What is the entitlement?
NSW: 2 months leave after 10 years of continuous service. 1 months leave for each subsequent 5 years of service.
VIC: Employees employed from 1 January 2006 entitled to 8.66 weeks leave after 10 years of continuous service.
Employees employed prior to 1 January 2006 are entitled to 13 weeks leave on full pay after 15 years and are entitled to further leave of 4.3 weeks after each subsequent 5 years continuous service.
SA: Employee who has completed 10 years of service is entitled to 13 weeks of leave and entitled to 1.3 weeks leave for each completed year thereafter.
QLD: Entitled to 8.6667 weeks of leave after each period of 10 years continuous service. Cashing out of leave is allowed by agreement under award and between employer and employee, must be in writing and signed by both parties.
WA: Entitled to 8 2/3 weeks of paid leave after 10 years of continuous service. For every 5 years of continuous service after this initial 10 years, employees entitled to another 4 1/3 weeks paid leave.
NT: Entitled to 13 weeks after 10 years of continuous service. A further 6.5 weeks leave after each additional 5 years of continuous service.
ACT: Entitled to 6.0667 weeks paid leave after completion of 7 years continuous service. For each subsequent year of continuous service, the employee accrues a further 1/5 of a month of long service leave.
When is pro rata leave paid?
VIC: After 7 years of service on termination for any reason other than serious or wilful misconduct.
SA: Between 7 and 10 years of service entitled to 1.3 weeks leave for each completed year unless terminated on the grounds of serious & wilful misconduct or unlawfully by the employee.
QLD: Employees who have completed 7 but less than 10 years’ continuous service are entitled to pro-rata long service leave only if the primary reason for the termination falls within the following criteria:
- The employee's service is terminated by their death.
- The employee terminates their service because of their illness or incapacity or because of a domestic or other pressing necessity.
- The employer dismisses the employee for a reason other than the employee's conduct, capacity or performance.
- The employer unfairly dismisses the employee.
WA: Between 7 and 10 years of continuous service unless terminated for serious misconduct.
NT: If an employee chooses to resign from their position and have completed less than 10 years of service they are not entitled to pro-rata payment of LSL. However, under certain circumstances, they are entitled to receive payment in lieu for pro-rata LSL at 1.3 weeks for each completed year of service if they have between 7 and 10 years of continuous service if terminated under the following circumstances:
Employee is retiring
Employer terminates for any reason other than serious misconduct
Employee has an illness, incapacity or domestic or other pressing necessity which prevents them from being able to work.
ACT: Entitled between 5 and 7 years of continuous service when terminated under the following circumstances:
By employee because of illness or incapacity or a domestic or other pressing necessity.
Employee is retiring
Employee dies
By employer, for any other reason than serious and wilful misconduct.
How do you calculate the rate of pay if the rate and/or hours have varied over the course of their employment?
NSW: The ordinary pay for the leave is calculated by dividing by five the total amount of salary or wages paid to the employee in the five years preceding the leave. This means the employee’s rate of pay is the weekly average of 4 ½ years' full-time pay and six months' part-time pay.
VIC: When an employee’s hours vary over their employment, the hours calculated for LSL will be averaged over the preceding 12 months, or the preceding 5 years, whichever is the greater.
SA: If employees hours varied during all or some of the three years immediately preceding a payment for long service leave, then their ordinary weekly wage is calculated by averaging the number of hours worked per week in that period of three years, and multiplying that result by the worker’s hourly rate at the time of taking leave or employment termination.
QLD: Varied hours of employment are calculated by dividing the total ordinary hours worked during the period of service by 52 and multiplying this amount by 8.6667/10.
WA: To calculate the long service leave entitlement for an employee with varying hours, the hours the employee has worked per week are averaged for the period of employment during which the long service leave accrued.
NT: When employee’s hours have varied over the course of employment. The employee is paid at their current weekly rate of pay and the average number of weekly hours worked by the employee.
ACT: For part-time & casual employees – average number of weekly hours worked during previous 12 months.
Can we direct our employee to take long service leave if they don’t want to?
NSW: Yes, the employer must give 1 months’ written notice.
VIC: Yes, the employer must give at least 3 months’ written notice.
SA: Yes, employer must give 60 days’ written notice.
QLD: Yes, employer must give at least 3 months’ notice requiring the employee to take at least 4 weeks leave.
WA: Yes, the employer must give 1 month’s written notice.
NT: Yes, the employer must give at least 2 months’ written notice.
ACT: Yes, the employer must give at least 60 days written notice.