Long Service Leave

March 2021 Long Service Leave

Table of Contents What is Long Service Leave? ...... 1 Employer Responsibilities ...... 2 Long Service Leave Acts by State ...... 3 Long Service Leave Questions ...... 4 Set up LSL Entitlement in Payroll Accounting Software ...... 9 Calculating Long Service Leave Accrual ...... 9  Calculating Long Service Leave for Casuals ...... 9 Cashing out Long Service Leave ...... 10  Cashing Out Long Service Leave by State ...... 10

 Cashing Out Long Service Leave Through Payroll System ...... 11

 Bookkeeper Process for Paying Cashed Out Long Service Leave ...... 11 Table 1 – Long Service Leave Ready Reckoner for NSW, VIC, QLD, TAS, ACT, WA* ...... 13 Table 2 – Long Service Leave Ready Reckoner for NT, SA ...... 14 Related References ...... 15

What is Long Service Leave? Long service leave (LSL) is a period of paid leave for employees who have been working for the same business for a long time. Each state has their unique laws, however LSL is generally taken after 10 years of continuous service. All states have an allowance for pro rata payment of unused LSL on termination, after 7 years in certain circumstances. It is important to know that in most states and territories in the LSL legislation the LSL accrual is cited in weeks per years of service. From January 2010 employers and employees in the national workplace system are covered by 10 minimum conditions known as the National Employment Standards (NES). In addition to the NES, generally an employee's LSL entitlement can come from a modern award, agreement, pre-modern award and state or federal laws. The NES preserves LSL entitlements in awards and agreements as they were at 31 December 2009. Therefore, if an employee did not have a specified LSL entitlement under an award or agreement at that time, then their entitlement to LSL generally comes from State or Territory long service leave legislation. Always check the award or agreement of the employee upon termination or when taking the LSL, to ascertain that you have accrued and/or paid the correct amount of leave. Some awards or agreements provide for a greater amount of LSL than the NES.

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 1 March 2021

Portable Long Service Leave Some Australian states and territories have legislation to provide employees in the security, community services, building and construction, coal mining and contract cleaning industries with access to portable long service leave. This is the subject of a dedicated resource - Portable Long Service Leave. Employer Responsibilities Employers have an obligation to the employee to track LSL and abide by the LSL Legislation and relevant award. The employer must keep full records of their employees' long service leave details for a period of up to 7 years. Some states reduce this for their LSL laws, however ICB recommends the 7 years after the employee has resigned or been terminated. Penalties may apply where an employer: fails to pay an employee while the employee is on long service leave. fails to pass on a pay increase that occurred while the employee was on long service leave. fails to pay an accrued entitlement on termination of employment. fails to pay an accrued entitlement on the employee's death. pays an employee in lieu of allowing the employee to take long service leave as a paid break from work. knowingly employs a person while that employee is on long service leave from employment with that employer or another employer. fails to maintain correct records. makes a false or misleading statement in a record.

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 2 March 2021 Long Service Leave Acts by State

State Act / Website Calculator Tool NSW Long Service Act 1955 (6 July 2009) Yes www5.austlii.edu.au/au/legis/nsw/consol_act/lsla1955179/ www.industrialrelations.nsw.gov.au/oirwww/Employment_info/Leave/Long_service_leave.page VIC Long Service Leave Act 2018 (1 November 2018) Yes www5.austlii.edu.au/au/legis/vic/consol_act/lsla1992179/ www.business.vic.gov.au/hiring-and-managing-staff/long-service-leave-victoria QLD Industrial Relations Act 2016 (March 2017) No – Use Ready Reckoner classic.austlii.edu.au/au/legis/qld/consol_act/ira2016242/ www.business.qld.gov.au/running-business/employing/employee-rights/long-service-leave TAS Long Service Leave Act 1976 (1 July 2012) No – Use Ready Reckoner www5.austlii.edu.au/au/legis/tas/consol_act/lsla1976179/ https://worksafe.tas.gov.au/topics/laws-and-compliance/long-service-leave NT Long Service Leave Act 1981 (27 October 2004) No – Use Ready Reckoner Legislation Database (nt.gov.au)workplaceinfo.com.au/payroll/leave/analysis/northern-territory-long- service-leave-provisions ACT Long Service Leave Act 1976 (2 February 1976) No – Use Ready Reckoner www.austlii.edu.au/au/legis/act/consol_act/lsla1976179/ WA Long Service Leave Act 1958 (10 June 2009) Yes www5.austlii.edu.au/au/legis/wa/consol_act/lsla1958179/ www.commerce.wa.gov.au/labour-relations/long-service-leave-0 SA Long Service Leave Act 1987 (1 January 2009) Yes www5.austlii.edu.au/au/legis/sa/consol_act/lsla1987179/ https://www.safework.sa.gov.au/workers/wages-and-conditions/long-service-leave

