Long Service Leave in New South Wales: Eligibility, Pro-Rata and Pay

Under the Long Service Leave Act 1955 (NSW), most private-sector employees earn 2 months of paid leave, 8.6667 weeks, after 10 years of continuous service with one employer, with further leave every 5 years and pro-rata payments available from 5 years in defined circumstances.

Who Qualifies for Long Service Leave in New South Wales

The Long Service Leave Act 1955 (NSW) is the default long service leave regime for private-sector employees in New South Wales who are not covered by a more generous industrial instrument. It applies to full-time, part-time and most casual employees who complete 10 years of continuous service with the one employer, whether working for a single business or a related group treated as one employer under the Act. Section 4(2)(a)(i)(A) sets the headline entitlement at 2 months of leave on ordinary pay once that 10-year mark is reached. The Act defines a "month" as 4⅓ weeks for this purpose (s 4(a3)), which is why the entitlement is usually expressed as 8.6667 weeks rather than a calendar figure. Some NSW industries, including building and construction, contract cleaning and community services, instead sit inside a portable long service scheme administered by the Long Service Corporation, described further below.

How Much Leave Accrues, and How It Grows After 10 Years

At the 10-year qualifying mark, a full-time NSW employee is entitled to 8.6667 weeks of paid long service leave. The entitlement does not stop there: for every further 5 years of continuous service with the same employer, another month, 4.3333 weeks, accrues on top of the last. An employee who reaches 15 years therefore holds 13 weeks in total (8.6667 plus 4.3333), and an employee who reaches 20 years holds 17.3333 weeks. Part-time and casual employees accrue the same entitlement pro-rated to their ordinary hours. Leave does not have to be taken as soon as it accrues; it can be taken by agreement with the employer, subject to reasonable notice, and unused leave carries forward until it is taken or paid out on termination.

Pro-Rata Long Service Leave on Termination in NSW

NSW pro-rata rules split into two bands. Between 5 and 10 years of service, section 4(2)(a)(iii) pays pro-rata long service leave only where the employer ends the employment for a reason other than the worker's serious and wilful misconduct, where the worker resigns because of illness, incapacity, or a domestic or other pressing necessity, or where the worker dies, in which case the payment goes to the estate. A worker who simply resigns without one of those reasons, before 10 years, is not entitled to a payout. Once an employee passes the 10-year mark and starts accruing toward the next 5-year block, the rule changes: between 10 and 15 years, a pro-rata payment for the partly-completed block is available on termination for any reason, including plain resignation, because the underlying 10-year entitlement is already fully earned.

What Counts as Continuous Service in NSW

Continuous service under the Act generally means unbroken employment with the same employer, but the Act and its regulations treat certain absences, including many periods of paid and unpaid leave, as not breaking that continuity, while other breaks can reset the count depending on their length and cause. Casual and seasonal work, transfers between related businesses, and changes in ownership of the business can each affect whether earlier service still counts. Because these rules are technical and fact-specific, an employee unsure whether a break in their employment affected their service date should check directly with the Long Service Corporation or NSW Industrial Relations rather than assume either way.

How Long Service Leave Pay Is Calculated

When an employee takes or is paid out long service leave in NSW, the Act requires payment at whichever is higher: the employee's ordinary pay rate at the time the leave is taken, or at termination, or their average weekly ordinary pay over the preceding 5 years. This protects an employee whose pay has recently dropped, for example after moving to reduced hours, by preserving the benefit of their higher long-term average. For employees with variable pay, such as those who work overtime, commission or shift loadings, the 5-year average can produce a materially different figure than a snapshot of current pay, so it is worth checking both calculations.

Portable Long Service Leave in NSW

Outside the general Act, NSW runs portable long service leave schemes for workers who move between employers within the same industry, administered by the Long Service Corporation. These currently cover the building and construction industry, the contract cleaning industry, and, from 1 July 2025, the community services sector. A worker registered in one of these schemes accrues service across different employers in the industry rather than restarting the clock every time they change jobs, which matters in industries where short-term contracts and project-based work are common.

Where New South Wales Sits Compared to Other States

NSW's 10-year qualifying period and 8.6667-week entitlement is the most common pattern nationally, shared with Queensland, Western Australia and Tasmania, though each of those Acts sets its own pro-rata rules. Victoria and the ACT instead use a 7-year qualifying period, but Victoria pays nothing at all before 7 years while NSW allows an earlier pro-rata payment from 5 years in limited circumstances; see Victoria long service leave for that contrast. Western Australia's pro-rata rule at 7 years is broader than NSW's, covering plain resignation as well as dismissal; see Western Australia long service leave. For the equivalent entitlement sitting inside general industrial relations legislation rather than a standalone LSL Act, see Queensland long service leave. A worker with questions about a specific NSW entitlement can contact the Long Service Corporation directly, and related entitlements are covered on the redundancy pay in Australia page, the long service leave calculator, and the Australia employment law hub.

This article provides general information about long service leave in New South Wales under the Long Service Leave Act 1955 (NSW), current as at 19 July 2026. It is not legal advice. Long service leave entitlements depend on individual circumstances, including exact dates of service, breaks in employment and any applicable award, enterprise agreement or employment contract. For advice about a specific entitlement, contact the Long Service Corporation or a legal practitioner admitted in New South Wales.