Long Service Leave - Would You Stay at a Company?

ryefig on 12/01/2024 - 11:07

The new year has me thinking about my current employment situation, as with many other people, I'm sure.

2024 will mark my 9-year anniversary at my current employer, this means in 2025 I will be eligible to receive and take my long service leave (just over 2 months' time off).

Over these 9 years at my company, I have enjoyed working a variety of roles and continue to learn and grow and generally I feel respected as an employee. My job is fine and my boss is great. While everything is going 'just fine' and I am comfortable where I am, my gut is telling me that I am growing out of this company, and it is time for a change with another organisation.
Changing roles within the company is a consideration, however, it's not the roll or the boss that I am seeking a change from, it's the company itself.

There are roles available in my specialisation across both larger and smaller organisations and it has been tempting to consider putting in an application. But where I am tripping myself up is I am so close (17 months to be exact) to receiving long service leave entitlement.
Two months paid time off work is an exciting proposition and I already have an idea what I want to do (I will combine my long service leave with my annual leave entitlement and spend 3 months enjoying a European summer - in other words, I would take my long service leave to take the trip of a lifetime. I also have been saving up my frequent flyer points so I could potentially get there in business class for next to nothing). Additionally, I really do not think I would ever work for another employer for 10 years, so this really would be a one-off benefit.

My boss is great and though nothing is finalised, and it is very far out, I have already had a discussion about taking this leave all at once to enjoy a summer in Europe. From a work perspective, it's a go.

If I leave my company, I miss out on receiving a one-off 2 months of paid leave. I might still take a Europe trip in 2025, but I would scale it back to a shorter time as I will likely be taking unpaid leave. Also, this new company might not allow me to take such a long block of leave in one go - Because of this uncertainty, this is my least preferred option.

The way I see it, my two options are:

  • Stay with my company: Have the holiday of a lifetime but I will be slugging away in a company that I am growing tired of. Then look for a new job when I return in 2025.
  • Look for a new job and leave my company if something comes up: This will mean the opportunity to earn more money and starting in a new role doing something new and experience a new organisation (which I could end up hating - but at least I tried), but I lose out on the guarantee of taking a holiday of a lifetime.

What would you do in my situation?

Poll Options

  • 251
    Stay with the company
  • 17
    Leave the company
Education & Work

Comments

  • Jimothy Wongingtons on 12/01/2024 - 11:09
    +7

    idk i personally would just wait it out and take the long service leave… then look at a new job (and hopefully a fat juicy bump up in salary?)

  • Ocker on 12/01/2024 - 11:13
    +16

    Many awards allow for accumulated LSL to be cashed out when you leave, viz. before the 10 year period you mention

    • Mechz on 12/01/2024 - 13:20
      +12

      Pretty sure it's 7 years.

      • gromit on 13/01/2024 - 14:40
        +6

        differs from state to state.

      • CBrads4 on 13/01/2024 - 18:04
        +3

        In Victoria you’re entitled to take your LSL after 7 years - as I have just done, taken almost two months off work.

        I find it really interesting that LSL entitlements are state based. It was quite frustrating for an ex-colleague of mine that worked for the company for 6.5 years in Victoria, moved to another state with a longer waiting period and wasn’t able to take his leave after 7 years. He ended up having his job role transferred in the HR management software back to Victoria, took his leave entitlements, then transferred the job role back to his new home state.

  • Sammy2000 on 12/01/2024 - 11:15
    +2

    You might be able to be paid out pro-rata for long service leave. Won't get the holiday but still get the cash.

    • mjwills on 13/01/2024 - 10:21
      +2

      That is not mandated for all jobs prior to the 10 year mark, so check to be sure.

  • SnoozeAndLose on 12/01/2024 - 11:20
    +11

    Just bear in mind that if you take the cash out, you may taxed more if it is over the bracket, also 2 months of leave will accumulate 3-4 days leave + super.

    Unless you can find a better pay job, I would wait and enjoy the holiday as you may need it for yourself and/or your family.

    • mjwills on 13/01/2024 - 10:22
      +6

      Also if you cash out your LSL at the end of your employment your employer is not required to pay superannuation on it.

      So you'll lose a few days of extra annual leave and some super.

      • SnoozeAndLose on 13/01/2024 - 12:59
        +2

        So will lose 2 months and a few days worth of superannuation + 4 days of leave

      • noz on 13/01/2024 - 16:35

        This very situation happened to me. I didn't realise that I would lose super, otherwise I would have cashed it out prior to termination. Not the end of the world, but still would have been better in my pocket.

  • redfox1200 on 12/01/2024 - 11:29
    +3

    if you can get a 20% pay increase by leaving, do that instead.

