The entitlement to long service leave is based on a qualifying period of continuous service.

Employees are entitled to take 8.6667 weeks of paid long service leave after a period of 10 years' continuous service.

When an employee has completed their first 10 years' of continuous service, they are entitled to take an additional 4.3333 weeks' paid long service leave once they have completed a further 5 years' continuous service. For continuous service beyond this point, access to further leave accrued is not subject to a qualifying period.

On termination of employment an employee may be entitled to receive a payment for the balance of any long service leave accrued.

Proportionate payment (pro-rata) of long service leave on termination of employment

Between 7 and 10 years' continuous service

Employees may have an entitlement to receive proportionate payment of long service leave on termination of employment after completing 7 years continuous service.

However, 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 because of a domestic or other pressing necessity.
• The employer dismisses the employee because of the employees illness*.
• The employer dismisses the employee for a reason other than the employee's conduct, capacity or performance.
• The employer unfairly dismisses the employee.

*Illness includes injury, incapacity or other medical condition.

More than 10 years' continuous service

An employee who has 10 or more years' continuous service, has an automatic entitlement to the payment of long service leave on termination of employment and this is not subject to the above listed criteria.

After the completion of 10 years' service, the entitlement for pro-rata long service leave is based on the employee's full period of continuous service. For example, an employee who had 12 years' service would be entitled to a payment of 10.4 weeks' long service leave (8.6667 + 1.73333 weeks).

Making a claim for long service leave

You may wish to submit a long service leave claim form if you believe you have not been paid correctly for long service leave.

Do you think you are entitled to a pro-rata payment for long service leave?

You may be entitled to a payment if:

• your employment has ended
• and
• you had been employed for at least 7 years with the same employer
• or you had more than 7 but less than 10 years' service and your employment ended for 1 of the reasons described above.

Full-time employees

Employees are entitled to take 8.6667 weeks of paid long service leave after a period of 10 years' continuous service.

Long service leave is paid at the ordinary rate (i.e. excluding overtime payments) being paid to the employee at the time of taking the leave. If an employee is paid above the award rate, the long service leave is to be paid at the higher rate.

Mixed employment status

Long service leave entitlements for employees who have had a mixture of employment status (full-time, casual or regular part-time) during their continuous service are calculated using the method outlined below. The total ordinary hours used in the calculation will include both the hours while employed as a full-time employee as well as those while employed as a casual or regular part-time employee.

Casual and regular part-time employees

The qualifying period for long service leave entitlements for casual or regular part-time employees is the same as that for full-time employees (i.e. leave is due after 10 years' continuous service).

The entitlement to long service leave is calculated as the number of ordinary hours for the complete period of employment divided by 52, multiplied by 8.6667, then divided by 10, as shown below:

• total ordinary hours worked ÷ 52 x 8.6667 ÷ 10 = number of hours long service leave.

Note: Whilst the number of ordinary hours will vary depending on length of service, the remainder of the formula does not change.

Casual employees

As from 30 March 1994, all continuous service of a casual employee is taken into account when calculating long service leave entitlements. However, the continuous service may end if the employment is broken by more than 3 months between the end of one employment contract and the start of the next.

A casual employee is entitled to be paid at their 'loaded' casual hourly rate.

Time and wages records to be kept on long service leave for all employees

As long service leave entitlements are based on continuous service, it is important that complete and accurate time and wages records are kept by the employer.

An employer is required to keep a record of the total number of ordinary hours worked by each casual employee from the start of the employee's service worked out to and including 30 June each year.

It is recommended that a similar record is also kept for part-time employees.

This record must be kept for a period of 6 years following termination of employment.

Continuous service

Continuous service refers to paid working time and paid leave.

Long service leave entitlements are based on continuous service with the same employer including instances where the Industrial Relations Act 2016 states that an employee's continuity of service is:

• taken to be with the same employer
• or
• not broken in certain circumstances.

Case law

Unpaid leave

A period of unpaid leave:

• may not break the continuity of service
• does not count as service
• includes the Australian Government Parental Leave Pay scheme.

Anniversary dates will need to be adjusted to reflect any period of unpaid leave.

Absences from work

Generally, the only absences from work which count as continuous service to determine a long service leave entitlement are periods of paid leave. Periods of absence on WorkCover may also count as continuous service to determine a long service leave entitlement.

Long service leave does not accumulate during unpaid parental leave but such leave does not break the continuity of service.

The long service leave entitlement is based on a period of continuous service. Continuity of service may be broken by certain absences from work which means time served prior to the absence will not be included when calculating future entitlements. However, an employee's continuity of service is not broken for the following reasons:

• absence from work on leave (paid or unpaid and for any length of time) granted by the employer, including such absences through illness or injury
• termination of the employee's service because of illness or injury, provided the employee is re-employed by the same employer (after any length of time) and the employee has not engaged in other work during the absence
• termination of the employee's employment if the employee is re-employed by the same employer within 3 months
• interruption or termination of an employee's service by the employer due to an industrial dispute or slackness in business or trade if the employee is re-employed by the same employer (after any length of time).

