10/05/2023

Australia is the only country in the world to have a legislated long service leave system and the rules in the state of South Australia are the most generous.

Full-time, part-time and casual workers in South Australia are entitled to 13 weeks additional leave after 10 years of continuous service with a pro-rata entitlement kicking in at the seven-year mark.

Long service leave was introduced in recognition of Australia’s isolation at the bottom of the world to allow workers and their families the time to travel back to the UK or Europe to visit relatives.

This extra leave was especially important back in the days when the majority of overseas trips from Australia were by ship, taking a number of weeks to complete.

The scheme started in South Australia in the 1960s but in those early days, employees had to work 20 years with the same employer to be eligible.

How is long service leave calculated?

Since 1987 in South Australia, long service leave has accrued at 1.3 weeks per year but it cannot usually be taken until a worker has been with the same employer for a decade. In most other Australian states workers accrue long service leave at a rate of about 0.87 weeks per year, allowing them two months of paid leave after a decade.

Long service leave only recognises full years of service and must be paid out in full when a worker finishes up with an employer.

For example, if an employee leaves a job after 12 years and six months without taking any long service leave, they are entitled to 15.6 weeks’ pay (12 x 1.3 weeks).

For part-time workers, total pay is calculated by their average weekly hours over the previous three years (156 weeks), multiplied by their final hourly rate of pay, multiplied by 1.3 weeks per year.

What is pro rata?

Pro rata is a Latin term meaning in proportion. When it comes to long service leave in South Australia, pro rata means most workers are entitled to be paid out their entitlement if they leave employment after seven years or more. This is also paid out at the rate of 1.3 weeks per completed year of continuous service.

A worker is not entitled to a pro-rata payment if their employment is terminated on the grounds of serious and wilful misconduct or if the contract of service is unlawfully terminated by the worker (such as failure to give the required amount of notice).

Some employers will allow staff access to their long service leave after seven years while they are still employed but they are under no obligation to do so until 10 years’ service is reached.

Are casual workers entitled to long service leave?

In South Australia, casuals who fulfil the requirement of 10 years of continuous service (or seven years for pro-rata) have an entitlement to long service leave.

Casual workers can obtain their entitlement through a series of contracts – it does not have to be a single contract of employment.

A casual’s long service leave is calculated by averaging the number of hours worked over the three years (156 weeks) immediately prior to taking leave. It will be paid at the current base hourly rate of pay as a casual worker, including the casual loading of 25 per cent in South Australia.

Long service leave can be complicated, making it one of the most common queries of people contacting SafeWork SA’s call centre.

However, there is a vast array of useful information about the topic on SafeWork SA’s Long service leave page.

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