Long Service Leave NSW: Entitlements & Rules (2026)
Long service leave nsw is 2 months (8.67 weeks) of paid leave after 10 years of continuous service, then a further 1 month (4.33 weeks) at 15 years and for each 5 years after that. It is set by the Long Service Leave Act 1955 (NSW) and covers full-time, part-time and casual workers. This guide explains pro rata payments, how the National Employment Standards fit in, and what employers and workers should check, as part of our wider annual leave in Australia series.
- Long service leave nsw is 2 months (8.67 weeks) after 10 years of continuous service, then 1 month (4.33 weeks) at 15 years and every 5 years after that.
- Full-time, part-time and casual workers are all covered by the Long Service Leave Act 1955 (NSW).
- Workers with 5 to 10 years of service can receive a pro rata payment in limited cases, such as dismissal other than for serious and wilful misconduct.
- Long service leave cannot be cashed out while the person is still employed in NSW.
What is LSL leave?
Long service leave, often shortened to LSL, is extra paid time off earned by staying with the same employer for a long period. It sits on top of annual leave and personal leave.
| Term | Meaning | Why it matters |
|---|---|---|
| Long service leave (LSL) | Paid leave earned after a long period of continuous service with one employer. | It is a separate balance from annual leave, so it should be tracked on its own. |
| Continuous service | Ongoing employment with the same employer, measured under the NSW Act. | The entitlement is built on it, so keep clear start dates and employment records. |
| Pro rata long service leave | A part payment for workers who leave in certain circumstances before the full entitlement. | It can apply from 5 years of service, but only in the cases the Act lists. |
| Cashing out | Being paid money instead of taking the leave. | It is not allowed while the worker is still employed in NSW. |
Long service leave nsw: how much you get
The NSW entitlement grows in steps, and a payroll team can check it against the start date on file. Many workers only look at it when a ten-year anniversary arrives.
| Continuous service | Entitlement | Notes |
|---|---|---|
| Under 5 years | No entitlement | Nothing is payable on leaving. |
| 5 to 10 years | Pro rata payment only in set cases | Applies on dismissal (other than serious and wilful misconduct), resignation for illness, incapacity or domestic or other pressing necessity, or death. |
| 10 years | 2 months (8.67 weeks) | Paid leave that can be taken once earned. |
| 15 years | A further 1 month (4.33 weeks) | Added on top of the first block. |
| Each further 5 years | A further 1 month (4.33 weeks) | Repeats every 5 years after 15 years. |
Who is covered by long service leave nsw
The Act applies to most NSW workers in the private sector and beyond. Check which system applies, because some public sector and local government employees have separate arrangements.
- Full-time employees earn long service leave under the Long Service Leave Act 1955 (NSW) once they reach the service milestones above.
- Part-time employees are covered in the same way, so check that your payroll system counts their whole period of continuous service.
- Casual employees are also covered, which surprises many employers who assume casuals have no leave balances at all.
- Labour hire workers are employed by the labour hire provider, so their service is generally counted with that provider, not each host site.
- NSW state public sector employees, and some local government employees, may be covered by different state-system rules, so confirm before relying on this page.
Pro rata long service leave nsw
Pro rata long service leave nsw is a part payment for a worker who leaves before reaching 10 years. It is not automatic, and it only applies in the situations the Act lists.
- Confirm the worker has at least 5 years of continuous service with the employer, because nothing is payable below that point.
- Check how employment ended: dismissal for reasons other than serious and wilful misconduct, resignation because of illness, incapacity or domestic or other pressing necessity, or death.
- Calculate the pro rata amount from the length of service using the Act's method, and check the NSW Government long service leave guidance if you are unsure.
- Pay the amount with the final pay or as the Act requires, and show it clearly on the payslip.
- Keep the service records, the reason for the end of employment and the calculation for 7 years.
A worker who resigns for an ordinary reason, such as a better offer, generally does not qualify for the pro rata amount before 10 years.
