li><strong> Can long service leave be cashed out while an employee remains employed?<\/strong><\/li>\n<\/ol>\n<p>Long service leave is intended to be taken as leave. Some laws and industrial instruments permit specific exceptions, so the employer must check whether cashing out is legally permitted in the particular circumstances.<\/p>\n<ol start=\"8\">\n<li><strong> Does an employee receive long service leave after a business changes ownership?<\/strong><\/li>\n<\/ol>\n<p>A transfer of business may preserve the employee&#8217;s previous service, depending on the applicable law and the nature of the transaction. Employers should confirm the relevant continuity-of-service rules rather than automatically resetting the employee&#8217;s commencement date.<\/p>\n<h2 id=\"title-idx-14\" class=\"icon-anchor\">Read more<\/h2>\n<h3 id=\"title-idx-9\" class=\"icon-anchor\">Leave Entitlements Guide<\/h3>\n<p><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/long-service-leave-guide\/\">The Ultimate Guide to Long Service Leave<\/a><\/em><\/span><\/p>\n<p class=\"page-title\"><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/annual-leave-calculator-australia-entitlements-accrual-2026-guide\/\">Annual Leave Australia in 2026: Entitlements &amp; Accrual<\/a><\/em><\/span><\/p>\n<header class=\"entry-header\">\n<p class=\"page-title\"><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/annual-leave-sick-leave-pay-calculations\/\">Annual Leave &amp; Sick Leave Pay Calculations<\/a><\/em><\/span><\/p>\n<\/header>\n<p><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/glossary\/annual-leave-loading\/\" target=\"_blank\" rel=\"noopener\">Annual Leave Loading<\/a><\/em><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/glossary\/sick-and-carers-leave\/\" target=\"_blank\" rel=\"noopener\">Sick and Carer\u2019s Leave<\/a><\/em><\/span><\/p>\n<h3 id=\"title-idx-10\" class=\"icon-anchor\">HR Insights &amp; Resources<\/h3>\n<p class=\"page-title\"><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/how-to-calculate-leave-and-termination-payments-final-pay\/\">Final Pay in Australia: How to Calculate Leave and Termination Payments<\/a><\/em><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/leave-management-software-vs-excel\/\" target=\"_blank\" rel=\"noopener\">Leave Management Software vs. Excel: Which is More Effective?<\/a><\/em><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/leave-management-software-goodbye-excel\/\" target=\"_blank\" rel=\"noopener\">Discover the Benefits of Leave Management Software: Say Goodbye to Excel!<\/a><\/em><\/span><\/p>\n<p><span style=\"color: #3366ff;\"><em><a style=\"color: #3366ff;\" href=\"https:\/\/www.workstem.com\/au\/blog\/how-to-calculate-leave-entitlements-casual-employees\/\" target=\"_blank\" rel=\"noopener\">How to Calculate Leave Entitlements for Casual Workers?<\/a><\/em><\/span><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Table of content What is long service leave in Australia?Long service leave by state: How much leave do employees receive?Long service leave NSW: Entitlement and payout rulesLong service leave Victoria: Accrual after seven yearsLong service leave Queensland: Ten years and pro-rata termination paymentsLong service leave WA: Entitlement and payout on resignationLong service leave SA: Why&#8230;<\/p>\n","protected":false},"author":16,"featured_media":3503,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[41,45,46,42],"class_list":["post-3473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-all","tag-leave","tag-payroll","tag-popular"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Long Service Leave by State: Rules &amp; 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