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 3 March 2021 Long Service Leave Questions

Long Service Leave NSW VIC QLD TAS NT ACT WA SA Years of continuous 10 years 7 years 10 years 10 years 10 years 7 years 10 years 10 years service for LSL? What is the LSL 8.6667 weeks 6.0667 weeks 8.6667 weeks 8.6667 weeks 13 weeks after 6.0667 weeks 8.6667 weeks 13 weeks after accrual entitlement? after 10 years after 7 years after 10 years; after 10 years 10 years, then after 7 years then after 10 years 10 years then 4.333 weeks 4.333 weeks after then 4⅓ weeks each subsequent ⅕ of a month for then 4.333 weeks 1.3 weeks per after 5 years further 5 years; after additional period of 5 years every after 5 years completed year then as it accrues 5 years @ 1.3 weeks per subsequent year after 15 years. completed year of service. Who is entitled to LSL? Employees Employees Employees Employees Employees Employees Employees Employees  Long Term  Long Term  Full-time &  Long Term  Long Term  Long Term  Long Term  Long Term  Casual >9/5/85  Casual regular part-  Casuals  Casuals  Casuals  Casuals  Casuals  Commission  Seasonal time. (must work  Commission  Commission  Commission  Commission based Workers  Casual from 32 hours based based based based  Commission 30/3/94 or in each based worked at least 4 week period) 32 hours in  Commission consecutive based 4 weeks  Commission based LSL stops accruing  Unpaid  Unpaid  Unpaid  Unpaid  Unpaid  Unpaid  Unpaid  Unpaid during… parental leave parental leave parental leave parental leave parental leave parental leave parental leave parental leave  Unpaid leave to 31/10/18  Unpaid leave  Unpaid leave  Unpaid leave  Unpaid leave  Unpaid leave  Unpaid leave  From 1/11/18 –  Absence for (except unpaid Not workers personal / retrospective compensation carer's leave)  Unpaid leave s greater than 52 weeks  104 weeks of unpaid parental leave Does LSL accrue if Yes Yes – for first Yes Yes Not unpaid Yes – but only Yes – but only Yes injury or illness 48 weeks personal leave 2 weeks in every 15 days in every (paid or unpaid)? (continuous year of service year of service service applies)

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 4 March 2021

Long Service Leave NSW VIC QLD TAS NT ACT WA SA Does LSL accrue Yes Yes Yes Yes No No Yes – but only the Yes whilst on worker's first 15 working compensation? days in any year are taken into account as service where absence is due to sickness or injury If employee leaves If dismissed by If LSL prior to LSL LSL LSL If dismissed by If dismissed by If dismissed by and returns? employer, LSL accruals prior to accrual prior to accrual prior to accrual employer, LSL employer, LSL employer, LSL prior to accrual recognised up to is recognised is recognised is recognised prior to accrual prior to accrual prior to accrual is recognised 12 weeks service within 3 months within 3 months within 2 months is recognised is recognised is recognised within 2 months but accrual is not If stood down Recognised for within 2 months within 2 months within 2 months If stood down counted for that due to downturn 6 months If stood (not including Recognised for If stood down due to downturn period in trade service down due to seasonal 6 months If stood due to downturn in trade service continues downturn in workers). down due to in trade service continues uninterrupted trade service Recognised for downturn in continues uninterrupted continues 6 months If stood trade service uninterrupted uninterrupted down due to continues downturn in uninterrupted trade service continues uninterrupted Can LSL be taken before Yes Yes – if both Silent Silent Silent Silent Yes – if both Yes – if both entitlement date? employer and employer and employer and employee agree employee agree employee agree Can any amount of LSL Must be least Not less than Silent – 1 continuous 1 continuous Silent 1 continuous 1 continuous be taken? 1 month taken 1 day. except if required period or period or no period or period or 1 continuous Can be taken at to be taken by 2 separate more than 3 separate periods separate periods period or ½ pay for twice employer, then periods if agreed periods of at of not <1 week with conditions separate periods as long. minimum of least 4 weeks at a with conditions Employee can 4 weeks to be time refuse on taken reasonable grounds

