What is long service leave in Australia?

Long service leave (LSL) is a uniquely Australian (and New Zealand) entitlement — a period of paid leave awarded to employees who have served with the same employer for a long period, typically 10 years. It reflects the historical expectation that long-serving employees need an extended break. LSL is separate from annual leave and cannot be substituted for it.

The entitlement and qualifying period vary by state and territory. In most states, the general entitlement is 8.67 weeks' leave after 10 years of continuous service (equivalent to 1/60th of service). Some states (Victoria, NSW) allow pro-rata LSL after 7 years of service if employment ends (other than by resignation before 7 years).

LSL applies to employees and (in some states) certain types of contractors. It must be taken as a continuous period (or in some states, by agreement in smaller blocks). On termination, employees entitled to LSL must be paid out the monetary equivalent. Entitlements are set by state legislation — the National Employment Standards in the Fair Work Act provide only a minimal override for the most basic situations.