Long service leave

How does long service leave accrue?

Unlike almost every other entitlement, LSL is not national. Each state and territory sets its own scheme, and while the common shape is roughly two months' paid leave after ten years of continuous service, the details diverge: several jurisdictions allow leave or pro-rata payout from around seven years, accrual rates differ, and the treatment of casuals and seasonal workers differs too. The state where the employee works decides the rules, which matters for businesses operating across borders.

What counts as continuous service?

Generally, service with one employer including approved unpaid leave and, in many schemes, service that survives a transfer of business. Resignation usually forfeits the entitlement before the pro-rata access point; redundancy, death or (in several states) resignation due to illness or domestic necessity can preserve a pro-rata payout earlier. Untaken LSL is paid out on termination once the qualifying threshold is met.

What are portable schemes?

Some industries where workers move between employers frequently run portable LSL schemes, funded by employer levies, so service accrues with the industry rather than a single employer. Construction is the long-standing example, and several states have added schemes for community services, security and contract cleaning.