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 5 March 2021

Long Service Leave NSW VIC QLD TAS NT ACT WA SA If employee terminates Yes – Yes – after 7 years Yes – 7 & 10 years Yes – 7 & 15 years Yes – 7 & 10 years Yes – between Yes – 7 & 10 years Yes – 7 & 10 years before entitlement date, completed 5 but for special reasons for special reasons for special reasons 5 to 7 years & for for special reasons for completed is pro rata paid? <10 years for  Illness  Retirement  Retirement special reasons:  Death years special reasons  Incapacity >65yr men >65yr  Retirement  Any reason  Except  Illness  Death >60yr women  Illness >65yr except misconduct     Incapacity  Termination by Illness  Incapacity Illness misconduct Unlawful  Death employer  Incapacity  Death  Incapacity termination by employee  Termination by  Except  Death  Termination by  Death employer misconduct  Termination by employer  Termination by  Except employer  Except employer misconduct  Except misconduct  Except misconduct misconduct Cash out LSL? No – unless No – unless Yes – if permitted Yes No No Yes Yes – if agreed over-ruled over-ruled by award, in writing by enterprise by enterprise enterprise agreement agreement agreement or Commissioner Can paid work be done Silent No Silent Silent Not on duties Silent No No – penalty whilst on LSL? similar to those to employer usually performed if known Can employer force Yes – must give Yes – must give Yes – must give Silent Yes – must give Yes – must give Silent Yes – must give employee to take LSL? 1 month notice 3 months 3 months notice 2 months notice 60 days' notice 60 days' notice written notice and only 4 weeks LSL

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 6 March 2021

LSL Pay Calculation NSW VIC QLD TAS NT ACT WA SA How to calculate LSL?  Last pay  Last pay  Last pay  Last pay  Last pay  Last pay  Last pay  Last pay ord rate ord rate ord rate ord rate ord rate ord rate ord rate ord rate If given a choice, then  Variable  Variable  Casual avg  Casual avg  Casual avg  Variable  Casual avg  Casual avg always calculate workers avg workers avg weekly over weekly over weekly over workers avg weekly over weekly over on the higher of the over 12 months over 12 months accrual period 12 months accrual period over 12 months full service last 3 years two amounts, giving the or 5 years, or 5 years,  Commission  Commission  Commission  If full time from  Piece work avg  Commission benefit to the employee. whichever is whichever is based avg based avg based avg casual <2 years over 12 months based avg greater greater over year over 3 months over year avg over 5 years  After 10 years over year  Completed  Leave can be  Only pay  Commission Paid on years only after taken at ½ pay completed based avg completed 15 years for twice as long years over year years only  Paid on completed years only Included in LSL  Bonuses  Commissions  Commissions  Shift penalties  Over award  Allowances  Bonuses  Award pay calculation? avg weekly  Bonuses  Bonuses  Board & lodging payment  Bonuses  Performance payments bonuses  Salary  Salary  Part-time &  Allowances  Performance pay over 12 months sacrifices sacrifices casual loadings  Bonuses pay  Incentive or 5 year avg  Allowances  Performance  Incentive scheme (not if ord pay linked to pay scheme >$145,400 pa) hours worked excl bonuses  Incentive  Board & lodging scheme Not included in LSL pay?  Shift work  Shift work  Shift work  Bonuses  Shift work  Shift work  Shift work  Shift work  Other penalty  Other penalty  Other penalty  Living away  Other penalty  Other penalty  Other penalty  Other penalty rates rates rates allowance rates rates rates rates  Overtime  Overtime  Overtime  Award special  Overtime  Overtime  Overtime  Overtime rates eg. danger  Allowances  Allowances  Travel payments & allowances  Meal allowances  Overtime Is public holiday paid Yes – Yes – Yes – Yes – No – Yes – Yes – No – if on LSL? paid in addition paid in addition paid in addition paid in addition considered part paid in addition paid in addition PH not paid of LSL , not paid

