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Long service leave: employment termination

Work out how much leave is owing

On this page

  • Understand when an employee is, and isn't entitled to long service leave
  • Work out what long service leave is owed upon termination
  • Deal with long service leave during liquidation

Employee entitlements

On the day that employment ends, an employee with at least 7 years’ of continuous service with one employer is entitled to receive –  in full – payment for any long service leave (LSL) not taken. 

This will apply whether the employee has:

  • resigned – see our example below
  • had their employment terminated by the employer
  • been made redundant
  • died.

If LSL has already been taken

Where an employee has already taken LSL, the employer must pay any remaining accrued LSL at termination.

If an employee dies before taking LSL

If an employee has accrued LSL – but dies before it is taken – a payment will be due to the employee's personal representative.

Example – Jacqui resigns

Jacqui resigns from her employment, and, following completion of her notice period, her employment ends after seven years and six months’ continuous employment. Jacqui’s long service leave entitlement is calculated as follows:

> Seven years multiplied by 52 weeks = 364 weeks.

> Six months = 26 weeks.

> 364 weeks plus 26 weeks = 390 weeks in total.

> We then divide the total weeks by 60, as Jacqui will receive one week of LSL for each 60 weeks’ continuous employment. 390 weeks divided by 60 equals 6.5 weeks. 

Jacqui is therefore entitled to payment for 6.5 weeks of LSL on the day her employment ends.

If a company is liquidated

If a business is liquidated, it's essential to contact the liquidator urgently to make an application to the liquidator to be paid from the available assets as a creditor of the business. 

If these are insufficient to meet an employee's LSL entitlement, the Fair Entitlements Guarantee may be available.

Employees who are owed certain employee entitlements after losing their job – because their employer went bankrupt or into liquidation – may be able to get financial help from the Australian Government through:

If you own, are looking to purchase, or start a small business with under 20 employees, you may be eligible for our Long Service Leave Small Business Information Service (LSLSBIS).

LSLSBIS offers one-on-one information and advice regarding your responsibilities under the LSL Act 2018.

To access this program, contact Wage Inspectorate Victoria by giving them a call on 1800 287 287 or send them an email.

Need further assistance?

Looking for further assistance and advice about long service leave? Email Wage Inspectorate Victoria or call 1800 287 287.

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