Long Service Leave

Long Service Leave

What is Long Service Leave?

The NSW Long Service Leave Act 1955 provides that full-time, part-time & casual workers in NSW are entitled to be paid long service leave after working for an unbroken period of 10 years.

Who is NOT covered by this Act?

Workers who are:

  • Covered by long service provisions in a NSW award or agreement more favourable than those in an Act;
  • Covered by long service leave provisions in any other Act or federal award
  • Employed by an employer exempted by the NSW Industrial Relations Commission from having to provide long service leave.

What is the long service leave entitlement provided by this Act?

Two months paid leave after 10 years service (see below) with one employer & 1 month paid leave for each additional 5 years service. Leave entitlements accrue pro rata on a daily basis for the first 15 years. After 15 years of service, only full years of service are taken into account for accrual purposes.

Is there an entitlement for less than 10 years' service?

Yes. A worker who has completed 5 years of service as an adult, or has received adult rates of pay, is entitled to a pro rata payment if he/she:

  • Resigns as a result of illness, incapacity, domestic or other pressing necessity;
  • Is dismissed for any reason except serious & wilful misconduct; or
  • Dies.

What service with an employer qualifies for long service leave?

There needs to be continuous service with an employer. If the business is sold & continues as the same business, & the worker is employed in that business, the continuity is not considered to be broken.

How is the long service leave paid?

Long service leave is paid at the ordinary pay rate which has been paid to a worker prior to taking leave or an average of the last 5 years ordinary pay earnings, whichever is greater.
The employer may pay the worker in full when leave commences, in instalments on the usual pay days or under another agreed arrangement.

What is Ordinary pay?

Ordinary pay is the workers ordinary time rate of pay plus an average of any bonus, commission or other incentive payments paid over the last 12 months or the last 5 years, whichever is greater. Shift work, other penalty rates & overtime payments are not included.

How is long service leave paid on termination?

After 10 years of continuous service, the worker is entitled to receive a payment calculated in accordance with any long service leave entitlement, or on a pro rata basis where an entitlement exists after less than 10 years service.

How can long service leave be taken?

In one continuous period of leave or, if the worker & employer agree:

  • Where the leave due is 2 months - in 2 separate periods
  • Where the leave due is between 2 months and 19 ½ weeks -in 2 or 3 separate periods
  • Where the leave exceeds 19 ½ weeks - 2,3 or 4 separate periods.

Can a worker be paid for the value of their long service leave?

No. The long service entitlement must be taken as leave.

When can long service leave be taken?

When a worker becomes eligible for long service leave, an employer is required to grant it as soon as practicable. One months notice should be given by the employer. If both parties agree, leave may be postponed to a mutually convenient date.

Can long service leave be taken in advance?

Yes. If both the employer & worker agree, not less than 1 months leave may be taken in advance

What happens if a public holiday occurs during long service leave?

An extra day must be included in the long service leave.