Long Service Leave Victoria: The 7-Year Rule, Pro-Rata and Payout

Last updated August 2026
Reviewed by the Australian Unions policy team, August 2026

Based on our affiliated unions’ experience, many Victorian workers don’t realise how generous their long service leave entitlements are until they compare them with NSW. A Victorian worker may be able to take leave after seven years or receive a payout on resignation, while someone across the border could miss out entirely in those circumstances.

Long service leave in Victoria at a glance

Employees are entitled to long service leave after an extended period of service with an employer. Your specific entitlements to long service leave will be determined by state or territory long service leave legislation, or (if you are covered by a pre-reform award) by the National Employment Standards under the Fair Work Act.  

This factsheet covers the specific rules for employees in Victoria, primarily under the Long Service Leave Act 2018 (Vic). These rules will apply unless you are covered by a pre-modern award. An enterprise agreement can also provide more generous long service leave entitlements.

How much long service leave do you get in Victoria?

In Victoria, you are entitled to long service leave once you have completed 7 years of continuous service with the same employer.

The accrual rate

Long service leave in Victoria accrues at a rate of approximately 1/60th of an employee’s continuous employment. This means that for every 60 weeks of service, you accrue one week of long service leave. Over 10 years of continuous service (520 weeks), this equates to approximately 8.6667 weeks of long service leave.

Taking leave from 7 years

A key advantage for Victorian workers is the ability to request to take long service leave after just 7 years of continuous employment. This is more generous than some other states, which typically require 10 years of service before leave can be taken. Your employer can only refuse your request on reasonable business grounds.

Taking leave in short blocks

The Long Service Leave Act 2018 (Vic) introduced greater flexibility, allowing employees to take long service leave in periods of a single day or more, rather than being restricted to longer blocks. This means you can use your accrued leave to suit your personal needs, with agreement from your employer.

Pro-rata long service leave in Victoria

Victoria’s pro-rata long service leave rules are generally more generous than some other states, such as New South Wales. This protects workers who leave employment for various reasons.

Pro-rata on any exit after 7 years

If your employment ends for any reason after you have completed at least 7 years of continuous service, you are entitled to be paid out your accrued pro-rata long service leave. This includes resignation, dismissal , or if your employer makes your role redundant.

Before 7 years

Generally, no pro-rata long service leave is payable if your employment ends before you have completed 7 years of continuous service. For instance, a member recently contacted us after leaving their job in Geelong after 6 years and 10 months. They had resigned for a new opportunity and were disappointed to learn they would not receive a pro-rata long service leave payout, as they had not reached the 7-year threshold.

How long service leave is calculated in Victoria

Long service leave is paid at your ordinary pay rate, ensuring you are compensated fairly for your accrued leave.

Which weekly pay rate applies

The payment for long service leave (whether taken or paid out) is based on your ordinary weekly pay rate at the time the leave is taken or paid out (i.e. the ordinary pay rate for your normal weekly hours of work).

If your ordinary pay rate is not fixed under your employment agreement (including under an applicable award or enterprise agreement), the payment for long service leave is based on the greater of your:

• Average weekly pay rate over the last 52 weeks of employment;
• Average weekly pay rate over the last 260 weeks (5 years) of employment; or
• Average weekly pay rate over your entire period of continuous employment.

This ‘greater of’ rule helps ensure that if your pay has fluctuated or decreased, you still receive a fair amount for your long service leave.

Worked Victorian example

Let’s say Jane works 38 hours a week at $30 per hour.

What counts as continuous employment

Continuous employment refers to an uninterrupted period of service with the same employer. Several factors protect this continuity, ensuring your long service leave entitlement builds up correctly.

Parental leave, absences and transfers

Your continuous employment for long service leave purposes is generally not broken by periods such as parental leave, other approved paid absences (e.g., sick leave), approved unpaid leave in some circumstances, or a transfer of business (where a new employer takes over the business). These periods will normally  count towards your continuous service.

Casual and seasonal work

In Victoria, casual employees and seasonal workers can also accrue long service leave, provided their employment is considered “continuous”. Employment will be considered to be continuous as long as there is no absence of more than 12 weeks between any two periods of employment (some absences of greater than 12 weeks may be permitted, e.g. if a casual employee has previously been engaged on a regular and systematic basis). The Victorian legislation also has detailed rules and formulae for working out long service leave entitlements where an employee’s weekly working hours are not fixed or they vary. 

Victoria vs NSW

Long service leave entitlements are primarily governed by state and territory laws, leading to differences across Australia. Victoria’s Long Service Leave Act 2018 (Vic) is often considered more generous than some other states. For example, in Victoria, you can request to take long service leave after 7 years of continuous employment, and you are entitled to a pro-rata payout upon any termination after 7 years. In contrast, in New South Wales, pro-rata long service leave is generally only paid on specific grounds (like illness or domestic necessity) after 5 years, and not for a plain resignation before 10 years of service (refer to the general Long Service Leave factsheet for more details on NSW).

Portable long service leave in Victoria

Victoria operates portable long service leave schemes for workers in specific industries: community services, contract cleaning, and security. Administered by the Portable Long Service Authority, these schemes ensure that eligible workers can accrue and access long service leave even if they change employers within those industries, as the leave ‘follows the worker’.

When long service leave is paid out

If you have completed at least 7 years of continuous service, any untaken long service leave must be paid out to you when your employment ends. This payment will be included in your final pay calculation. The amount paid out will reflect your accrued entitlement based on your length of service and applicable pay rate.

What to do if your Victorian long service leave is wrong

If you suspect your long service leave calculation is incorrect, or you haven’t received what you believe you’re owed, follow these steps.

Step 1: Confirm your continuous employment dates

Carefully review your employment records to establish your exact start date, and note any significant breaks in service (e.g., unpaid leave beyond 52 weeks) that might affect continuity.

Step 2: Calculate what you are owed

Use the accrual rate (1/60th of the period of continuous employment) and the ‘greater of’ weekly pay rate rule to perform your own calculation. Compare this with what your employer has provided or proposed.

Step 3: Raise it with your employer in writing

Politely communicate your concerns to your employer in writing. A simple email might be: “Dear [Employer Name], I am writing to query the calculation of my long service leave. My records indicate I have accrued approximately [X] weeks. Could you please provide a detailed breakdown of how my long service leave has been calculated?”

Step 4: Get your union involved

If you are a union member and your employer’s response is unsatisfactory, or you need assistance, contact your union. Unions regularly help members chase unpaid long service leave and resolve disputes over continuous employment, often at no cost to you.

Step 5: The Wage Inspectorate Victoria

If internal resolution or union involvement doesn’t resolve the issue, Wage Inspectorate Victoria is the state government body responsible for enforcing the Long Service Leave Act 2018 (Vic). They can investigate complaints and take action against employers who are not complying with the law.

Step 6: Join the Union

If you’re not already a member, join your union for expert advice, advocacy, and support with your long service leave entitlements and any other workplace rights.

Frequently asked questions

Think your long service leave is wrong? Your union can help

Don’t let your hard-earned long service leave go unpaid. Just like the member in Geelong who narrowly missed out, many Victorian workers are unaware of their full entitlements. If you suspect your long service leave calculation is incorrect, or you’re owed a payout, your union can provide expert advice and representation. We’ll help you understand your rights, deal with your employer, and chase what you’re owed. Join your union today for support. 

Related factsheets

• Long Service Leave (National)
• Final Pay
• Casual Workers
• The National Employment Standards

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