  • AnyFurtherDiscount on 12/01/2024 - 11:36
    +10

    My opinion as HR for small company, Stay! 17 months may a bit long but it is not. Shouldn't tell you about this but you can max out sick leave (I personally call it mental health day, when I am not sick but not feel to work), max out your annual leave as well. That would make your 17 months shorter.

    • ryefig on 12/01/2024 - 14:24
      +1

      You're right, 17 months in the grand scheme of things isn't really that long.
      Good idea about my sick leave, I have a lot of leave banked up. Something to take into account.

      • miwahni on 13/01/2024 - 01:03
        +2

        That's another downside of leaving, in most jobs you walk away from all the banked sick leave.

    • Lord Fart Bucket on 12/01/2024 - 18:14

      you can max out sick leave (I personally call it mental health day, when I am not sick but not feel to work).

      It's called adjustment disorder ;)

  • Payne on 12/01/2024 - 11:37
    +2

    Stay and find lots of things outside of work that make you happy.

    You could also do things that might better prepare you for your next role.

    • cookie2 on 12/01/2024 - 17:25

      This. You don't hate it there, so prepare for and even more importantly, try and find out more about what you'd be interested in trying instead.

  • Shadowsfury on 12/01/2024 - 11:40

    I'd check you'd at least be paid out your leave (thresholds aren't necessarily 10 years for this, depending on award/state)

    Then I'd be safe in the fact you could probably DIY a 3 month break at a new role with enough notice and still have walked away with most of the money you would have gotten if you took the leave in the first place

  • CooperLair on 12/01/2024 - 11:54
    +4

    I left my previous job 7 months out from long service leave. Best move I made.

    Before, I was comfortable, wrapped in a bubble and frankly going backwards in skills

    Hopefully you get a reasonable bump in salary that covers the financial side of LSL and your expected 3 month break

    • ryefig on 12/01/2024 - 14:43

      Going backwards in skills is a daunting thought. Luckily there are some opportunities for learning and development, so if I do stay (which I am leaning towards) will take some of these up.

  • DingoBilly on 12/01/2024 - 12:02
    +3

    Holiday of a lifetime sounds great! It'll put you into a great mindset for looking for new work when you return if that's what you want to do. Plus it means you can learn a new role uninterrupted.

    Starting a new job then having to take a break for holidays can be a bit rough.

  • Dollar General on 12/01/2024 - 12:05

    If you enjoy working for your current employer, I would stay.

  • jv on 12/01/2024 - 12:36
    +8

    but I lose out on the guarantee of taking a holiday of a lifetime.

    If you are Hindu, just take the holiday in your next lifetime.

    • Lord Fart Bucket on 12/01/2024 - 18:16
      +3

      If you are Hindu, just take the holiday in your next lifetime.

      Bhuddists too, jv. Be inclusive.

  • samyall on 12/01/2024 - 13:28
    +1

    Easy maths: if something comes up that pays >~17% more than your current place - take it, otherwise stay put and wait for your holiday.

    • mskeggs on 12/01/2024 - 16:24
      +5

      Very good example of how numbers don't tell the whole story!

  • ninohax on 12/01/2024 - 13:51

    Stay with the company is a no brainer. Enjoy your 3 month European vacay.

  • dtc on 12/01/2024 - 14:07
    +2

    Check your award and see whether you can be paid out

    If no award, check here https://employsure.com.au/guides/annual-leave-and-other-leav… (each state is different)

    If you arent entitled I suggest two options (given that you dont dislike your job, you just think somewhere else might be better - although it may not be). I say this on the basis that in 10 years you will almost certainly not care whether you spent another 18 months in this job or not, but you will absolutely remember your 3 months of leave.

    1. if you get a job with a pay increase of 12-15% pa (or more) then you will financially make up your lost LSL within the next 18 months (ie by the time you would have taken it). But ask for a delayed start, and take three months off between jobs. You wont be paid, obviously, but hopefully you have sufficient savings to cover the costs. You then make up that amount when you start again. High risk of course eg if the job gets pulled or whatever. But an option

    2. stay.

    3. stay and ask for more responsibility. You have a boss, so there must be a higher level of responsibility available. do that for 18 months, as a change, while you wait out your LSL

    • ryefig on 12/01/2024 - 14:28
      +5

      "in 10 years you will almost certainly not care whether you spent another 18 months in this job or not, but you will absolutely remember your 3 months of leave"

      That is an excellent perspective and your first point makes a lot of sense - not something I considered, thank you for your comment!

      I have never been to Europe before and have a list of places I would like to visit, so it certainly would be a trip to remember.

