Is long service leave paid out when an employee terminates?

Terminating employees are entitled to be paid out long service leave as follows:

  1. The employee as completed between 10 and 15 years of service – calculated on the basis of 3 three months of longs service leave paid pro-rata on 15 years of service, or
  2. The employee has completed at least 5 years of service – calculated on the basis of 2 months of long service leave paid pro-rata over 10 years of service – where the:
  • employer terminates the employment for any reason other than serious and wilful misconduct, or
  • employee resigns on account of illness, incapacity or domestic or other pressing necessity, or
  • employee has died.

Long service leave entitlements are paid at the employee’s current ordinary rate of pay (which does not include shift loadings or overtime) or an average of the last five years’ gross ordinary pay earnings, whichever is the greater.

For more information on long service leave and termination go here, or contact the member infoline on 1800 991 602.