Long Service Leave in Victoria: 7 Years, How It's Calculated and Paid

Victoria's law is unusually firm in the employee's favour: a contract or settlement can't reduce what the Act gives you, and paying out leave instead of letting someone take it counts as an offence in most cases. Everything below comes from the Victorian Government's long service leave pages and FAQs, run by Workforce Inspectorate Victoria (known as Wage Inspectorate Victoria until 12 December 2025).

Victorian long service leave at a glance

Rule	Under the Long Service Leave Act 2018
Entitlement starts	After 7 years' continuous employment with one employer
Accrual rate	1 week per 60 weeks of continuous service
Who's covered	Full-time, part-time, casual, seasonal and fixed-term employees
Leaving after 7 years	Full payout of accrued, untaken leave on the last day
Leaving before 7 years	No payment
Half pay	Allowed by agreement, for twice as long
Cashing out while employed	Generally an offence

How to calculate long service leave in Victoria

1. Convert continuous service into weeks: years multiplied by 52, plus any extra weeks.
2. Divide the total by 60.
3. Subtract any long service leave already taken.

Victorian Government example	Service	Workings	Entitlement
Jenny, chemist	8 years and 6 weeks	416 + 6 = 422 weeks, divided by 60	7 weeks
Jacqui, resigns	7 years and 6 months	364 + 26 = 390 weeks, divided by 60	6.5 weeks paid out
Jayne, retires	22 years, 6 weeks already taken	1,144 weeks divided by 60 = 19.1, minus 6	13.1 weeks paid out

The example that catches employers out is Marcus. He resigned at 6 years and eleven months with a month's notice, and his employer paid him in lieu of notice so he left that day. He got nothing. Had he worked his notice, he'd have crossed 7 years and been owed a payout. If you're also working out notice and termination costs, see our redundancy pay guide.

Casual, seasonal and fixed-term staff

Casuals and seasonal staff accrue long service leave too, as long as employment is continuous. A gap of up to 12 weeks between engagements doesn't break it, and a longer gap won't either if it was agreed beforehand, is part of the terms of engagement, is caused by seasonal factors, follows regular and systematic work with a reasonable expectation of being re-engaged, or is up to 104 weeks of parental leave. The casual loading doesn't cover long service leave, and a casual rate can't be loaded up to replace it.

Fixed-term staff re-employed within 12 weeks of a contract ending keep continuous service. The Victorian Government's example: Karina worked on a run of 12-month contracts with short gaps before going permanent, and all eight years count.

Absences that don't break continuous service

Counts towards service (from 1 November 2018)	Doesn't count towards service
Paid leave	Unpaid leave over 52 weeks, unless the contract or a fair work instrument provides for it or it's for illness or injury
Unpaid leave, including parental leave, up to 52 weeks	The gap when someone leaves and is re-employed within 12 weeks (the service still connects, but the gap isn't counted)
Leave for illness or injury

Contracts and settlements can't reduce it

Two examples from the FAQs show how strict this is. Janika signed a contract saying she'd get no long service leave unless she stayed ten years; she left after eight and was still owed seven weeks, because a less favourable contract term is invalid. Esther accepted a settlement worth six weeks' pay when 8.7 weeks had accrued, and can still recover the shortfall. An employer can't use a contract, agreement or deed to avoid paying the full amount.

Business sales and employees who worked interstate

If a business is sold and the employee stays, the new owner takes on all the long service leave for the entire period at that business, whatever the sale documents say. The same applies if the old owner dismisses someone and the new owner re-employs them within 12 weeks to do substantially the same work. Service outside Victoria only counts where there's a sufficient connection to Victoria, such as work directed from Victoria.

Taking, directing and claiming the leave

• Half pay: an employee can take leave at half pay for twice as long, for example 13 weeks as 26 weeks. The employer must agree unless it has reasonable business grounds. Double pay for half the time isn't allowed.
• Directing leave: an employer can direct an employee to take long service leave with at least 12 weeks' written notice; the employee can apply to the Magistrates' Court to avoid it.
• Unpaid on leaving: not paying the full amount on the last day is an offence carrying penalty units for each day it continues.
• Claims under $20,000 can go to the Industrial Division of the Magistrates' Court after a written letter of demand, as of October 2026, or you can report the employer to the Workforce Inspectorate.

Long service leave sits outside the federal National Employment Standards, which is why every state has its own Act. Victoria also has portable schemes for some industries and a separate construction industry scheme.

The verdict

Count service in weeks, divide by 60 and keep the records, because Victorian employers must hand them over on request. If someone is close to 7 years, think twice before paying out their notice: it can decide whether they leave with nothing or with weeks of pay.

Frequently asked questions

How long do you have to work for long service leave in Victoria?

At least 7 years' continuous employment with one employer under the Long Service Leave Act 2018.

How is long service leave calculated in Victoria?

One week for every 60 weeks of continuous service, about 0.866 of a week per year.

Do casual workers get long service leave in Victoria?

Yes, as long as employment is continuous; gaps of up to 12 weeks between engagements don't break it.

Can long service leave be cashed out in Victoria?

Generally no. It's an offence in most cases, except when employment ends or certain fair work instruments allow it.