Long Service Leave Fact Sheet
Your employee’s entitlement to Long Service Leave will come from the provisions under either the State Act or the Federal Award.
Long Service Leave Act 1987 (SA) (the State Act)
MTA members who began their membership with the MTA after the 26th of March 2006 will have the State Act apply to all their employees.
Pursuant to section 5 of the State Act, an employee who has completed 10 or more years of continuous service with their employer is entitled to
- 13 weeks’ LSL in respect of the first 10 years of service; and
- a further 1.3 weeks per completed year of service thereafter.
Under the State Act, where an employee has worked continuously for an employer for more than 7 years but less than 10 years, the employee is entitled to pro-rata LSL.
An employee under the State Act who has not completed 10 years’ continuous service is not entitled to physically take a period of LSL.
Vehicle Industry – Repair, Services and Retail (Long Service Leave) Award 1977 (the Federal Award)
MTA members who began their membership with the MTA prior to the 26th of March 2006 will have retained the pre-modernised award-derived long service leave terms. This means that Members who joined prior to 26 March 2006 will have their employees who are employed under the Vehicle, Repair, Services and Retail Award 2020 (italics) come under the Federal Award.
However, any employees employed under a different Award, for example, the Clerks – Private Sector Award 2020 (italics), will have the State Act apply to them.
Pursuant to section 6 of the Federal Award, an employee who has completed 15 or more years of continuous service with their employer is entitled to
- 13 weeks’ LSL in respect of the first 15 years of service; and
- a further 0.8666 weeks per year of service thereafter on a pro-rata basis.
Under the Federal Award, where an employee has worked continuously for an employer for more than 10 years but less than 15 years, the employee is entitled to pro-rata LSL.
An employee under the Federal Award who has not completed 15 years’ continuous service, is not entitled to physically take a period of LSL.
Periods of unpaid leave do not count towards service but they do not necessarily break an employee’s continuous service.
It is possible for an employer and employee to agree to the cashing out of a period of long service leave rather than taking the leave physically. An agreement must be in writing and signed by both parties. Please refer to the attached template.
*Please note that cashing out of LSL is not an option under the Northern Territory LSL Act 1981.
