The Victorian Government's online calculator assists both employees and employers covered by the Long Service Leave Act 2018 (LSL Act 2018) to calculate long service leave (LSL) entitlements.
You'll be prompted to fill in employment dates and any leave already taken, and an answer will be provided in seconds.
Although answers provided by the calculator should be accurate, we advise you have LSL entitlements verified by an independent party, such as your payroll office, union or a legal adviser.
To determine whether an award or agreement applies instead of the LSL Act 2018, call the Fair Work Ombudsman on 13 13 94.
An employee will be entitled to take LSL after completing a minimum of 7 years' 'continuous employment' with 'one employer'.
For more information see: LSL Act 2018 Fact Sheet 2 - taking LSL (DOCX 237.67 KB)
Visit our page on Long service leave: continuous employment for more information.
LSL is calculated as the total number of weeks' employment divided by 60 and multiplied by the ordinary weekly rate of pay at the time the leave is taken, or when the employee ceases employment.
For further information see our How long service leave can be taken page.
Employees are entitled to take LSL after a minimum of 7 years’ continuous employment. If employment ends after 7 years’ for any reason, the employee must be paid any unused LSL entitlement. The amount is to be paid in full on the final day of employment.
All forms of paid leave count towards the period of continuous employment for LSL accrual. Examples include: annual leave, carer’s leave, and long service leave.
However, unpaid leave exceeding 52 weeks will not count unless:
You can also visit our page Long service leave: continuous employment for more information and examples about the impact of other types of leave on LSL.
The LSL Act 2018 entitles full time, part time, casual, seasonal and fixed term employees to LSL where their employment has been 'continuous'. Under the LSL Act 2018, this means that there must not be an absence of more than 12 weeks between any two instances of employment, unless:
Genuine independent contractors are not employees and are generally ineligible for LSL under the LSL Act 2018. However, whether a person is truly an independent contractor or employee needs to be assessed on a case by case basis.
For an assessment of whether a person is a genuine independent contractor or an employee you can speak to the Commonwealth Independent Contractors Hotline on 1300 667 850.
Business owners are usually not employees and are ineligible for LSL provided by the LSL Act 2018.
If a business is sold and the purchaser employs an employee of the former owner, the new employer is responsible for their entire period of employment with the business.
To account for the value of the entitlement, sometimes a trust fund is established, or the liability may be factored into the sale price of the business.
Irrespective of the arrangement, the new employer will automatically be responsible for the employee’s period of employment with the former owner and themselves. If the new owner fails to recognise the employment with the former owner and fails to pay the correct LSL to employees, they will be in breach of the LSL Act 2018. A breach of the LSL Act 2018 is a criminal offence and an employer may be liable for a fine and a criminal conviction, and other costs and penalties.
Any LSL entitlement with the former owner should not be cashed out to the employee by the former owner.
You can also visit our page Long service leave: change of employer for more information.
LSL cannot be 'cashed out' – it is an offence under the LSL Act 2018 to give or receive payment instead of the employee actually taking the break from work.
Visit our page on how long service leave can be taken for more information.
Yes, there are criminal penalties for breaching the LSL Act 2018.
The LSL Act 2018 creates offences, including under section 9(2) where an employer fails to pay an employee their LSL entitlement on the day employment ends. An authorised departmental officer may prosecute for a breach of the LSL Act 2018. The penalty for this offence is 12 penalty units for a natural person, and 60 penalty units for a body corporate. Penalties can apply for each day during which the offence continues.
The value of a penalty unit varies from time to time and is updated on 1 July each year. From 1 July 2018, one penalty unit is $161.19 – meaning a fine of 12 penalty units is $1,934.28, and 60 penalty units is $9,671.40.
If an employer is found guilty of this offence, a criminal conviction may also be recorded.
An employee or their personal representative may seek to recover unpaid entitlements through a civil claim in the Industrial Division of the Magistrates’ Court within 6 years of the day their employment ends.
There are also penalties for employers who engage in adverse action against their employees in relation to LSL.
Adverse action is defined to include dismissing an employee, altering the position of an employee to their prejudice, or discriminating against the employee. It is an offence under the LSL Act 2018 for an employer to take adverse action against an employee because:
It is also an offence to make false or misleading representations about an employee’s LSL entitlements.
There are potentially significant penalties and orders that a Court may make against an employer for engaging in adverse action, including up to 52 weeks’ remuneration.
An employer must keep accurate records of the employee’s LSL during the entire period of employment and retain these for at least seven years after the employment ceases.
Records must be kept in the form (if any) prescribed by the regulations made under the LSL Act 2018.
The Fair Work Act 2009 (FW Act), which applies to all Victorian businesses, also requires that employment records be kept, and that pay slips be provided to employees.
It is an offence to fail to keep records in the manner prescribed by the LSL Act 2018. The penalty for this offence is 12 penalty units for a natural person, and 60 penalty units for a body corporate. If an employer is found guilty of this offence, a criminal conviction may also be recorded.
An employer must not refuse a request from an employee to provide their long service leave record. The penalty for this offence is 12 penalty units for a natural person, and 60 penalty units for a body corporate.
Visit our page on Long service leave: penalties for breaches for more information.
Making sure your cash flow is in order is one of the most important steps in making a business successful. Make sure you factor staff LSL into your cash flow forecasting so you don't get caught short.
It is an offence for an employer to fail to maintain records. It is also an offence to make a false or misleading statement in a record.
An employer must not refuse a request from an employee to provide their LSL record. The penalty for this offence is 12 penalty units for a natural person, and 60 penalty units for a body corporate.
Authorised officers can require a person to provide information or documents for the purpose of monitoring and enforcing compliance with the LSL Act 2018. Subject to certain rules, it is a criminal offence not to provide information or documents sought by an authorised officer in accordance with the LSL Act 2018. It is also a criminal offence to produce a false document.
These fact sheets are summaries only and must be read in conjunction with more detailed information such as the Comprehensive Guide to the Victorian Long Service Leave Act 2018 to establish whether the advice contained within applies to your individual circumstances.
Wage Inspectorate Victoria is responsible for regulating long service leave in Victoria.
For further assistance and advice about long service leave, contact the Wage Inspectorate online or call 1800 287 287.
We welcome any feedback, comments and suggestions you might like to share.
You also have the option to make an anonymous report if you suspect someone is breaking the rules relating to long service leave but you don’t want to provide personal information.
