Longserviceleave.com

Pro rata long service leave in NSW

In NSW you can be paid long service leave before ten years, but only if you have at least five years of service and your job ended for one of the reasons the Act lists (s 4(2)(a)(iii)).

Pro rata means a proportionate payment for the service you have. In NSW it is worked out on the basis of two months (8.67 weeks) for ten years of service, which is about 0.87 weeks for each year (s 4(2)(a)(iii)). NSW Industrial Relations counts part years, so months and days of service add to the total.

The window is from five years up to ten years. With less than five years of service, nothing is payable, whatever the reason your job ends.

Between five and ten years, the reason you leave decides whether you are paid. You qualify if your employer ended your employment for any reason other than serious and wilful misconduct, including redundancy. You also qualify if you resigned because of illness, incapacity or domestic or other pressing necessity, or if you died (s 4(2)(a)(iii)). An ordinary resignation does not qualify.

Retiring between five and ten years is not a listed reason on its own. It qualifies only if it fits one of the listed reasons, for example if you stop work because of illness or incapacity. The end of a fixed-term contract or a run of casual engagements may count as your employer ending the employment, depending on the facts.

The burden of proof is split. If you say you resigned because of illness or pressing necessity, you need to show that on the balance of probabilities. If your employer says you were dismissed for serious and wilful misconduct, your employer has to prove it, and the conduct must be both serious and wilful.

NSW Industrial Relations gives this example. Dean worked part-time for five years and six months, then his employer closed the store. Because his employer ended the employment, he was paid 4.76 weeks pro rata. The payment is due as soon as your employment ends (s 4(5)(a)).

Periods that do not count as service, such as agreed unpaid leave or unpaid parental leave, are left out of your service. That can drop you below five years, so check your dates.

Common questions

Is pro rata long service leave paid after five years in NSW?

Yes, but only if your employer ended your employment (not for serious and wilful misconduct), you resigned because of illness, incapacity or pressing necessity, or you died (s 4(2)(a)(iii)).

How is pro rata long service leave calculated in NSW?

On the basis of 8.67 weeks for ten years of service, or about 0.87 weeks per year, including part years. You are paid that many weeks at your ordinary pay.

Do I get pro rata if I retire at 65 with eight years of service in NSW?

Not just for retiring. Retirement is not a listed reason, so you qualify only if your retirement fits one of the listed reasons, such as illness or incapacity.

Does dismissal for misconduct stop pro rata long service leave in NSW?

Only if the misconduct was both serious and wilful, and your employer has to prove it (s 4(2)(a)(iii)). A dismissal for any other reason between five and ten years still gets pro rata.

Official sources

Rules last reviewed 3 November 2026.