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Long service leave in Queensland
For long service leave enquiries, contact the Industrial Relations infoline on (07) 3406 9999.
Long service leave is a period of paid leave granted to employees in recognition of a long period of service with an employer.
Employers and employees, with the exception of state and local government, are covered by the national industrial relations system. However, where no entitlement to long service leave exists under the Federal system, an employee will have an entitlement in accordance with the Industrial Relations Act 2016.
The Industrial Relations Act 2016 provides long service leave entitlements for most employees in Queensland, including casual, regular part-time and seasonal employees subject to certain conditions.
This guide explains eligibility and different types of entitlements employees have to long service leave.
Long service leave entitlements and continuous service
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.
Period of continuous service | Long service leave entitlement |
---|---|
10 years | 8.6667 weeks |
After a further 5 years | A further 4.3333 weeks (total of 13 weeks) |
More than 15 years | Long service leave can be accessed as it accrues |
Less than 10 years | Possible pro-rata payment on termination |
Less than 7 years | No entitlement |
On termination of employment an employee may be entitled to receive a payment for the balance of any long service leave accrued. Refer to 'Proportionate payment (pro-rata) of long service leave on termination of employment' below.
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).
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.
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.
A casual or regular part-time employee who worked a total of 9,600 hours during an 8-year period of continuous service and who qualifies for a pro-rata payment on termination would be entitled to be paid an amount calculated on the following basis:
9600 ÷ 52 x 8.6667 ÷ 10 = 160.0006 hours
160.0006 hours x the employee's ordinary hourly rate
A casual or regular part-time employee who worked 15,600 ordinary hours during a 10-year period of continuous service would be entitled to access a period of paid leave calculated on the following basis:
15600 ÷ 52 x 8.6667 ÷ 10 = 260.001 hours' long service leave
If the employer and the casual or regular part-time employee agree, the entitlement can be taken in the form of a full-time equivalent. For example and using the example above, 260.001 hours may be taken as 6.8421 weeks based on a 38 hour week (full-time equivalent).
A casual or regular part-time employee who worked a total of 18,720 ordinary hours during a 13 year period of continuous service would be entitled to be paid an amount calculated on the following basis:
18720 ÷ 52 x 8.6667 ÷ 10 = 312.0012 hours
312.0012 hours x the employee's ordinary hourly rate
Note: Long service leave hours already taken shall be deducted accordingly.
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.
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.
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).
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 incapacity 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 (amendment operates from 22 June 2020).
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).
Also consider...
- Entitlements for long service leave are provided for in the Industrial Relations Act 2016.
QLeave – Long service leave in the building, construction, cleaning and community services industries in Queensland
Portable long service leave is available to employees in the building and construction, contract cleaning and the community services industries. This enables employees to work for multiple employers and gain their long service leave benefit from the Portable Long Service Leave Scheme.
However, if an employee in these industries works for the same employer continuously for 10 years the employer has an obligation to pay any long service leave entitlement and should contact QLeave regarding reimbursement.
For information regarding the scheme or individual service credit balances, visit QLeave – Portable Long Service Leave Authority.
Transferring, taking and cashing in long service leave in Queensland
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.
Calculating long service leave
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).
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.
Entitlement for completed years and months of service | ||||||
---|---|---|---|---|---|---|
Completed months (0-5) | ||||||
0 | 1 | 2 | 3 | 4 | 5 | |