  • freefall101 on 12/01/2024 - 14:11
    +8

    Wow, NSW sucks, most states have it defined in law that you get a cash out if you're after 7 years.

    Check your award, but I'd definitely hang around, getting 2 months off will revitalise you far more than a new job will. I'd also consider your current role internally and look at the improvement opportunities. New training, using your role as a more senior employee to really push for some change in how things are done, look at some of the key headaches and write a proposal on how to fix it.

    • ryefig on 12/01/2024 - 14:37

      2 months off will revitalise you far more than a new job will

      Yes, an excellent point. I suppose sticking around for the trip will be worth it after all.

      Your reply reads like someone in a Senior management position - Did I guess correctly?.
      That is a good idea and I have a few thoughts already, thank you for the tips.

      • freefall101 on 13/01/2024 - 17:52

        I'm the person who writes the reports that senior management read, say "that's a brilliant idea" but they never adopt it :P. Kind of senior HR process and reporting role. It's amazing how fixing a bad process can actually rejuvenate some people in their jobs because they get to do the bit they love. Granted, it can also create redundancies.

        I also get to read all the exit letters and such, along with do a lot of market analysis. It's all the same, people like their teams but regularly don't like the direction of the company. Because teams hire people who fit culturally for that team, you can wind up with pretty much every team feeling the same way - like their own spot, hate everyone else (anyone who hates their own team leaves straight away, they're rarely a long term problem).

        Also I've been there, long time at a company, little improvement nor control over your own destiny, I've left too. The last few years I've tried improving before leaving though, to see if it works. Sometimes it does, sometimes it doesn't.

    • ribze1 on 13/01/2024 - 15:10
      +1

      And you're not eligible unless you resign after you hit that date i.e. if you give notice four weeks prior and your last day is the day after your 10 year anniversary you will not get paid out.

      • Smol Cat on 13/01/2024 - 17:49

        Whoa is this accurate? I thought you got paid out pro rata?

        • ribze1 on 13/01/2024 - 21:38

          NSW

        • AFOS on 14/01/2024 - 15:15
          +1

          I had a guy who quit his job less than a month before being eligible for LSL (Victoria though). He got paid nothing. Another colleague of mine resigned one year before eligibility. Both cases in 2023. Happens more often than you might think.

          One thing to consider is that if you get rehired by the same company within 90 days window, your LSL eligibility may get restored. Depends on the state legislation and EBA though.

          Funny thing that in the latter example (resignation one year before eligibility), the lady was sure that she was she was getting a golden ticket by getting a substantial payrise. The reality was was a bit harsh. She got to work longer and more strenuous hours in a busy environment so she got in touch trying to get her place back. By that time the position was already filled in. So, it cuts both ways… Not sure if she survived there for too long.

    • pangwen on 13/01/2024 - 18:18

      Depends on your definition of "most states". Victoria, South Australia and Western Australia pay out after 7 years if you leave your job voluntarily. Queensland, NSW and Tasmania (apart from retirements) do not.

  • Flying Ace on 12/01/2024 - 14:48
    +4

    Personally I'd be kicking myself if I left a job with just over a year until I would get long service leave.

  • takloohaivan on 12/01/2024 - 14:57
    +2

    LSL is paid on the highest of the last wages drawn or the average wages of the last 5 years. Lot of businesses have an annual CPI increase. Consider this while leaving as you can hang around more and get higher LSL.

    Also note that if you take LSL you get paid Super on the LSL but if you get LSL cashed out when you resign you loose the Super. So that is a loss of 11% on LSL.

    If i was you i would have waited to complete the required period to be eligible for LSL. take LSL and super on it. And while waiting to take LSL also try to reduce a bit of my sick leave. At the same time i would keep searching for a job

    keep looking for a new job and if you are getting a new role with 30% or more jump the maths of higher wages for next 17 months might work out more than the loss in LSL.

  • Cherry12 on 12/01/2024 - 16:50
    +1

    You don't need to wait for 10 years, it's just 7 years to be able to access Long Service Leave. Take LSL, go on holidays then move on.

    Edit: just googled and in NSW is 10 years, 3 years longer than VIC. Sucks!

    • Gunnar on 13/01/2024 - 08:14

      Depends on your employer. I’m NSW based and got my long service leave pro rata after 7 years

  • cookie2 on 12/01/2024 - 17:27

    Consider another option. Go for interviews, see if anything feels good, mention your interest in a 3 month holiday the following year and see if the prospective employer offers that flexibility. You need to know what's available to you before you decide to stay put for a bit longer.

