Long Service Leave Victoria: How Much Are You Entitled To and When?

Victoria updated its long service leave framework in 2018 with one of the most employee-friendly LSL Acts in Australia. The key change from the old 1992 Act: pro-rata is now payable on resignation after 7 years for any reason except serious misconduct — meaning Victorian workers who quit after seven years no longer lose their accumulated entitlement.

How long service leave is calculated in Victoria

The Victorian LSL Act 2018 uses a continuous accrual model rather than a threshold-and-lump-sum approach. Leave accrues from the first day of employment at the rate of 1 week for every 60 weeks of continuous service — which equals approximately 0.8667 weeks per year.

*Except serious and wilful misconduct

Accrual across the employment timeline

Worked examples — how to calculate Victorian LSL

Pro-rata long service leave in Victoria — the 2018 Act changes

The Victorian Long Service Leave Act 2018 made a significant improvement on the old 1992 Act. Under the old rules, pro-rata LSL on resignation was only available after 7 years if the employee resigned because of illness or domestic pressing necessity. Under the 2018 Act, pro-rata is available after 7 years on any resignation — not just for hardship reasons.

This is one of only two states in Australia (along with NSW) where a voluntary resignation after the minimum threshold automatically triggers a pro-rata payout. In Queensland, general resignation before 10 years still does not qualify.

Victoria vs other states — how does it compare?

What counts as continuous service in Victoria?

Under the 2018 Act, “continuous employment” is defined broadly to protect workers from technical breaks that shouldn’t reset the LSL clock. The following do not break continuity:

• Paid leave — annual leave, personal/carer’s leave and community service leave all count toward the 7-year period.
• Parental leave — paid parental leave counts toward accrual. Unpaid parental leave does not break continuity but the period is excluded from the accrual calculation.
• Reasonable and customary temporary absence — short gaps between periods of employment with the same employer may not break continuity, depending on the circumstances and industry.
• Transfer of business — if your employer sells or transfers the business to a new owner and you transfer with it, your continuity carries across under the 2018 Act.
• Change in employment type — moving from casual to part-time to full-time with the same employer does not break continuity. The Act specifically protects workers who transition between employment types.

The following generally do break continuous service:

• A period of genuine unemployment between separate engagements with the same employer (if not covered by a customary gap).
• Resignation and re-employment — the new period of employment starts a fresh LSL clock, unless the gap qualifies as customary in the industry.

Casual employees and LSL in Victoria

One of the significant improvements in the 2018 Act is its explicit inclusion of casual employees. A casual worker is entitled to long service leave in Victoria if their engagement with the same employer has been regular and systematic — meaning a consistent pattern of work, even if hours vary week to week.

For casual employees, the ordinary rate of pay for LSL purposes is determined by averaging their earnings over the 12 months before taking leave (or over their entire employment period if less than 12 months). This prevents employers from paying LSL at a temporarily reduced casual rate.

Victoria’s portable long service leave schemes

A substantial portion of Victoria’s workforce is covered by portable LSL schemes that operate independently of the main Long Service Leave Act 2018. If you work in one of these industries, your LSL entitlement is held by an industry fund — not your current employer — and carries across when you change jobs.

If you work in one of these industries, do not assume your LSL is with your current employer. Check directly with the relevant scheme administrator before leaving a job — your portable entitlement may be more substantial than you expect.

Taking long service leave in Victoria — the rules

Once you’ve reached the 7-year threshold, the 2018 Act gives you the right to take your LSL. Here’s how it works in practice:

• How to request it: You must give your employer reasonable notice. The Act doesn’t specify an exact notice period — it’s based on what’s reasonable given the employer’s operational needs and your circumstances.
• How it can be taken: As a single continuous block, or in shorter periods by agreement with your employer. The Act removed the old 12-week minimum continuous period that existed under the 1992 Act.
• Double time at half pay: You can take leave at half pay for twice the duration, or at double pay for half the duration, if you and your employer agree in writing.
• Employer can defer: An employer can postpone LSL if taking it at the requested time would cause unreasonable disruption. But the employer cannot indefinitely refuse it — they must agree to an alternative date.
• Payout in lieu: An employer can pay out an employee’s LSL entitlement in cash instead of leave, but only by genuine agreement — it cannot be forced on an employee.

This article reflects the Victorian Long Service Leave Act 2018 as understood at June 2026. For disputes or binding advice, contact the Wage Inspectorate Victoria or a qualified workplace relations professional. WorkCalc Australia is independent and not affiliated with the Victorian Government or Wage Inspectorate.