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 7 March 2021

LSL & Super NSW VIC QLD TAS NT ACT WA SA Is superannuation paid No – unless No – unless No – unless No – unless No – unless No – unless No – unless No – unless on unused LSL on considered considered considered considered considered considered considered considered termination? Salary & Wages Salary & Wages Salary & Wages Salary & Wages Salary & Wages Salary & Wages Salary & Wages Salary & Wages (see below) (see below) (see below) (see below) (see below) (see below) (see below) (see below) Is superannuation paid Yes Yes Yes Yes Yes Yes Yes Yes on LSL taken?

NB: These tables are current at time of writing. Always check local legislation to confirm.

Relationship Between OTE and ‘Salary or Wages’ An amount can only be part of an employee's OTE if it is ‘salary or wages’ of the employee. But an employee's salary or wages may include amounts that are not OTE. E.g.: a lump sum payment in lieu of unused annual leave and unused long service leave on termination. There are special rules for directors of companies – for example, some directors are paid fees that are considered salary and wages, but are not considered to be OTE.

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 8 March 2021 Set up LSL Entitlement in Payroll Accounting Software Create wage category ‘Long Service Leave Pay’ and ‘Unused Long Service Leave’. Create LSL entitlement and assign both the above wage categories to the entitlement. Calculation is based on gross hours. Exempt shift and meal allowances, penalties, overtime, unused leave. Example: in NSW the LSL entitlement is 8.667 weeks after 10 years continuous service, therefore if an employee works 38 hours per week, LSL accrual per week equals Total working weeks in 10 years: 52 × 10 = 520 Total weeks per 10 years: 8.667 LSL accrual % of gross hours: (8.667 ÷ 520) × 100 = 1.666% Exempt ‘Unused LSL’ category from superannuation guarantee calculation (unless provided for in award or agreement) If calculating the accrual for an employee that has already been working, manually work out the opening hours, using the ready reckoner. Then from the date of calculation accrual can be calculated within the software if required. Consider adding an account to balance sheet called ‘Provision for LSL’ or similar. This would normally be added to the balance sheet at the time of service at which it would be payable upon termination. Calculating Long Service Leave Accrual To calculate the number of weeks an employee has accrued LSL, use these Ready Reckoners or online LSL calculators if available. To use the Ready Reckoner, simply ascertain the start date of employee and last accrual or finish date to ascertain number or years, months and weeks worked. Remember to reduce accrual by any unpaid leave or parental leave. There are circumstances where a break will not affect the continuity of an employee’s service but will not count when calculating the length of service, for example a period of parental leave. Calculating Long Service Leave for Casuals The calculation of long service leave for casuals is different for each state. The calculation must take into account the variable hours they work. Long service leave pay across all states is paid at the last/current pay rate, but the LSL calculation of how many weeks to pay differs from state to state. NSW – Average hours over 12 months or 5 years whichever is greater. VIC – Average hours over 12 months or 5 years whichever is greater. QLD – Average hours weekly over entire accrual period. TAS – Average hours weekly over 12 months. NT – Average hours weekly over entire accrual period. ACT – Average hours over 12 months. If moved from casual to full-time less than 2 years then average over 5 years. WA – Average hours over entire accrual period. SA – Average hours over last 3 years.

