AUSFA-0013 · claude-sonnet-4-6 (high)
# Long Service Leave for National-System Employers: Which Law Applies and What Does It Provide?

## 1. The governing legal framework

The Fair Work Act 2009 (Cth) does **not** contain a stand-alone, uniform long service leave (LSL) scheme. Instead, **section 113** of the Fair Work Act—part of the National Employment Standards (NES)—preserves LSL by directing that an employee is entitled to long service leave in accordance with whichever **State or Territory long service leave law** applies to them:

> *"An employee is entitled to long service leave in accordance with a long service leave law of a State or Territory that applies to the employee."* — s 113(1), Fair Work Act 2009 (Cth)

This means:

- LSL for national-system employees is governed by **state and territory legislation**, not by a single federal code.
- There is **no single national LSL quantum or qualifying period** that applies the same way across the whole country.
- The entitlement an employee holds—and when it vests—depends primarily on **where the employment is based**.

## 2. Why there is no uniform national figure

Each jurisdiction enacted its own LSL legislation (most originating in the 1950s–1980s, with Victoria undertaking a major rewrite in 2018). The Commonwealth Parliament has never replaced those laws with a single national scheme. Section 113 of the Fair Work Act saves the existing state and territory laws rather than overriding them. Accordingly, employers with staff across multiple jurisdictions must apply materially different rules to different cohorts.

## 3. Jurisdiction-by-jurisdiction summary (as at FY 2025-26)

| Jurisdiction | Governing Act | Full entitlement at qualifying period | Qualifying period for full entitlement | Pro-rata on termination threshold |
|---|---|---|---|---|
| **NSW** | *Long Service Leave Act 1955* (NSW) | 2 months (≈ **8.67 weeks**) | **10 years** | After **5 years** (if dismissed other than for serious misconduct; or if the employee resigns due to illness, incapacity, or domestic pressing necessity) |
| **VIC** | *Long Service Leave Act 2018* (Vic) | 1/60th of the period of continuous employment | Right to **take** leave arises at **7 years** (≈ **6.07 weeks** at 7 years; ≈ 8.67 weeks at 10 years) | After **7 years** in most termination scenarios, including resignation |
| **QLD** | *Long Service Leave Act 1994* (Qld) | ≈ **8.67 weeks** | **10 years** | After **7 years** (if dismissed other than for serious misconduct, or on death) |
| **SA** | *Long Service Leave Act 1987* (SA) | **13 weeks** | **10 years** | After **7 years** in certain circumstances |
| **WA** | *Long Service Leave Act 1958* (WA) | ≈ **8.67 weeks** | **10 years** | After **7 years** in certain circumstances |
| **TAS** | *Long Service Leave Act 1976* (Tas) | **13 weeks** | **10 years** | Partial entitlement provisions apply in specified circumstances |
| **NT** | *Long Service Leave Act 1981* (NT) | **13 weeks** | **10 years** | After **7 years** in certain circumstances |
| **ACT** | *Long Service Leave Act 1976* (ACT) | 1/60th of the period of continuous employment | Right to take leave arises at **7 years** (≈ **6.07 weeks** at 7 years) | After **7 years** in most termination scenarios |

> **Calculation note (VIC and ACT):** 1/60 × 7 years × 52 weeks = 364 ÷ 60 ≈ **6.07 weeks** at the 7-year mark; 1/60 × 10 years × 52 weeks ≈ **8.67 weeks** at 10 years.

> **Important:** These are headline figures only. Each Act contains detailed rules on continuity of employment, the effect of breaks in service, rates of pay during leave (definitions of "ordinary pay" vary by jurisdiction), cashing out, taking leave before the full qualifying period, and interactions with enterprise agreements and other instruments. The specific Act must be consulted for each employee.

## 4. Key variables that differ materially by jurisdiction

| Variable | Range across jurisdictions |
|---|---|
| **Full quantum at qualifying period** | ≈ 6.07 weeks (VIC/ACT at 7 yrs) → **13 weeks** (SA, TAS, NT) |
| **Qualifying period for entitlement to arise** | **7 years** (VIC, ACT) vs **10 years** (all others for full entitlement) |
| **Pro-rata threshold on termination** | **5 years** (NSW) vs **7 years** (most others) |
| **Circumstances triggering pro-rata** | Varies—dismissal, redundancy, resignation, illness, death each treated differently |
| **Definition of "ordinary pay"** | Differs between Acts; affects the monetary value of the leave payment |
| **Accrual method** | Fixed lump-sum model (NSW, QLD, SA, etc.) vs proportional/rolling model (VIC, ACT) |

## 5. Practical implications for the employer

A national-system employer operating in multiple states cannot apply a single LSL figure uniformly to its workforce. For example:

- An employee based in **South Australia** who resigns after **10 years** is entitled to **13 weeks** of LSL.
- An employee based in **New South Wales** in identical circumstances is entitled to approximately **8.67 weeks**.
- An employee based in **Victoria** who reaches **7 years** already has a right to take approximately **6.07 weeks** of LSL—something that does not yet arise at all in most other states.

The employer must identify the applicable jurisdiction for each employee and apply the correct state or territory Act accordingly.

## 6. Summary

For a national-system employer, **long service leave is governed by whichever state or territory law applies to each individual employee**—preserved by section 113 of the Fair Work Act 2009 (Cth), not replaced by it. There is no uniform entitlement figure that applies the same way across the whole of Australia. The correct entitlement for any given employee turns on the jurisdiction in which their employment is based, and the employer must comply with the relevant state or territory LSL statute—which differs from jurisdiction to jurisdiction in qualifying period, quantum, pro-rata rules, and rate of pay.