Long Service Leave FAQs for NSW Workers and Employers
Whether you're a business owner trying to stay compliant or an employee wondering if you're entitled to long service leave, this guide covers the most frequently searched questions, with direct links to the official NSW and Fair Work sources.
Frequently Asked Questions About Long Service Leave in Australia (including NSW)
1. How much long service leave do you accrue per year?
In NSW, employees accrue long service leave at a rate of approximately 0.866 weeks per year, which equals 8.67 weeks after 10 years of continuous service with the same employer.
2. How is long service leave calculated in NSW?
It’s calculated based on your years of continuous service and your ordinary rate of pay at the time of taking leave. The calculation also considers average weekly hours and length of service.
3. Can long service leave be paid out in NSW?
Yes, in specific situations. It’s typically paid out when employment ends after 10 years. It can also be paid on a pro-rata basis after 5 years if the employee resigns (not due to serious misconduct) or is made redundant or retires.
Long service leave is not usually cashed out during active employment unless allowed by an award or agreement.
4. How do I claim long service leave?
For standard long service leave, you claim through your employer. If you're part of a portable scheme (like in NSW community services), you claim through the relevant authority, such as the Long Service Corporation.
5. Do casuals get long service leave?
Yes, casual employees in NSW are eligible if their work is regular, systematic, and ongoing over the qualifying period. The leave is calculated based on hours worked.
6. How is long service leave calculated for part-time employees?
Part-time workers accrue leave based on actual hours worked, not full-time equivalents. The entitlement remains the same (8.67 weeks after 10 years) but is paid at the part-time rate.
7. Do you accrue long service leave while on maternity leave?
Yes, if the leave is paid parental leave. It continues to count as service. Unpaid parental leave generally doesn’t accrue long service leave but won’t break continuity of service.
8. Who pays for long service leave in NSW?
Standard schemes: The employer funds the leave directly.
Portable schemes: Employers contribute to a central fund via levies. The fund pays eligible workers when leave is taken or claimed.
9. What is portable long service leave?
Portable long service leave lets workers carry leave entitlements across different employers in the same industry. It's common in sectors like construction, cleaning, and now community services in NSW.
Learn more about NSW’s portable scheme or read our full breakdown here.
10. What’s the difference between standard and portable long service leave?
Standard long service leave is tied to continuous service with one employer.
Portable long service leave lets workers accrue entitlements while moving between employers, as long as they stay in the same industry and are registered in the relevant scheme.
Managing SCHADS and long service leave just got easier.
If you're an NDIS provider navigating complex entitlements under the SCHADS Award, including the new NSW Portable Long Service Leave Scheme, Pay Cat can help.
Book a demo to see how our compliant payroll system makes leave accruals, reporting, and award interpretation simple.
Who is Pay Cat?
Pay Cat are payroll specialists dedicated to helping Australian businesses simplify payroll and ensure 100% compliance with modern awards. As Employment Hero Payroll experts, we provide tailored solutions that streamline payroll processes, reduce errors, and save time. For SCHADS businesses, our industry-first, 100% compliant SCHADS interpreter template guarantees accurate award interpretation and automation.
Video: How Pay Cat helps NDIS providers simplify SCHADS and portable long service leave compliance.