Long service leave is one of Australia’s oldest employment entitlements. Unlike annual leave or personal leave, it is not part of the National Employment Standards and instead operates under state and territory legislation.
This means the rules differ across Australia – including when employees qualify, how much leave they receive and whether they can receive pro-rata payments when employment ends.
For Queensland businesses, the rules appear relatively straightforward. However, recent litigation has highlighted that Queensland’s legislation can apply in circumstances many employers would not expect, including where an employee performs only a small portion of their service in the state.
Understanding these nuances is critical for businesses operating across multiple jurisdictions or managing a mobile workforce.
Long service leave accrual in Queensland
In Queensland, long service leave is governed by the Industrial Relations Act.
Under the legislation, employees are entitled to 8.6667 weeks of paid long service leave after 10 years of continuous service, plus an additional 4.3333 weeks after a further five years (a total of 13 weeks after 15 years).
If employment ends after 10 years of service, any unused long service leave must be paid out on termination.
Pro-rata long service leave
Queensland also provides for proportionate long service leave between 7 and 10 years, but only in limited circumstances.
An employee with at least seven years’ service may receive pro-rata long service leave if employment ends because of redundancy or dismissal for reasons other than misconduct, illness or incapacity, death of the employee, or resignation due to domestic or another pressing necessity.
If an employee simply resigns after seven or eight years to take another job, they will usually not be entitled to pro-rata long service leave.
Fox v Infosys Technologies Ltd – a recent case every employer should know
A recent case demonstrates how broadly Queensland’s long service leave laws can apply.
In Fox v Infosys Technologies Ltd, an engineer employed by multinational IT company worked for the business for just over 10 years across multiple locations.
His employment history included around six years working in India, several years working in Victoria, and 18 days working in Brisbane.
Shortly before relocating to Brisbane, the employee resigned but completed the final 18 days of his notice period in Queensland.
Despite spending only 0.49% of his employment in Queensland, he claimed long service leave under Queensland law.
The case turned on how the legislation defines “continuous service”. Under section 93 of the Industrial Relations Act, service can count toward long service leave whether it occurs wholly in Queensland or partly in Queensland and partly elsewhere.
The Queensland Industrial Relations Commission determined the employee had completed 10 years of continuous service with the same employer, including some service in Queensland, and was therefore entitled to long service leave.
The decision was upheld by the Queensland Court of Appeal, and the High Court of Australia later refused the employer’s application for special leave to appeal.
The outcome confirmed that even a short period of employment in Queensland can trigger a long service leave entitlement, provided the employee has completed the required continuous service with the same employer.
Interstate long service leave differences
Because long service leave is governed by state legislation, the rules vary significantly across Australia.
| State / Territory | When LSL can first be taken | Standard entitlement | Pro-rata entitlement on termination |
| Queensland | 10 years | 8.6667 weeks | After 7 years in limited circumstances (e.g. dismissal other than misconduct, illness, pressing necessity) |
| New South Wales | 10 years | 2 months (8.6667 weeks) | After 5 years if dismissed other than serious misconduct, or resignation for illness / pressing necessity |
| Victoria | 7 years | Accrues at 1/60 of service (≈6.07 weeks at 7 years) | After 7 years for any reason |
| Western Australia | 10 years | 8.667 weeks after 10 years | After 7 years if termination is not due to serious misconduct |
| South Australia | 10 years | 1.3 weeks per year of service (≈13 weeks at 10 years) | After 7 years |
| Tasmania | 10 years | 8.6667 weeks | After 7 years in certain circumstances |
| Australian Capital Territory | 7 years | 1/60 of service | After 7 years |
| Northern Territory | 10 years | 13 weeks | After 7 years |
Practical long service leave scenarios for employers
The following examples illustrate how long service leave can be triggered.
Scenario 1: Resignation after eight years in Queensland
A Brisbane employee resigns after eight years to take another job.
Outcome: Long service leave should not be payable because the resignation does not fall within the limited circumstances allowing pro-rata long service leave between 7 and 10 years.
Scenario 2: Redundancy after nine years
A Queensland employee is made redundant after nine years of service.
Outcome: The employee is entitled to pro-rata long service leave because the termination occurred for reasons other than misconduct.
Scenario 3: Interstate transfer
An employee works 8 years in Sydney and 2 years in Brisbane.
Outcome: The employee may qualify for long service leave under Queensland legislation because their service occurred partly in Queensland and partly elsewhere.
Scenario 4: Short Queensland posting
An employee works 9 years and 11 months overseas and 1 month in Brisbane.
Outcome: If continuous service reaches 10 years while the employee is working in Queensland, they may qualify for long service leave under Queensland law – similar to the outcome in the Infosys case.
What long service leave risks should Queensland businesses be aware of?
Employers should pay particular attention to several risk areas.
Workforce mobility: Transfers between states or even short-term project placements in Queensland may create long service leave liabilities.
International employees: The Infosys decision demonstrates that service performed overseas may still count toward Queensland long service leave where part of the employment occurs in the state.
Termination calculations: When terminating employees between 7 and 10 years of service, employers should always assess whether pro-rata long service leave applies.
Record keeping: Because long service leave is based on continuous service, maintaining accurate employment records is essential. This becomes most important when switching between pay systems.
How can Business Chamber Queensland help employers navigate long service leave?
Long service leave is one of the most misunderstood employment entitlements in Australia because the rules differ across states.
For many businesses, long service leave obligations only become visible when an employee approaches the eligibility threshold or employment ends. However, the risks often arise much earlier – particularly where businesses operate across jurisdictions or transfer employees between locations.
Business Chamber Queensland provides practical support to help employers manage these risks, including:
- Workplace relations advice on long service leave obligations
- Assistance interpreting state legislation and complex scenarios
- Guidance on termination payments and payroll compliance
- Training and resources to help managers understand employment law obligations
For employers managing interstate workforces, international staff or complex employment arrangements, obtaining advice early can help ensure compliance and avoid unexpected liabilities.
