Work out your long service leave

If there is no entitlement to long service leave under the Federal jurisdiction, an employee may have an entitlement in accordance with the information below. 

Rate of pay for long service leave

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

Tables to calculate long service leave entitlements

Table 1

Use this table to calculate long service leave entitlements for employees who started employment before 3 June 2001 and had less than 15 years service as at that date. The phasing-in provisions in this table are not applicable to the calculation of pro rata long service leave payable on termination of employment. Please use table 2 for the calculation of pro rata long service leave.

To calculate long service leave under these 'phasing in' provisions, service before 3 June 2001 is reduced to two-thirds of its total. The difference between this reduced service and 10 years is the period after 3 June 2001 that must be worked before leave is due. This subsequent period of service is added to the actual service before 3 June 2001 and the total is multiplied by 0.86667 weeks leave for each year (and fraction of a year) to calculate the amount of leave owing.

The following examples illustrate this method.

Example 1

An employee has completed 1 year of service immediately before 3 June 2001. The 1 year counts as 0.6667 (i.e. two-thirds x 1) years continuous service for working out when the employee may take long service leave.

The employee may take leave after completing another 9.3333 (0.6667 + 9.3333 = 10) years continuous service. This means they will be entitled to take leave only after they have achieved a total of 10.3333 (i.e. 1 + 9.3333) years continuous service. The employee's entitlement at that time will be 8.9556 weeks (i.e. 10.3333 x 0.86667 weeks).

Example 2

An employee has completed 10 years service immediately before 3 June 2001. The 10 years count as 6.6667 (i.e. two-thirds x 10) years continuous service for working out when the employee may take long service leave.

The employee may take leave after completing another 3.3333 (6.6667 + 3.3333 = 10) years continuous service. This means they will be entitled to take leave only after they have achieved a total of 13.3333 (i.e. 10 + 3.3333) years continuous service. The employee's entitlement at that time will be 11.5556 weeks (i.e. 13.3333 x 0.86667 weeks).

Example 3

An employee has completed 13 years service immediately before 3 June 2001. The 13 years count as 8.6667 (i.e. two-thirds x 13) years continuous service for working out when the employee may take long service leave.

The employee may take leave after completing another 1.3333 (8.6667 + 1.3333 = 10) years continuous service. This means they will be entitled to take leave only after they have achieved a total of 14.3333 (i.e. 13 + 1.3333) years continuous service. The employee's entitlement then will be 12.4222 weeks (i.e. 14.3333 x 0.86667 weeks).

These provisions would not reduce any entitlement that an employee has already accumulated (e.g. leave for employees with 15 years or more service) prior to 3 June 2001.

Note: View more extensive examples on calculation of leave entitlements.

The phasing-in provisions outlined above, where only two-thirds of an employee's continuous service completed before 3 June 2001 counts as continuous service, do not apply to the calculation of pro rata long service leave payments made on termination of employment. In calculating pro rata long service leave payments to be made on termination of employment all continuous service by an employee is taken into account.

Table 2

Use this table to calculate:

• long service leave for employees who started employment before 3 June 2001 and had 15 years service or more as at that date
• long service leave for employees who started employment on or after 3 June 2001
• pro rata long service leave payable on termination of employment.

This table may also be used to calculate leave for a further period of employment after becoming entitled to a first period of long service leave (see examples 2 and 5 below).

Entitlement for completed years and months of service

Plus

Entitlement for completed weeks and days of service

More examples

Entitlements accruing before 3 June 2001

1. An employee who achieved 15 but less than 20 years continuous service before 3 June 2001 is entitled to 13 weeks long service leave only (before 3 June 2001 employees were entitled to 13 weeks leave after 15 years service but did not accrue any additional entitlement until completion of a further 5 years service).

2. An employee who achieved 20 years or more continuous service before 3 June 2001 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 Table 2 (ie. if the total service was 21 years 3 months the entitlement would be 13 weeks + 5.4167 weeks [entitlement for 6 years 3 months] = 18.4167 weeks long service leave).

3. An employee whose employment was terminated after achieving 10 but less than 15 years continuous service before 3 June 2001 is entitled to pro rata long service leave payment on termination calculated in accordance with Table 2 (before 3 June 2001these were the qualifying periods for payment of pro rata long service leave on termination of employment). This entitlement does not apply if the employee was dismissed for serious misconduct.

Entitlements accruing on or after 3 June 2001

4. An employee who commences employment on or after 3 June 2001 and achieves 10 but less than 15 years continuous service is entitled to 8.6667 weeks long service leave only (from 3 June 2001 employees are entitled to 8.6667 weeks leave after 10 years service but do not accrue any additional entitlement until completion of a further 5 years service).

5. An employee who commences employment on or after 3 June 2001 and 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 Table 2 (ie. 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). Remember, only two-thirds of an employee's service before 3 June 2001 counts in working out when leave becomes due.

6. An employee whose employment is terminated after achieving 7 years continuous service on or after 3 June 2001 is entitled to pro rata long service leave payment on termination calculated in accordance with Table 2. This entitlement is subject to several conditions if the total service is less than 10 years.

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 or taking into account the Act's phasing in provisions such longer period before accessing time off and pro rata payment on termination after 10 years or after 7 years continuous service for the instances detailed in the Act). However, the number of hours leave due and the amount payable at that due date will be determined by taking into account the reduced hours worked by casual or regular part-time employees.

The number of hours leave to which a casual or regular part-time employee is entitled is calculated by dividing the total ordinary hours worked during the period of service by 52, and multiplying this amount by 8.6667/10 (8.6667 weeks long service leave is due after 10 years service).

Example of calculation

A casual or regular part-time employee who worked 15,600 ordinary hours during a 10 year period of service and was paid an hourly rate of $12 at the time of taking leave would be entitled to be paid:

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. Where an award provides for a 40-hour week, 260 hours leave could be taken as 6½ weeks leave.

Employees who were casual or regular part-time for any part of their service

The long service leave entitlement for an employee who was a casual or regular part-time employee at any time during their continuous service is also calculated using the method outlined above. 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.

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 1999 stipulates the employer must pay the default average commission unless:

A relevant industrial instrument or contract between the employer and employee otherwise provides; or The Queensland Industrial Relations Commission, on application, considers that 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.