Completed years | ||||||
0 | - | 0.0722 | 0.1444 | 0.2167 | 0.2889 | 0.3611 |
1 | 0.8667 | 0.9389 | 1.0111 | 1.0834 | 1.1556 | 1.2278 |
2 | 1.7333 | 1.8055 | 1.8777 | 1.9500 | 2.0222 | 2.0944 |
3 | 2.6000 | 2.6722 | 2.7444 | 2.8167 | 2.8889 | 2.9611 |
4 | 3.4667 | 3.5389 | 3.6111 | 3.6834 | 3.7556 | 3.8278 |
5 | 4.3333 | 4.4055 | 4.4777 | 4.5500 | 4.6222 | 4.6944 |
6 | 5.2000 | 5.2722 | 5.3444 | 5.4167 | 5.4889 | 5.5611 |
7 | 6.0667 | 6.1389 | 6.2111 | 6.2834 | 6.3556 | 6.4278 |
8 | 6.9333 | 7.0055 | 7.0777 | 7.1500 | 7.2222 | 7.2944 |
9 | 7.8000 | 7.8722 | 7.9444 | 8.0167 | 8.0889 | 8.1611 |
10 | 8.6667 | 8.7389 | 8.8111 | 8.8834 | 8.9556 | 9.0278 |
11 | 9.5333 | 9.6055 | 9.6777 | 9.7500 | 9.8222 | 9.8944 |
12 | 10.4000 | 10.4722 | 10.5444 | 10.6167 | 10.6889 | 10.7611 |
13 | 11.2667 | 11.3389 | 11.4111 | 11.4834 | 11.5556 | 11.6278 |
14 | 12.1333 | 12.2055 | 12.2777 | 12.3500 | 12.4222 | 12.4944 |
15 | 13.0000 | - | - | - | - | - |
Completed months (6-11) | ||||||
6 | 7 | 8 | 9 | 10 | 11 | |
Completed years | ||||||
0 | 0.4333 | 0.5056 | 0.5778 | 0.6500 | 0.7222 | 0.7944 |
1 | 1.3000 | 1.3723 | 1.4445 | 1.5167 | 1.5889 | 1.6611 |
2 | 2.1666 | 2.2389 | 2.3111 | 2.3833 | 2.4555 | 2.5277 |
3 | 3.0333 | 3.1056 | 3.1778 | 3.2500 | 3.3222 | 3.3944 |
4 | 3.9000 | 3.9723 | 4.0445 | 4.1167 | 4.1889 | 4.2611 |
5 | 4.7666 | 4.8389 | 4.9111 | 4.9833 | 5.0555 | 5.1277 |
6 | 5.6333 | 5.7056 | 5.7778 | 5.8500 | 5.9222 | 5.9944 |
7 | 6.5000 | 6.5723 | 6.6445 | 6.7167 | 6.7889 | 6.8611 |
8 | 7.3666 | 7.4389 | 7.5111 | 7.5833 | 7.6555 | 7.7277 |
9 | 8.2333 | 8.3056 | 8.3778 | 8.4500 | 8.5222 | 8.5944 |
10 | 9.1000 | 9.1723 | 9.2445 | 9.3167 | 9.3889 | 9.4611 |
11 | 9.9666 | 10.0389 | 10.1111 | 10.1833 | 10.2555 | 10.3277 |
12 | 10.8333 | 10.9056 | 10.9778 | 11.0500 | 11.1222 | 11.1944 |
13 | 11.7000 | 11.7723 | 11.8445 | 11.9167 | 11.9889 | 12.0611 |
14 | 12.5666 | 12.6389 | 12.7111 | 12.7833 | 12.8555 | 12.9277 |
15 | - | - | - | - | - | - |
PLUS
Entitlement for completed weeks and days of service
Entitlement for completed weeks and days of service | |||||||
---|---|---|---|---|---|---|---|
Completed days | |||||||
0 | 1 | 2 | 3 | 4 | 5 | 6 | |
Completed weeks | |||||||
0 | - | 0.0024 | 0.0048 | 0.0072 | 0.0095 | 0.0119 | 0.0143 |
1 | 0.0167 | 0.0191 | 0.0215 | 0.0238 | 0.0262 | 0.0286 | 0.0310 |
2 | 0.0333 | 0.0357 | 0.0381 | 0.0404 | 0.0428 | 0.0452 | 0.0476 |
3 | 0.0500 | 0.0524 | 0.0548 | 0.0571 | 0.0595 | 0.0619 | 0.0642 |
4 | 0.0667 | 0.0691 | 0.0715 | 0.0738 | - | - | - |
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:
15 years | 13.0000 weeks |
3 years, 3 months | 2.8167 weeks |
2 weeks, 2 days | 0.0381 weeks |
Total | 15.8548 weeks |
Examples – Payment for long service leave on termination
An employee who has at least 7 years' continuous service and whose employment is terminated (by either party) is entitled to payment of pro-rata long service leave on termination. It is important to note that such pro-rata payment is subject to certain criteria being met where the employee has less than 10 years' continuous service. This criteria does not apply to an employee who has at least 10 years' continuous service.
An employee with more than 10 years', but less than 15 years', continuous service shall be entitled to payment, on a pro-rata basis, for all continuous service. For example, an employee who is terminated after completing 12 years' continuous service and who has not taken any long service leave would be entitled to a pro-rata payment of 10.4000 weeks. A payment of pro-rata long service leave on termination of employment will be reduced by any period of long service leave already taken and paid for.
Examples – Accessing long service leave
An employee who achieves 10 but less than 15 years continuous service is entitled to access 8.6667 weeks long service leave. On the completion of a further 5 years' continuous service an employee is entitled to an additional 4.3333 weeks long service leave. There is no qualifying period of service once an employee has completed 15 years' continuous service and long service leave accumulated from that point on may be accessed as it accrues. Refer to tables above.
An employee who achieves 15 years or more continuous service is entitled to 13 weeks long service leave plus additional leave for any period of service in excess of 15 years calculated in accordance with the above tables (i.e. if the total service was 17 years 3 months the entitlement would be 13 weeks + 1.95 weeks [entitlement for 2 years 3 months] = 14.95 weeks 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.
© The State of Queensland 1995–2024
- Last reviewed: 08 Sep 2021
- Last updated: 08 Sep 2021