  • Stewardo on 12/01/2024 - 20:29
    +1

    Just make sure you are well clear of your anniversary before you quit. I’ve seen colleagues leave with a furious rant at everyone that had wronged them over ten years, only to discover later, the week they took of without pay 6 years ago, is discounted from the ten years.

  • loulou1 on 12/01/2024 - 20:49
    +2

    Where I work, after the first lot of long service leave accumulates we continue to accumulate an additional 9 calendar days per year (to be taken in a minimum 7 day block at a time).
    I look at it as at least an extra paid week of leave every year that I won’t get elsewhere so that might be something to also take into consideration.

    • Smol Cat on 13/01/2024 - 17:46
      -1

      Never heard of this, sounds bloody great. Actual genius idea to keep people on.

  • kiriakoz on 13/01/2024 - 00:38
    +2

    I'm a good person to answer this. I've worked in two companies over the past 18-19 years. The last one, I left after 9 years as I was sick of it. Similar thing here, I'm at 18.5 years, but this time I'm going to stick it out. Worst case scenario, I'll apply for jobs during my long service leave. I'm not missing out twice brah.

    • kiriakoz on 14/01/2024 - 15:53

      Sorry 18.5 years total. About 9-9.5 at my current company. It does seem like 9 years is my threshold generally but I’m going to wait for my long service leave and then assess my options.

  • Sinnerator on 13/01/2024 - 08:56

    Look for a new job and listen to the $$$

  • Socialsuicide01 on 13/01/2024 - 10:45
    +2

    With regards to long service leave I have always viewed it as a safety net not be used until you absolutely have to. Break a leg, maybe a bit bowel cancer, loose a few fingers doing some DIY, joint replacement etc, you will be very thankful that the LSL is there ready to go. Waiting for income insurance has a wait time and limitations, I have always seen LSL as a type of insurance. I have loads, and as I get older I may need it, if not then I'm off to a good start when I retire.

    • knobbs on 16/01/2024 - 10:45

      I believe (could be wrong) income insurance needs you to go without any income for X period before they pay. Taking lsl would just extend out X period till you stop getting paid

  • DelhiBelly on 13/01/2024 - 11:24

    Little off topic, but anyone in $180k - $200k salary range will be better off tax wise if the quite the job post 30 June (assuming Stage 3 Tax Cuts are still a go).

  • SaberX on 13/01/2024 - 12:50

    Is it different outside of WA? As far as I know anyone who hits the 7 yrs mark gets a pro rata of lsl relating to the 10 yr entitlement. So staying to 10 yrs only means formally using the leave , so in OP case leaving earlier would still get the same monetary equivalent pro rata. Sure they can't apply to use the leave but they can also just start work later in their next job and take the equivalent weeks breaks.

    That said I learnt the hard way too that super isn't paid out when you get your paid out leave so you will miss out on Super guarantee on whatever your pay out is. So just over 10% …..

    • pangwen on 13/01/2024 - 18:20

      Nope - pro-rata for resignations between 7-10 years is only for Vic/WA/SA/ACT. Voluntary resignations between 7-10 years mean you forfeit LSL in NSW/QLD/TAS/NT (although you do get pro-rata in Tas and NT for retirements).

  • conza on 13/01/2024 - 13:29
    +1

    If you're outgrowing the company, help move it in a direction you want to go. If you like your job and your boss, you're probably doing better than most people, stay.

  • vengeance88 on 13/01/2024 - 15:26
    +1

    Stay at the current job. Will take 17 months to book your mega trip and get all excited!

  • ToyotaCrownHybrid on 13/01/2024 - 16:49

    25% payrise elsewhere puts you in a better position for those 17 months. you can then quit that new job and takes 2 months AL or you'll have earned AL there to be about 1.5 months so do that and you're better off.

  • Daddy Chill on 13/01/2024 - 17:23
    +1

    Bikies

  • Smol Cat on 13/01/2024 - 17:39
    +2

    Oh man I am almost in the exact same situation as you. Same feelings and everything. Except I have a month long Europe trip planned for end of this year already and hopefully that will stem me over until mid next year for the LSL.

    I’m really glad I came across your post as some of the comments have really helped me decide that I should stay on until LSL and then make a decision from that point.

    I’m really a lot of comments about X% pay rise and you’ll be even in X months etc. but to me honestly it isn’t only about the money in the end. It’s about fulfilment and enjoyment and feeling like
    I’m making a difference in a role as well as how it affects your life outside of work. Sure some more money would be nice but certainly it is not the end all. I’d be interested to know what you eventually decide on!

  • endolphin on 13/01/2024 - 21:51

    As someone who had a 3 month Europe holiday after about 7 years with one company (and appreciated the fact that my work accommodated that), I vote to stay and work take the holiday. Best 3 months of my life, no question.

