What is Long Service Leave?
Long Service Leave is a reward for employees who work for a single employer for a long period of time. This offers an incentive for employees to remain in their role long-term. Employees will receive their usual wages while on long service leave; however, this incentive can only be claimed by taking leave and is unremunerated if the employee opts not to take it. An exception to this is if the employee has outstanding long service leave entitlements upon termination.
In Queensland, long service leave is legislated under the Industrial Relations Act 1999. This Act outlines:
- Employees are entitled to 8.6667 weeks of paid long service leave after 10 years of continuous service
- After 10 years, employees are entitled to an additional 4.3333 weeks of long service leave which accrues every additional 5 years of continuous service
- After 15 years of continuous service, employees can access their long service leave as it accrues
- If an employee has continuous service for more than 7 years upon termination, they may be entitled to a pro-rata payment of long service leave
What we’re doing
At KBAS Bookkeeping, we understand how crucial payroll is to your business, so we are implementing a system to keep track of how much long service leave employees have accrued.
We understand that many businesses have a shorter life span for continuous employment, and for them long service leave will never eventuate; however, there are also many businesses that have loyal employees who are working towards long continuous service and may eventually be entitled to long service leave.
We’re excited to implement this new system for all our payroll clients. If you are an existing payroll client, or looking to become one don’t hesitate to call us on (07) 5408 7400, or if you need an appointment, you can always book a time that suits everyone here.