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 9 March 2021

The casual employee's ‘normal’ pay is used as the calculation basis for the wages. The usual pay for a casual employee includes casual loading, therefore this is included in the calculation. You don't calculate LSL payable solely on the base rate, you calculate on the base rate plus loading. Example – South Australia Belinda is a university student and has worked off and on over the last seven years with the local pub in SA. She now has her degree and wishes to terminate her employment. She is eligible for pro rata Long Service Leave of 9.1 weeks, (accrual of 1.3 weeks every year × 7 years). Her current rate of pay is $25 per hour, (including casual loading). SA calculation is the average hours over last 3 years worked. That is, if the employee had weeks where she did not work, these weeks would not be counted for service. The employee must have their average calculated over 156 weeks, which may in fact be greater than three years of service.

Note: Also note that because of excluding weeks where no work was performed, a casual worker may in fact need to work more than seven years before being eligible for long service leave.

2019 2018 2017 Total Average Hours per week 520 624 416 1560 1560/3 = 520/52 = 10 hours per week @$25 = $250 9.1 weeks × $250 = $2,275 gross LSL to pay

Cashing out Long Service Leave Cashing out long service leave is dependent on the long service leave act for each state and, as per Fair Work, this leave usually cannot be cashed out while the employee is still working for the business. It is important to note that it is unlawful for an employer to force (or try to force) an employee to make an agreement to cash out any leave. Cashing Out Long Service Leave by State Cashing out of Long Service Leave is allowed in four states. ACT, NSW, NT & VIC prohibit the cashing out of long service leave (other than, of course, termination of employment). Each state has their conditions, see below. Queensland Only if the employee is covered by an award or agreement that has the clause allowing cashing out of LSL. Only if employee has reached 10 years of continuous service. Employer and employee must make a written agreement and sign to cash out LSL. Allowed to cash out all or part of their long service leave entitlement instead of taking leave. If employee is under an industrial instrument that does not cash out LSL, employee can make an application to QLD Industrial Relations Commission for an order for payment, though this is generally made only on compassionate or financial hardship grounds. Tasmania Only if the employee is covered by an award or agreement that has the clause allowing cashing out of LSL.

Employer and employee must make a written agreement and sign to cash out LSL. Only if employee has reached 10 years of continuous service. Allowed to cash out all or part of their long service leave entitlement instead of taking leave and may also take a mixture of cash and leave. Western Australia Only if the employee is covered by an award or agreement that has the clause allowing cashing out of LSL. Only if employee has reached 10 years of continuous service. Employer and employee must make a written agreement and sign to cash out LSL. Allowed to trade in some or all of their long service for cash from leave entitlement instead of taking leave. South Australia Only if the employee is covered by an award or agreement that has the clause allowing cashing out of LSL. Only if employee has reached 10 years of continuous service. Employer and employee must make a written agreement and sign to cash out LSL. Allowed to cash out the whole or part of an accrued long service leave instead of taking leave. Cashing Out Long Service Leave Through Payroll System Create wage category ‘Cash Out Long Service Leave’, which is linked to the Long Service Leave entitlements to ensure the outstanding accrual is reduced from the cash out, if the LSL accrual exists. Superannuation Guarantee Contribution is paid on long service leave cash out payment. Entitlements are not accrued on the long service leave cash out payment. Bookkeeper Process for Paying Cashed Out Long Service Leave Step 1 Check the award or agreement allows for cash out of long service leave and seek a copy of the agreement between employer and employee to cash out leave. Step 2 Tax on cashed out LSL is marginally taxed. Step 3 Create wage category ‘Cash Out Long Service Leave’ and link to LSL accrual to ensure it reduces the LSL entitlement and include in SGC Superannuation calculations. Step 4 Process pay. Step 5 Ensure new wage category is included in W1 on the activity statement. Step 6 Add a note to employee card about the cashed out long service leave amount taken and date of payment. Example: Tony Mitchell of Perth has reached 10 years of service, which allows him 8.667 weeks of long service leave. He has agreed with his employer to take 6 weeks in a cash payment. If salary is $85,000 p.a. + SGC 9.5%, weekly salary is $1,634; cashed out 6 weeks' leave is $9,807. Calculate tax marginally − Salary YTD at 31 Dec 20 = $42,500; tax YTD = $9,906. New YTD salary $42,500 + $9,807 = $52,307 ÷ 26 = $2,012; tax = $512 × 26 = $13,312 less YTD tax paid = $3,406.