NES long service leave: how national rules fit in
The National Employment Standards cover annual leave, personal leave, parental leave and more, but long service leave is mainly set by state and territory law. Awards and agreements can add to it.
| Leave type | Where the rule comes from | Detail |
|---|---|---|
| Annual leave | NES | 4 weeks per year for full-time employees, pro rata for part-time, and 5 weeks for some shiftworkers. |
| Personal/carer's leave | NES | 10 days paid per year for full-time employees, pro rata for part-time. |
| Casual employees | NES | No paid annual leave or paid personal leave, but a casual loading of 25% applies under most awards. |
| Long service leave in NSW | Long Service Leave Act 1955 (NSW) | 2 months (8.67 weeks) after 10 years, then 1 month (4.33 weeks) at 15 years and every 5 years after. |
| Long service leave in Victoria | Long Service Leave Act 2018 (Vic) | Different accrual rules, so read our guide to long service leave in Victoria if you employ staff there. |
Because the rules differ by state, an employer with staff in more than one state should track each person under the law of the state where they work.
Taking and paying long service leave in NSW
Once the leave is earned, planning matters more than the formula. A site roster that is full in the weeks before Christmas is a poor time to land a two-month absence on a small crew.
- Agree the start date with the worker in writing and give as much notice as the situation allows, because long service leave affects rosters and project timelines.
- Pay the worker at their ordinary rate for the period, and check the award or agreement for any extra entitlements that apply during leave.
- Do not offer to pay out the balance as cash while the person is employed in NSW, because it cannot be cashed out.
- Keep the leave balance on the payslip or in a leave report so the worker can see what has been taken and what remains.
- Check how annual leave, annual leave loading and long service leave interact in the award, since loading is not an NES entitlement.
Employer checklist for long service leave nsw
Good records make every long service leave question quick to answer. Payroll should be able to show start dates, breaks in service and leave taken.
- Record each worker's start date and any breaks in service, so continuous service can be shown for the Act.
- Check the 5, 10 and 15 year dates for every employee at least once a year, ideally before the 1 July payroll update.
- Include casuals on the long service leave register, not only permanent staff.
- Keep time and wage records for 7 years and issue payslips within 1 working day of payday.
- Note that the Fair Work Ombudsman pay guide for the award may add leave-related rules, and the Fair Work Infoline is 13 13 94.
- Look at the related leave types, including paid parental leave, bereavement leave and sick leave, so balances are not confused.
Common mistakes to avoid
- Assuming casuals cannot earn long service leave, when full-time, part-time and casual workers are all covered.
- Offering to pay out long service leave in cash during employment, which is not allowed in NSW.
- Restarting a worker's service date after a short break or contract change without checking whether service is continuous.
- Forgetting the pro rata cases between 5 and 10 years, especially on a dismissal that is not for serious and wilful misconduct.
- Applying Victorian accrual rules to NSW staff, or the other way round, when employing people in both states.
Long service leave nsw FAQ
What is LSL leave?
LSL leave is long service leave, a period of extra paid leave earned by staying with the same employer for many years. In NSW it is 2 months (8.67 weeks) after 10 years of continuous service, then a further 1 month (4.33 weeks) at 15 years and for each 5 years after that.
Do casuals get long service leave in NSW?
Yes. Under the Long Service Leave Act 1955 (NSW), full-time, part-time and casual workers are covered. The key test is continuous service, so keep accurate start dates and records for casuals as well as permanent staff.
Can I be paid out long service leave instead of taking it?
Not while you are still employed in NSW, because long service leave cannot be cashed out. You can receive a pro rata payment in limited cases if you have 5 to 10 years of service, such as dismissal other than for serious and wilful misconduct.
Is long service leave part of the NES?
Long service leave is mainly set by state and territory law, such as the Long Service Leave Act 1955 (NSW), not by the NES. The NES covers annual leave, personal leave and other minimum standards, and awards or agreements can add to them.
Next step: check your long service leave nsw balances
List each worker's start date, work out who is near the 5, 10 or 15 year mark, and confirm the rules with the NSW Government before paying anything out. At TQN Personnel, we place and employ labour hire workers across Sydney and can help you find workers or register for work. This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation.