Long Service Leave in Victoria? Worth Making Career Decisions Based on It?

I'm looking to clarify the rules on Long Service Leave (LSL) in Victoria, plus advice on how to financially consider it for a career decision.

I've been with one company for over 6 years. I have approx 9 months to go before I've worked 7 years and eligible for LSL.

Based on Victoria government website, I'm eligible for LSL post 7 years. This appears the case even if I resign. Is my interpretation of these laws accurate? There haven't been any changes to rules i missed?

If the above is true, I tried doing a back of the envelope calculations on the trade-off on staying vs leaving the company. Let's assume a current salary of $100k.

Stay: LSL entitlement
=> 7 yrs x 52 weeks = 364 weeks
=> 364/60 = 6.01 weeks of LSL
=> 6.01 x 100k/52 = 11.5k

Go: Join new company
Expected external salary $120k
=> (120k - 100k)/12 x 8 months* = 13.3k
* Using lower estimate assuming it takes a month to find a new role.

Overall conclusion?
Seems to be to join a new company. I've not factored getting a better role internally or taxes. Happy to be corrected or new views added?



    I wouldn't go hanging on to a job just for the LSL. If your preferred role appears before the 7 years then I would just apply and cop it on the chin.

    Are you on a certified agreement or eba? There might be other conditions to your LSL but don't quote me on that.
    Eg. I currently have nearly 1 year of LSL owing to me under my CA but according to the VIC calculator I'm only entitled to 24 weeks.


      1 year, imagine they’re after you to start taking it?


        They don't have the operation capacity to release me. I'm saving it for retirement in 15 years as a bonus

  • +2 votes

    It’s only worth hanging on if you intend to use the LSL as leave. If you just want to earn more $, the math says change jobs.


      in some ways what difference does it make? Even if i swap, i could hypothetically look to take unpaid leave at some stage. No real difference right?

  • -1 vote

    I think if you quit now you can still get paid lsl pro rata

    • +13 votes

      Incorrect (unless his company EB says so). LSL only kicks in after 7 years of service.

  • +1 vote

    Unless you are one of the few covered by federal LSL laws and have to wait to 10 years. You can be bound this this through an EBA or a pre modern award. Beat to check this first before making any decisions. (99% likely it is 7 years if you're in the private sector).


      Just came on to say this, and it applies this way in NSW


      Yup, it's private sector. Thanks for flagging still.


    I will wait till 7 years, take some times off, then changing job

  • +2 votes

    7 years of LSL is serious money. I'd definitely hang around to be eligible unless a dream job pops up


    I recently hit my 7 years (well 2 years ago) so just after the recent changes in VIC - which worked out well for me.

    From memory its 52/60 weeks per year - so something like 4 days per year of service.

    Its nice coz you get it all in one go but in reality its probably not worth that much.

    FWIW I hung around until my 7 years partly due to LSL - so that I'd have the option to take the leave if I wanted. Unfortuantely I probably won't get a chance to take it before I find another role so will end up getting it paid out.

  • +3 votes

    I thought you start accruing LSL at 7 years, but you can’t actually take it until 10 years?


      But it does get paid out if you leave between 7 and 10 years

      • +1 vote

        Is this a VIC thing? I think in NSW it doesn't get paid out if you resign under 10 years of service except "as a result of illness, incapacity, domestic or other pressing necessity"

  • +1 vote

    Sounds like a no brainer, you get more money if you move to a new role with higher pay. Assuming you've provided all the possible information (there's also tax, whether you want a holiday, etc).

    However if the only thing that matters in the decision is money, go to your boss and ask for higher pay based on market conditions. If you can easily get $20k more for what you're already doing you're being underpaid. That way you can get higher pay and your LSL.

    Either way, the money doesn't look a big enough amount to care. I'd be looking at whether you like your current job or not. Changing just for money is usually a bad idea, I've had some shocker jobs that pay well.


    Can you start the new job in 9 months?

    Then what I would do is give notice and use all the LSL and start the new job after or during, then you can get double wage.

    Deffo stick around for the 9 months, its 300 hours pay for doing nothing (37.5 x 8)

    • +1 vote

      The point is they expect to get $20k a year more in a new job, which is worth more over 9 months than the LSL, they'd be better off just going in the new job if money is all that matters. You also can't start a new job while on LSL.


        I can't say if it was legit, but I know of many people who started a new job while on LSL


        Right, they way I read it he doesn't have a new job lined up and will be looking. I'd start looking as the Lsl accrual is coming up and do my end date but that's just me. Tax man eats that extra 20k up anyway.

        Good luck OP


          Tax man eats up the LSL payments too, it's still taxable income. If you're working two jobs you can't claim the tax free threshold on both and at the end of the day it's all part of taxable income. Whether you take the leave and work the second job at the same time or take it as a lump sum at quitting makes zero difference, but that's not the question here.

          Their plan is to find a new job now, rather than in 9 months time when their LSL is due. Whether it's worth waiting 9 months is the question, they earn $13k more in those 8 months (including a month job hunting), lose 11k on LSL, so it about evens out. If they don't take a new job, they earn $13k less over the next 9 months then earn an extra $11k from the LSL whether working two jobs, getting it paid out, whatever. They're still worse off.

  • +4 votes

    If you can get a promotion internally, the LSL will be paid at the higher rate.
    Also, extended time off is nice.

    If you hate your current job, it's not worth suffering for another 9 months. If you like your current job, I would stay.


      Yeh, bit of office politics is making it hard to swap roles right away, but it's on the cards and something I'm considering too.

  • +1 vote

    My opinion is that if you're with a company for more than 5 years you're really going to struggle with any kind of career move outside your organisation.

    Long service leave, from the outside, looks incredibly unfair. But then you've got to feel sorry for anyone who has clocked up 7+ years in one place. Their spirit has faded at some point and they've become satisfied with the same old same old.

    Look, changing companies is always hard. You start at the very bottom, socially, no matter what your past experience happens to be. And if you don't fit the culture of the new place then even your expertise may be largely ignored. But that's the challenge and it is understandable if long established staff fear a change.


    Be careful if you've taken any unpaid leave as this will have reduced the time accrued for LSL