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Long service leave when you are made redundant in Victoria

In Victoria, redundancy follows the same rule as every other reason for leaving. With seven years or more of continuous employment you are paid your full accrued long service leave. Under seven years you get nothing (s 9).

Victoria has no special pro rata ground for redundancy. The only question is whether you have reached seven years of continuous employment.

If you have, you are paid your total weeks of employment divided by 60, less any long service leave already taken (s 6). You are treated as starting your long service leave on the day your employment ends, and you must be paid that day (s 9).

If your hours were cut before the redundancy, check the averaging rules. Where your hours changed in the 104 weeks before your employment ends, your normal weekly hours are the greatest of your 52-week, 260-week or whole-of-employment averages (s 16). In the Victorian guide, Sonia's hours dropped from 38 to 24 in her last 26 weeks, but she was still paid at 37.1 hours a week.

If the business is sold and the new owner keeps you on, your start date stays the same and the new owner is liable for all your accrued long service leave (s 11(3)-(4)). If you are dismissed and the new owner re-employs you within 12 weeks, the same applies (s 11(5)). In that case you are not paid out, because your employment continues.

If your employer re-employs you within 12 weeks of ending your employment, your continuous employment is not broken (s 12(6)). The gap is not added to your service (s 14(b)).

If your employer ends your employment to avoid paying long service leave, your continuity is not broken (s 12(4)).

Common questions

Is long service leave paid on redundancy in Victoria?

Yes, if you have at least seven years of continuous employment. You get your full accrued entitlement on the day your employment ends (s 9).

I was made redundant after five years in Victoria. Do I get anything?

No long service leave is payable before seven years, even on redundancy.

My employer sold the business and the new owner hired me. Is my long service leave paid out?

No. Your service carries over and the new owner is liable for all your accrued long service leave (s 11(3)-(5)).

Official sources

Rules last reviewed 3 November 2026.