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Employee: Tony Mitchell Annual Salary $85,000 Pay Date: Weekly Salary $1,634.61 1 Dec 20XX Cashed Out Long Service Leave 6 weeks $9,807 Less PAYGW Tax (marginally taxed over YTD) PAYGW −$3,380 Net Pay $6,427 Superannuation Guarantee Contribution 9.5%* $931.67 Leave entitlements accrued Nil Remaining leave balance 2.667 weeks

*always check current rate or employee rate of superannuation.

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 12 March 2021 Table 1 – Long Service Leave Ready Reckoner for NSW, VIC, QLD, TAS, ACT, WA* Entitlement on the basis of 8.667 weeks for 10 years' service or 13 weeks leave for 15 years' continuous service *Note: For WA it only applies to completed years. So if an employee works 10 years and 11 months they only get paid for 10 years. Accrual for Completed Years and Months Completed Completed Months Years 0 1 2 3 4 5 6 7 8 9 10 11 0 0.0000 0.0722 0.1444 0.2167 0.2889 0.3611 0.4333 0.5056 0.5778 0.6500 0.7222 0.7944 1 0.8667 0.9389 1.0111 1.0833 1.1556 1.2278 1.3000 1.3722 1.4444 1.5167 1.5889 1.6611 2 1.7333 1.8056 1.8778 1.9500 2.0222 2.0944 2.1667 2.2389 2.3111 2.3833 2.4556 2.5278 3 2.6000 2.6722 2.7444 2.8167 2.8889 2.9611 3.0333 3.1056 3.1778 3.2500 3.3222 3.3944 4 3.4667 3.5389 3.6111 3.6833 3.7556 3.8278 3.9000 3.9722 4.0444 4.1167 4.1889 4.2611 5 4.3333 4.4056 4.4778 4.5500 4.6222 4.6944 4.7667 4.8389 4.9111 4.9833 5.0556 5.1278 6 5.2000 5.2722 5.3444 5.4167 5.4889 5.5611 5.6333 5.7056 5.7778 5.8500 5.9222 5.9944 7 6.0667 6.1389 6.2111 6.2833 6.3556 6.4278 6.5000 6.5722 6.6444 6.7167 6.7889 6.8611 8 6.9333 7.0056 7.0778 7.1500 7.2222 7.2944 7.3667 7.4389 7.5111 7.5833 7.6556 7.7278 9 7.8000 7.8722 7.9444 8.0167 8.0889 8.1611 8.2333 8.3056 8.3778 8.4500 8.5222 8.5944 10 8.6667 8.7389 8.8111 8.8833 8.9556 9.0278 9.1000 9.1722 9.2444 9.3167 9.3889 9.4611 11 9.5333 9.6056 9.6778 9.7500 9.8222 9.8944 9.9667 10.0389 10.1111 10.1833 10.2556 10.3278 12 10.4000 10.4722 10.5444 10.6167 10.6889 10.7611 10.8333 10.9056 10.9778 11.0500 11.1222 11.1944 13 11.2667 11.3389 11.4111 11.4833 11.5556 11.6278 11.7000 11.7722 11.8444 11.9167 11.9889 12.0611 14 12.1333 12.2056 12.2778 12.3500 12.4222 12.4944 12.5667 12.6389 12.7111 12.7833 12.8556 12.9278 15 13.0000 Accrual for Completed Weeks and Days Completed Completed Days Weeks 0 1 2 3 4 5 6 0 0.0000 0.0024 0.0047 0.0071 0.0095 0.0119 0.0142 1 0.0166 0.0190 0.0214 0.0237 0.0261 0.0285 0.0308 2 0.0332 0.0356 0.0380 0.0403 0.0427 0.0451 0.0475 3 0.0498 0.0522 0.0546 0.0569 0.0593 0.0617 0.0641 4 0.0664 0.0688 0.0712 0.0736

