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Calculate long service leave

Ensure you or your employees get the right amount of Long Service Leave.

On this page

  • Calculate how much leave is owing
  • How long service leave is calculated
  • How long service leave is applied

Long service leave calculator

The Victorian Government's online calculator assists both employees and employers covered by the State Long Service Leave Act to figure out someone's leave entitlement. You will be prompted to fill in employment dates and any leave already taken, and an answer will be provided in seconds.

Although the calculator provides fairly accurate answers, they should be verified by an independent party (eg payroll office, union or legal adviser).

Victorian Long Service Leave Calculator

Who does the LSL Act apply to?

Full time, part time, casual and seasonal employees all accrue long service leave.

However, the LSL Act does not apply to employees who are covered by a federal award or workplace agreement (individual or collective) where that award or agreement contains its own long service leave provisions.

The LSL Act also does not apply to employees who have their long service entitlement provided by another act or regulation, such as workers in building and construction, where it is provided by the CoINVEST scheme

Look at the Victorian Long Service Leave Act - Comprehensive Guide (PDF 1422.38 KB)PDF icon for more details or call Fairwork on 13 13 94.

Length of time worked to be eligible for LSL

An employee will be entitled to take long service leave after 10 years of continuous employment with one employer (see phasing in arrangement).  The date of commencement of long service leave is to be agreed between the employee and the employer.

An employee ceasing employment after at least seven years of continuous employment with one employer is entitled to be paid long service leave at the accrual rate of one week for each sixty weeks of continuous employment, regardless of the reason for termination of the employment.

See long service leave: continuous employment for more information and examples.

How Long Service Leave can be taken

The long service leave can be taken in separate periods so long as both parties agree.

The first thirteen weeks of LSL may be taken in up to three separate periods and subsequent LSL may taken in two separate periods after 5 years of service.

The actual date an employee's LSL commences should be agreed between the employer and employee.

See how long service leave can be taken page for more information and examples.

How payment for LSL is calculated

The calculation of long service leave is the total number of weeks’ employment divided by 60 and multiplied by the ordinary weekly rate of pay at the time the leave is taken, or the employee ceases employment.

See examples of how long service leave can be taken for more information.

Termination of employment

On the day that employment ends an employee with at least seven years of continuous service with one employer is entitled to receive, in full, payment for any long service leave not taken.

This will apply whether the employee has resigned, has had their employment terminated by the employer, has been made redundant, or has died, and regardless of the number of staff the business employs.

See long service leave: employment termination page for more information and examples.

The effects of other types of leave on LSL

Any form of paid or unpaid parental leave (maternity, paternity or adoption leave), up to 52 weeks at a time, will not break continuous employment.

An absence of any length from work on account of illness or injury (which includes a WorkCover absence), annual leave, or long service leave itself will not break employment.

Any other form of paid or unpaid leave, for example study leave, will also not break employment. 

See long service leave: continuous employment page for more information and examples about the effect of other types of leave on LSL.

Casual employment

Providing the employee has had continuous employment with one employer and there has been no longer than a three month absence between two periods of employment then LSL is accrued by the employee.

Independent contractors and business owners are usually not employees and would not be eligible for long service leave provided by the LSL Act. 

For more information about casual employment see varied hours from week to week in our examples of how long service leave is calculated.

When a business is sold

If a business is sold and the purchaser employs employees of the former owner, the new employer is responsible  for their entire period of service with the business.

To account for the value of the entitlement, sometimes a trust fund is established, or it may be factored into the sale price of the business.

Irrespective of the arrangement, the new employer will be responsible for the employees service with the former owner and the current owner.

See long service leave: Change of employer for more information.

Cashing out LSL

Long service leave cannot be 'cashed out': it is an offence under the LSL Act to give or receive payment instead of the employee actually taking the break from work.

See how long service leave can be taken page for more information and examples about cashing out LSL.

The phasing in arrangement

Since 1 January 2006 the entitlement to take long service leave after 10 years service has been progressively phased in.

So, to calculate when an employee is eligible to take leave under the phasing arrangement you must take two thirds of an employee’s period of service before 1 January 2006 and all of an employee’s period of service from 1 January 2006 is taken into account.

When this amounts to a total of 10 years, the long service leave entitlement is due to be taken.

This phasing-in method does not reduce the amount of long service leave to which an employee is entitled once the 10 year service is calculated.

Phasing does not apply to termination of employment.

See the phasing in arrangement on our examples of how long service leave is calculated for more information.

Penalties for breaching the LSL Act

Offences under the LSL Act attract a penalty of 20 penalty units.

The sole exception to this is the penalty for an offence relating to an employee working while on long service leave. This offence attracts a penalty of five penalty units for breach by an employee and/or an employer.

Where an employer or employee is found guilty of an offence, a criminal conviction may also be recorded.

See more information about long service leave: penalty for breaches.

Long service leave and your cash flow

Making sure your cash flow is in order is one of the most important steps in making a business successful.  Make sure you factor staff long service leave into your cash flow forecasting so that you don't get caught short.

Plan ahead and get on top of your cash flow forecasting

Keeping proper records of long service leave

An employer must retain a long service leave record for at least 7 years after the employee dies or stops working for the employer.  Use this template to keep proper records of your employees' LSL.

Long Service Leave Record (DOC 32 KB)DOC icon

For further advice, contact Employment, Information and Compliance

Ph: 1800 287 287