Long service leave is a period of paid leave for employees who have been working for the same business for a long period of time. An employer is required to keep records of all leave taken by their employees. This includes all paid leave, such as long servic e leave.
Long service leave:
• is generally governed by state and territory laws
• can generally be taken after 10 years continuous service
• is generally paid at the employee’s ordinary rate of pay
• generally can‘t be cashed out
• is paid out to eligible employees upon termination of employment (minus any amount already taken); and
• may apply to casual employees.
Payment of long service leave upon termination
• If an employee’s entitled to long service leave and they haven’t taken it when they finish working for a business, it needs to be paid out to them.
• Long service leave needs to be paid out to employees at their current ordinary rate of pay.
Pro-rata long service leave
• Long service leave is also often paid out ‘pro-rata’. This means that a proportion of it is paid out on termination when an employee has worked for a certain amount of time.
• Whether an employee’s entitled to be paid out pro-rata long service leave when they end their employment depends on the State or Territory they’re working in.
Payment of long service leave upon termination
If an employee’s entitled to long service leave and they haven’t taken it when they finish working for a business, it needs to be paid out to them.
Long service leave needs to be paid out to employees at their current ordinary rate of pay.
Pro-rata long service leave
Long service leave is also often paid out ‘pro-rata’. This means that a proportion of it is paid out on termination when an employee has worked for a certain amount of time.
Whether an employee’s entitled to be paid out pro-rata long service leave when they end their employment depends on the State or Territory they’re working in.
Here at The Quinn Group, our dedicated team of employment lawyers can assist you with all your employment law concerns. Complete and submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 to arrange an appointment today.
