Longserviceleave.com

Guide · Australia

Is long service leave paid out when you leave?

When you reach the full entitlement, your employer must pay out your unused long service leave when you leave. This applies in every state and territory, whatever the reason. Before you reach it, the result depends on your state's pro rata rules and on the reason your job ended. In WA and the NT, the Act also reduces the payout if your employer dismisses you for serious misconduct.

By Sri Murugan Systems · Rules last reviewed

  • 4 min read
  • 6 sections

Key points

  • After the full entitlement, your employer must pay out unused leave for any reason in every state and territory.
  • If you leave before the pro rata window starts, you get nothing.
  • In WA and the NT, dismissal for serious misconduct reduces the payout.
  • In the ACT, your employer must pay within 90 days of the end of your job.
  • Cash out while you are still employed is a different question, and the rules vary a lot.
On this page
  1. Payout when you leave, by state
  2. When your employer must pay
  3. Part years after the full entitlement
  4. If an employee dies
  5. Cash out while you are still employed
  6. A note on the NT
  7. Common questions
  8. Related guides

Payout when you leave, by state

This table shows what happens to unused leave under each state Act.

StateBefore pro rataPro rata windowFull entitlement reachedDismissed for serious misconduct (after the full entitlement)
NSWUnder 5 years: nothing5 to 10 years: listed reasons only10+ years: paid for any reasonStill paid
VICUnder 7 years: nothingNone7+ years: paid for any reasonStill paid
QLDUnder 7 years: nothing7 to 10 years: listed reasons only10+ years: paid for any reasonStill paid
WAUnder 7 years: nothing7 to 10 years: any reason except serious misconduct10+ years: paid for any reasonYou get only the untaken part of your last full entitlement. You get no pro rata for later years (s 8(2)(c)(ii))
SAUnder 7 years: nothing7 to 10 years: any reason except serious and wilful misconduct or unlawful termination10+ years: paid for any reasonStill paid
TASUnder 7 years: nothing7 to 10 years: listed reasons only10+ years: paid for any reasonStill paid
ACTUnder 5 years: nothing5 to 7 years: listed reasons only7+ years: paid for any reasonStill paid (s 11A)
NTUnder 7 years: nothing7 to 10 years: listed reasons only10+ years: paid for any reasonYou get only completed 10-year or 5-year blocks (s 10(1A))

When your employer must pay

In NSW, your employer must pay immediately on termination (s 4(5)(a)). In Victoria, your employer must pay on the day your employment ends (s 9). In WA, your employer must pay the full amount on the day of termination (s 9(2A)). In SA, your employer must pay immediately (s 8(4)).

In the ACT, your employer must pay within 90 days of the end of your job. If your employer does not do this, it is an offence from 19 November 2025 (s 11A(4)). In the NT, your employer must pay as soon as practicable. If the employee dies, your employer must pay no later than 12 months after the death (s 11(7)).

Our rules data does not give a specific payment deadline for Queensland or Tasmania. In Tasmania, the Act treats your leave as if it started on your termination date (s 12(4)).

Check your own numbers

Pick your state. The calculator uses that state's Act and shows the working.

Part years after the full entitlement

NSW, Queensland and Tasmania count part years in the final payout. Victoria counts every week of continuous employment. WA, SA, the ACT and the NT count completed years only after the full entitlement.

The official guidance gives these examples. In Queensland, 12 years gives 10.4 weeks. In WA, 12 years gives 8.667 + 1.733 = 10.4 weeks. In SA, 12 years 6 months gives 12 x 1.3 = 15.6 weeks.

If an employee dies

The payment goes to the employee's personal representative or estate. In NSW, the employer pays it on request (s 4(5)(b)). In Queensland, the employer must pay the unpaid amount to the legal personal representative (s 111). In the NT, the employer pays it on request (s 10(3)) and within 12 months (s 11(7)).

Cash out while you are still employed

Cash out while you are still employed is a different question from payout when you leave. The rules vary a lot between states.

StateCan you cash out while you are still employed?Section
NSWNo. The Act allows payment in lieu only when employment endss 4(8)
VICNo, except where another law or a fair work instrument permits its 34
QLDOnly under an industrial instrument with a signed agreement, or if the Commission orders it on compassionate or financial hardship groundss 110
WAYes, after the leave fully accrues. You need a signed written agreement, and the pay must be no less than ordinary pays 5
SAYes, if both parties sign a written agreements 5(1a)
TASYes, after you become entitled, if you and your employer agrees 10
ACTThe Act has no provision that allows it. Payment in lieu is available only when you leavess 11A, 14
NTNos 10(4)

A note on the NT

The NT government website says that payout applies only for certain reasons. It also says that, after you use the 10-year leave, payout applies only to each completed five years. The Act pays the whole credit for any reason after 10 years. It limits payment to 5-year blocks only if your employer dismisses you for serious misconduct (s 10(1), s 10(1A)). This site follows the Act.

Common questions

Is long service leave paid out if I resign after 10 years?

Yes. When you reach the full entitlement, your employer must pay out unused leave for any reason. This applies in every state and territory.

I want to resign after 8 years. Will I get a payment?

In Victoria, WA and the ACT, yes. In SA, yes, if you gave the notice that your contract requires. If you make an ordinary resignation at 8 years in NSW, Queensland, Tasmania or the NT, you get nothing.

Is long service leave paid out on redundancy?

Yes, if you are within your state's pro rata window or past the full entitlement. If you are below the pro rata window, your employer pays nothing.

Can my employer withhold my payout?

In SA, if you resign between 7 and 10 years without the required notice, your employer can legally withhold pro rata leave (s 5(4)). In WA and the NT, dismissal for serious misconduct reduces the payout.

Is the payout taxed?

Yes. ATO rules apply tax to unused long service leave that your employer pays on termination. These rules depend on when the leave accrued. See our [tax guide](/tax/).

GuideHow unused long service leave is taxedGuidePro rata long service leave across AustraliaGuideIs super paid on long service leave?GuideIs leave loading paid on long service leave?GuideLong service leave and CentrelinkLetterLetter template: ask to be paid out when you leave

Rules last reviewed 3 November 2026. Every figure comes from the state Acts, the regulators and the ATO; see sources and method.

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