State Long Service Leave (LSL) is a legislated entitlement that allows Workers to take paid leave after a long period of service with an Employer. It is governed by the Long Service Leave Act 1987 (State LSL Act), which sets out how much leave a Worker accrues based on their years of service and average hours worked per week.
How State LSL relates to the Portable scheme
Now that the Portable Long Service Leave scheme has started, we need information from each Employer because the scheme uses State LSL data to:
- Verify service periods to ensure each Worker’s continuous service is accurately recognised.
- Prevent double counting or gaps – combining information across Employers ensures Workers don’t lose entitlement if they change jobs within the sector.
Without accurate information from Employers, the scheme cannot correctly calculate a Workers LSL entitlement. Providing State LSL details ensures employees receive their full entitlements, and the scheme maintains integrity across the sector.
Why we need State LSL information in 'Weeks'
The Portable Long Service Leave (PLSL) scheme requires LSL balances to be reported in weeks. This is because the State LSL legislation calculates leave entitlements based on weeks of service, not hours. Providing accurate week-based information ensures Workers service is correctly recognised and their entitlements match the legislation.
How to convert 'Hours' to 'Weeks'
Different payroll systems may record hours in different ways, so the method below is a guide and may need adjustment depending on your system.
Here’s how it works:
1. Calculate average weekly hours
Example: A Worker's hours over years 8–10:
- Year 8: 10 hours/week
- Year 9: 20 hours/week
- Year 10: 30 hours/week
Average at end of year 10 = (10 + 20 + 30) ÷ 3 = 20 hours/week
2. Determine weeks of leave entitlement
Under the Long Service Leave Act 1987, Worker's accrue 1.3 weeks of LSL for each full year of service.
Example:
- 10 years of service → 10 × 1.3 = 13 weeks of LSL
3. Convert weeks to hours if needed
If your system requires hours rather than weeks, multiply the number of weeks by the average weekly hours at the relevant point.
Example:
- Year 10: 13 weeks × 20 hours/week = 260 hours
- Year 11 (average hours increase to 21.667/week) → 13 weeks × 21.667 hours = 281.67 hours
4. Keep in mind
- Look at the Worker's hours over the relevant period (for example, the last three years).
- Hourly payouts may change over time if the Worker's average weekly hours increase, even if the number of weeks of leave stays the same.
- Your payroll system may round decimals differently or calculate averages slightly differently. Treat the steps above as a practical starting point rather than a strict formula.
5. Quick reference
- 7 years of service = 9.1 weeks
- 8 years of service = 10.4 weeks
- 10 years of service = 13 weeks
- 11 years of service = 14.3 weeks
Providing LSL information in weeks helps the PLSL scheme consistently track Worker's service across the sector while accounting for variations in working hours.
Need help
We have a step-by-step guide to walk you through this process. You can find it here.