Also consider...

• Entitlements for long service leave are provided for in the Industrial Relations Act 2016.

Queensland has portable long service leave schemes for eligible workers in the building and construction, contract cleaning and the community services industries.

Employers in these industries are required to report service for eligible workers.

These schemes ensure that eligible workers can accumulate long service leave benefits even when they move between different employers within the same industry, providing fairness and continuity of entitlements.

When an employee works for the same employer for 10 years or more, the employer is legally obligated under the Industrial Relations Act 2016 (Qld) to pay the long service leave entitlement directly. In this situation, it is recommended the employer contacts Qleave to discuss reimbursement arrangements for the period already covered under the portable scheme.

To learn more about your obligations, visit QLeave Portable Long Service Leave Authority.

Transferred employees

The Industrial Relations Act 2016 provides for accumulated long service leave entitlements to transfer from one employer to another (e.g. when a business changes hands and the new employer continues to employ existing staff).

A transferred employee is entitled to all long service leave accumulated for the total period of their employment - including long service leave accumulated with the previous employer. This provision is not negotiable.

Long service leave entitlements also transfer if an employee is dismissed at the time the business changes hands or within the preceding month and is then employed by the new employer within 3 months.

Taking long service leave

The taking of long service leave should be agreed between an employer and employee. Long service leave can be taken for any duration as agreed by the employer.

Where an agreement can't be reached, the employer can, with at least 3 months' written notice, require an employee to take at least 4 weeks long service leave.

Public holidays that fall within a period of long service leave

Long service leave is exclusive of public holidays. Therefore, during a period of long service leave, any public holidays falling on a day on which an employee ordinarily works must be added to the leave.

Long service leave and other leave entitlements

Long service leave will continue to accrue whilst an employee is on paid sick, annual or long service leave.

Enquiries regarding annual and sick leave entitlements for private sector employees should be directed to the Fair Work Ombudsman on 13 13 94.

'Cashing in' long service leave

Long service leave can only be cashed-in if:

• the award, enterprise agreement or certified agreement allows for cashing-in
• or
• the employee makes an application (Form 13) to the Queensland Industrial Relations Commission (the Commission) for an order. These applications may only be made for compassionate reasons or on the grounds of financial hardship and can only be made once the employee has qualified for a leave entitlement.

The Commission may make an order for the payment to be made only if satisfied the payment should be made on compassionate grounds or on the ground of financial hardship.

Applications must be made on the QIRC's approved form (Form 13).

Time and wages records to be kept on long service leave

As long service leave entitlements are based on continuous service it is important complete and accurate time and wages records are kept by the employer.

An employer is required to keep a record of the total number of ordinary hours worked by each casual employee from the start of the employee’s service worked out to and including 30 June each year.

It is recommended that a similar record is also kept for part-time employees.

This record must be kept for a period of 6 years following termination of employment.

Also consider...

• Read the Industrial Relations Act 2016.

Payment for long service leave

Long service leave is paid at the current ordinary rate (i.e. excluding overtime payments) for the period of the leave. If an employee is paid above the award rate, the long service leave must be paid at the higher rate.

Casual employees are entitled to be paid at the loaded casual hourly rate.

No leave loading is payable on long service leave.

Enquiries regarding superannuation payments and tax on long service leave should be directed to the Australian Taxation Office on 13 10 20 (superannuation) and 13 28 66 (tax).

Making a claim for long service leave

You may wish to submit a long service leave claim form if you believe you have not been paid correctly for long service leave.

Calculating long service leave entitlements – full-time employees

Use this table to calculate long service leave entitlements and pro-rata long service leave payable on termination of employment.

PLUS

Entitlement for completed weeks and days of service

Using these tables

An employee who has a period of continuous service of 18 years, 3 months, 2 weeks and 2 days would be entitled to access 15.8548 weeks leave.

Total of:

Examples – Payment for long service leave on termination

Examples – Accessing long service leave

Employees paid on commission

If an employee is entitled to receive an amount representing commission in the employee's long service leave payment, the Industrial Relations Act 2016 requires an employer to pay the default average commission unless:

• a relevant award/agreement or contract of employment otherwise provides
• or
• the Queensland Industrial Relations Commission, upon application, considers the default average commission would not represent a fair amount in the circumstances. The Act defines default average commission as
  • the total commissions payable to the employee in the 1 year before the leave is taken
  • divided by 52.179
  • multiplied by the number of weeks leave for which payment is being made.

Calculating long service leave entitlements - casual and regular part-time employees

Find out how to calculate long service leave entitlements for casual and regular part-time employees.