[PAY] Long Service Leave © The Institute of Certified Bookkeepers Page 13 March 2021 Table 2 – Long Service Leave Ready Reckoner for NT, SA Entitlement on the basis of 13 weeks leave for 10 years' continuous service Accrual for Completed Years and Months Completed Completed Months Years 0 1 2 3 4 5 6 7 8 9 10 11 0 0.0000 0.1083 0.2167 0.3250 0.4333 0.5417 0.6500 0.7583 0.8667 0.9750 1.0833 1.1917 1 1.3000 1.4083 1.5167 1.6250 1.7333 1.8417 1.9500 2.0583 2.1667 2.2750 2.3833 2.4917 2 2.6000 2.7083 2.8167 2.9250 3.0333 3.1417 3.2500 3.3583 3.4667 3.5750 3.6833 3.7917 3 3.9000 4.0083 4.1167 4.2250 4.3333 4.4417 4.5500 4.6583 4.7667 4.8750 4.9833 5.0917 4 5.2000 5.3083 5.4167 5.5250 5.6333 5.7417 5.8500 5.9583 6.0667 6.1750 6.2833 6.3917 5 6.5000 6.6083 6.7167 6.8250 6.9333 7.0417 7.1500 7.2583 7.3667 7.4750 7.5833 7.6917 6 7.8000 7.9083 8.0167 8.1250 8.2333 8.3417 8.4500 8.5583 8.6667 8.7750 8.8833 8.9917 7 9.1000 9.2083 9.3167 9.4250 9.5333 9.6417 9.7500 9.8583 9.9667 10.0750 10.1833 10.2917 8 10.4000 10.5083 10.6167 10.7250 10.8333 10.9417 11.0500 11.1583 11.2667 11.3750 11.4833 11.5917 9 11.7000 11.8083 11.9167 12.0250 12.1333 12.2417 12.3500 12.4583 12.5667 12.6750 12.7833 12.8917 10 13.0000 Accrual for Completed Weeks and Days Completed Completed Days Weeks 0 1 2 3 4 5 6 0 0.0000 0.0036 0.0071 0.0107 0.0142 0.0178 0.0214 1 0.0249 0.0285 0.0320 0.0356 0.0392 0.0427 0.0463 2 0.0498 0.0534 0.0569 0.0605 0.0641 0.0676 0.0712 3 0.0747 0.0783 0.0819 0.0854 0.0890 0.0925 0.0961 4 0.0997 0.1032 0.1068 0.1103

Example Refer to Ready Reckoner Table 2. Mark has worked for a NT business for 8 years, 5 months and 1 week. LSL accrual = 10.9417 weeks + 0.0249 week = 10.9666 Example Refer to Ready Reckoner Table 1 and LSL Questions. Leonie has worked for a NSW business for 7.5 years and is about to retire. Can she be paid a pro rata amount for long service accrued? Answer Under the NSW Long Service Leave Act, an employee who has completed five years (but less than ten years) of service is entitled to a long service pro-rata payment if he or she: resigns as a result of illness, incapacity, domestic or other pressing necessity. is terminated by the employer for any reason except serious and wilful misconduct. dies. Because Leonie is retiring, and none of the above circumstances apply, she is not entitled to a pro rata payment. Example Mary works full time for a period of 10 years for a VIC business. She doesn't take any leave but continues to allow it to accrue. She then moves to casual work for 3 days per week, for the next 5 years. What is her LSL entitlement after 15 years? Answer Under the VIC Long Service Leave Act, an employee whose hours have varied should have their leave calculated at an average of 12 months or 5 years, whichever is the greater. The employer would have to calculate the average hours worked over 12 months and over 5 years and note which is greater. Mary would be due 13 weeks for 15 years of service, but not as a full timer – it would be paid on the average number of hours as calculated in the previous step. For example, if she worked an average of 12 hours per week over the last year, but the average over the last 5 years was 25 hours per week, then the leave would be paid on the basis of 25 hours per week. Therefore, 13 weeks paid at the current rate of ordinary pay, based on 25 hours per week. Related References ICB – Employee Leave Accrual – What Stops it Accruing? ICB – Provisions for Entitlements ICB – Termination Pays FWO – Long service leave FWO – National Employment Standards ATO – Withholding from leave payments for continuing employees ATO – Tax withheld calculators