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.

Finding out what applies to you

See Where to go for more information for a list of the state and territory departments that look after long service leave. You’ll need to check with the relevant department to find out what the long service leave entitlements are and when they’re paid out.

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Page last updated: 17 Sep 2010