Purpose:

This legislation establishes entitlements to long service leave for employees in the Australian Capital Territory.

Objectives:

• To provide employees with an entitlement to long service leave after a specified period of service.
• To outline the accrual rate and amount of long service leave.
• To regulate the granting and payment of long service leave by employers.
• To ensure continuity of service for long service leave purposes despite certain interruptions or changes in employment circumstances.
• To define mechanisms for payment in lieu of long service leave upon cessation of employment or death.
• To mandate record-keeping requirements for employers regarding employee service and long service leave.
• To establish an administrative and enforcement framework, including the appointment of a registrar and authorised officers, for the Act.
• To allow for employee complaints regarding entitlements and provide for review processes.
• To prevent contracting out of the rights conferred by the Act unless more advantageous to the employee.

Key Provisions:

• Entitlement to Long Service Leave (Section 3): An employee is entitled to long service leave after completing 7 years of continuous service with a single employer, and for each subsequent year of service.
• Amount of Long Service Leave (Section 4): Employees accrue long service leave at the rate of ¹⁄₅ of a month’s leave for each year of service.
• Grant of Leave (Section 6): Employers must grant long service leave of 4 weeks or more as soon as practicable after entitlement arises, or at another agreed time, and provide written notice at least 60 days before the leave date unless otherwise agreed.
• Payment for Leave (Section 7): Payment for long service leave is at a rate equivalent to the ordinary remuneration the employee would have received during the leave period. Specific calculation methods are provided for part-time, casual, and employees who change employment status.
• Manner of Payment for Leave (Section 8): Payment for long service leave must be made in advance for the whole period, or at the same times as regular pay (with cheque by post if requested), or as otherwise agreed. Provisions are made for increased remuneration rates and payments in lieu upon termination or death.
• Service Continuity (Sections 10, 10A, 11): Long service leave service continuity is preserved in cases of business transmission, re-contracting for services, and employment with associated companies.
• Pay in Lieu of Long Service Leave (Section 11A): Employers must pay an amount equal to the ordinary remuneration for the accrued long service leave credit if employment ceases for any reason.
• Pro Rata Long Service Leave Entitlement (Section 11C): A pro rata payment is required for employees with at least 5 but less than 7 years of service if employment is terminated due to illness, incapacity, domestic necessity, reaching minimum retiring age, death, or employer termination not due to serious misconduct.
• Long Service Leave Records (Section 12): Employers are required to keep detailed records for each employee related to their service and long service leave entitlements and usage.
• Administration and Enforcement (Part 3): Establishes a Registrar of long service leave and authorised officers to oversee the Act’s functions, including investigation of complaints and issuing compliance notices.
• No Contracting Out (Section 14): The Act’s provisions prevail over awards or agreements unless the award or agreement provides more advantageous rights to the employee.

Evidence of Compliance Requirements For Agricultural Organisations:

• Granting of Leave (Section 6):
  • Action: An employer must grant an employee 4 weeks or more of long service leave as soon as practicable after the employee becomes entitled to it, considering the needs of the business, or at another time mutually agreed upon in writing between the employer and employee.
  • Reporting/Action: An employer must provide the employee with written notice of the long service leave start date at least 60 days before the leave is to be taken, unless the employee agrees to a shorter notice period.
• Payment for Leave (Section 7):
  • Measurement Standard: Payment for long service leave must be made at a rate equivalent to the ordinary remuneration the employee would have received if they had not taken the leave.
  • Measurement Standard: For part-time or casual employees, ordinary remuneration for leave is calculated by multiplying the average number of hours worked each week during the 12 months immediately preceding the entitlement day by the employee’s ordinary remuneration on that day.
  • Measurement Standard: If a full-time employee becomes part-time or casual within 2 years immediately before becoming entitled to long service leave, their ordinary remuneration for leave is calculated by dividing the total salary or wages paid in the 5 years ending on the entitlement day by 5.
• Manner of Payment for Leave (Section 8):
  • Action: Payment for long service leave must be made in one of the following ways:
    • In advance for the entire period of leave.
    • At the same times the employee would have been paid if they had not taken leave, and by cheque posted to a nominated address if the employee requests.
    • In another manner mutually agreed upon by the employer and employee.
  • Action/Timeframe: If an increase in ordinary remuneration (under an award or agreement) occurs during the long service leave period:
    • If paid in advance (Section 8(1)(a)): The increase must be paid to the employee as soon as practicable upon completion of the leave.
    • If paid at normal times (Section 8(1)(b)): The increase must be paid in accordance with that paragraph (i.e., at regular pay times).
    • If paid in another agreed manner (Section 8(1)©): The increase must be paid as agreed, or as soon as practicable upon completion of the leave if no specific agreement.
  • Action/Timeframe: Payments in lieu of long service leave (Section 11A and 11C) must be made to the employee as soon as practicable after the termination of their employment.
  • Action/Timeframe: In the case of a deceased employee, payments in lieu must be made to their legal personal representative as soon as practicable after the employee’s death, but no later than 12 months after their death.
• Long Service Leave Records (Section 12):
  • Record-Keeping: For each employee, an employer must keep a record of:
    • The employee’s name, occupation, and classification.
    • Whether the employee is full-time, part-time, or casual.
    • The employee’s ordinary remuneration, including the base rate of pay and any loading payable, and the purpose of the loading.
    • The number of hours the employee works each week.
    • The date when the employee started as an employee.
    • Any annual leave the employee takes.
    • The employee’s entitlement to long service leave.
    • Details of long service leave granted or payment instead of leave made to the employee.
    • If employment ceases, the date when and reason the employee ceased to be employed.
    • The employee’s date of birth.
    • If overtime may be paid under an award or agreement: the number of hours the employee works each day and when the employee starts and stops work.
    • The name of each award or agreement under which the employee has entitlements.
  • Record-Keeping/Timeframe: Employers must retain these records for:
    • 7 years after the day all amounts owing to the employee’s legal personal representative are paid, if the employee’s service ends on death.
    • 7 years after the day the employee’s service ends, in all other cases.
  • Inspection/Audit: An employer must make records available for inspection by an authorised officer at the employer’s usual place of business during normal business hours upon request from the authorised officer.
• Compliance with Notice (Section 13E):
  • Action/Timeframe: A person must comply with a written requirement issued by an authorised officer to comply with the Act within 28 days after receiving the notice.

Metadata Keywords:

Long service leave, employment, employee entitlements, ACT legislation, employer obligations, industrial relations, human resources, workplace laws.

Publication Information:

Publication date: 1 October 2022 Version number: Republication No 28

Agricultural Industry Alignment:

Not specified in document.

Date Added to database:

This document was parsed and added to the database on 25-07-2025

URL:

https://www.legislation.act.gov.au/DownloadFile/a/1976-27/current/PDF/1976-27.PDF →