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Long Service Leave in NSW: 10 Years, Pro-Rata at 5 and How It's Paid

Under the NSW Long Service Leave Act 1955, full-time, part-time and casual workers get 2 months of paid long service leave after 10 years of continuous service with one employer, then one more month for each extra 5 years. The Act counts a month as 4 1/3 weeks, so 10 years gives 8.67 weeks and 20 years gives 17.33 weeks. Pro-rata payouts can start from 5 years.

NSW is the stricter state for reaching the milestone: 10 years, compared with 7 in Victoria. It also has a rule many workers don't know about: some absences don't break service but don't count towards it either, which can push the 10-year date back. Everything here comes from NSW Industrial Relations' long service leave pages and FAQs.

NSW long service leave entitlements

Continuous servicePaid long service leave
10 years2 months (8.67 weeks)
15 years3 months
20 years4 months (17.33 weeks)
Each extra 5 yearsAnother 4.33 weeks (one month)

The entitlement is measured in weeks, not days or hours. Who's covered: private sector, public sector and local government workers in NSW who don't get long service leave from an award, enterprise agreement, other industrial instrument or workplace law. Some private sector staff get it from a federal enterprise agreement or a pre-reform federal award instead, NSW public sector staff from the Government Sector Employment Regulation 2014, and local government staff from the Local Government State Award 2023.

Pro-rata long service leave when employment ends

Service when employment endsPro-rata payout?
Under 5 yearsNo
5 to 10 yearsOnly if the employer ends it for any reason other than serious and wilful misconduct, the worker resigns because of illness, incapacity, domestic or other pressing necessity, or the worker dies
10 years or moreYes, for any reason

The employer must pay it immediately on termination or resignation. The NSW example: Dean worked part-time at a video store from November 2009 until it closed in May 2015, more than 5 but under 10 years, and was owed 4.76 weeks pro-rata. If the job is ending through redundancy, our redundancy pay guide covers the separate payment that may also be owed.

For a resignation between 5 and 10 years, the worker has to show the qualifying reason caused it, on the balance of probabilities. It doesn't have to be the only reason, but it must be a real necessity, not a lifestyle choice. NSW's examples include moving to keep the family together or for a family member's health, caring for a sick spouse, wages too low to meet essential family commitments and real concerns about job security.

Absences that count, and absences that just pause the clock

AbsenceBreaks service?Counts as service?
Illness or injury, paid or unpaid, including workers compensationNoYes
Absence caused by a term of employmentNoYes
COVID-19 stand-down (11 March 2020 to 31 March 2022) or JobKeeper directionNoYes
Unpaid leave agreed by the employerNoNo
Unpaid parental leave, unless the contract says it countsNoNo
Industrial dispute, or no work because of a downturnNoNo
Other absence where the worker is re-employed within 2 monthsNoNo

The 'doesn't count' column is where people lose out. NSW's example: Marina took 6 months of agreed unpaid leave in 2005 and resigned three weeks after her 10-year anniversary. Because the 182 days didn't count, she was short of 10 years of service and got no long service leave. Luke's 12 months of unpaid parental leave means he needs another 364 days of service to reach his milestone.

Re-employment after more than 2 months starts the clock again, unless the Act treats the break as continuous. If you're weighing extended time off, compare this with your entitlements under the National Employment Standards.

  • Business sold and continuing as the same business: service with the old owner counts, the new employer is liable for all of it, and the long service leave record must transfer.
  • Transfer to a related company (parent or subsidiary of the same group) within 2 months: service continues.
  • Apprentices kept on, or hired by a related company, within 12 months of finishing: the apprenticeship counts.
  • Work outside NSW counts only if it had a substantial connection to NSW at the time, such as reporting to a NSW-based manager.
  • Changing from casual to part-time or permanent doesn't matter, as long as service with the one employer is continuous.

How long service leave is paid in NSW

It's paid at ordinary pay, worked out at the 'prescribed date': the day before leave starts, or the day before the last day of employment. Ordinary pay has three parts: the primary component, the cash value of any board or lodging, and the average weekly value of bonuses or incentives.

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How the worker is paidPrimary component is the higher of
Wholly at a fixed ordinary time rate (salary, or hourly including casuals)Ordinary remuneration at the prescribed date, or average weekly ordinary remuneration over the previous five years
Otherwise (multiple rates, bonuses or incentives)Average weekly wage over the previous 12 months, or over the previous five years

Shift, overtime and other penalty rates are excluded, and so are expense-related allowances, but casual loading is included. That five-year look-back protects anyone who's dropped their hours before taking leave.

The verdict

Track the 10-year date in days, not anniversaries, and subtract any agreed unpaid leave or unpaid parental leave, because that's what decides whether the milestone has really arrived. Employers: keep the record and use the five-year comparison for pay. NSW Industrial Relations' calculator is the safest way to check a pro-rata figure.

Frequently asked questions

How much long service leave do you get in NSW?

2 months (8.67 weeks) after 10 years of continuous service, then one more month (4.33 weeks) for each additional 5 years.

Can you get long service leave after 5 years in NSW?

Only as a pro-rata payout when employment ends for a qualifying reason, such as being let go other than for serious misconduct, or resigning due to illness or pressing necessity.

Do casual workers get long service leave in NSW?

Yes. The Long Service Leave Act 1955 covers full-time, part-time and casual workers.

Does unpaid parental leave count towards long service leave in NSW?

It doesn't break service, but it doesn't count as service unless your contract says it does.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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