  • Seaeagles on 13/01/2024 - 22:30

    I worked at a company who had a lot of employees who had spent their whole working life there.
    Many of them when getting close to retirement would take 12 months off using LSL and annual leave and then retire without working a day after that leave.
    Basically the last year of employment was a 12 month paid holiday.

    I worked there for 18 years and got redundancy, paid 84 weeks for that plus another 20 weeks for my LSL.
    Current place of employment (state government) I have 11 years service and haven't even thought about taking my LSL.

  • yamahamoto on 13/01/2024 - 23:29

    I was 6years 10 months at my previous job when I got the offer to start my current job. I told them I need to reach 7 years for LSL so I will start the new role a bit later than usual. Unfortunately they find it understandable and agreed.

  • chuns on 14/01/2024 - 00:05
    +1

    I voted you should stay and take that 3 months. Even better, ask if they can do half pay LSL to stretch it to 6 months off. I just came back from my LSL (6 months @ half pay) and was the best decision to make. You're already nearly at 10 years, less than 1.5 years remaining, use the time now to wrap up your work, identify what skills you want to improve on for your next role, burn through personal leave and slap on your annual leave with your LSL to make it extra long :).

    No one ever regrets taking long service leave… you've earnt it so use it well. Also, in some organisations, you accumulate leave while on leave…. I know I did haha.

    The other strategy to get through the last 1.5 years is to use one (1) day of annual leave every week to give you a four (4) day work week* (depends how much annual leave and personal leave you have).

    • ryefig on 15/01/2024 - 08:24

      Half pay LSL, I didn't consider that at all.

      What did you do in your 6 months off if you don't mind me asking?

      • chuns on 15/01/2024 - 11:57
        +2

        Japan for 10 weeks (with wife and 2 kids). Remaining time tried to get through backlog of 'house jobs'.

        For me, the backlog of 'things to get done' started to take a toll… so the LSL came in well to rest, be fully detached from work, return with energy to get through all the stuff that needs doing, before heading back to work.

        Also, consider that even though it's 'half pay', depending on your salary and tax bracket, you'll get around 2/3 of your usual pay when on 1/2pay LSL. Which is great and a lot of people oversee that. So for me, I was effectively getting 2/3 of my usual pay (after tax) while on 1/2pay LSL.

  • IM-Cheap on 14/01/2024 - 01:51

    I'd stay because it would be difficult to take such a big block of leave, paid or not, in a new job. Alternatley interview for roles making it clear you have this trip booked already and only sign on if they're ok with that.

  • s1Lence on 14/01/2024 - 06:21

    3 months is a huge vacation, how would you spend it overseas? What will the main recreational activities be?

  • YodaBaby on 14/01/2024 - 09:23

    Don't forget to cash out long service leave if you do not use it when you leave the company. My previous employer didn't pay me and kept quiet about it until I discovered the non-payment. I had to contact HR, and then Payroll to dispute. It was tedious & stressful.

  • TheBilly on 23/01/2024 - 14:23

    Same boat.

    Stay and take the holiday.

    That's what I'm doing.

    Plus skills and all this other hoo haa are great but once you find a comfortable role where you have no complaints, what price can you put on piece of mind.

    People who are established and paid well but have the itch to expand and leave under these falsely developed ideas just need more hobbies and extra curriculars to focus on.

  • Joshaz on 24/01/2024 - 11:27

    Firstly, it's your decision and yours alone, so who are we to judge. Plus there's probably a lot of other factors that will go into what you decide to do.

    If I was in your situation, I would:

    A) If I had the time/energy, I'd look at other jobs, and only after getting an offer, then contemplate how the new organisation's offer compete with the status quo (and decide to either stay or leave). Even just the practice of job hunting, even after some initial disappointments, leads to good experience in the process, which will benefit later. Particularly when I've sought a promotion, I probably bomb at least two interviews, miss out on a few more, and then feel really ready to win the next.

    or

    B) If I didn't have the time and energy to look for other roles for whatever work or private reasons, I'd stay and get/take the long-service leave.

    Thinking off the top of my head, an additional benefit of taking the long-service is that one continues to accumulate leave while on long service leave. Personal/sick leave would be irrelevant if leaving the organisation (assuming they don't pay it out), but it could benefit with annual leave etc continue to grow.

    Others above have mentioned the cash-out option, and that may (or may not) come with pros and cons relating to tax.

  • OzChick on 06/02/2024 - 12:55

    I took my LSL and used it as a career break i.e. I got another job in a different industry. At least I had that as back up in case the new job did not work out.

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