10 Years’ Service in Australia: What Employers Should Know

Hitting 10 years’ service is a big milestone for your team member - and a key compliance moment for you as an employer.

From long service leave to payroll and final pay scenarios, there are a few legal and practical steps to get right, so your business stays compliant and your people feel valued.

In this guide, we’ll unpack what “10 years’ service” means in Australia from a small business perspective, how long service leave works across states and territories, what to do if employment ends around this time, and the policies and contracts you should have in place to manage these requests smoothly.

What Does “10 Years’ Service” Mean For Your Business?

“10 years’ service” typically refers to continuous service with your business for a decade. It matters because, in many Australian jurisdictions, employees become entitled to long service leave at the 10-year mark. It can also impact how you plan rosters, budgets and staffing for the year ahead.

Here’s why this milestone is on the employer compliance calendar:

• Long service leave accrual and entitlements may crystallise or step up at 10 years (details differ by state).
• Employees often plan extended time off at this point, so you’ll want to manage rostering and backfilling early.
• If an employee resigns or is made redundant around 10 years, you’ll need to calculate any long service leave payout and ensure their final pay is correct.
• Recognition programs (awards or gifts for service) may trigger HR and payroll processes you’ll want to standardise in a policy.

While 10 years is a common trigger point, long service leave law is state-based. The amount of leave, how it accrues, pro rata access and payout rules differ across jurisdictions. Keep reading - we’ll cover the big rules and how to manage them in practice.

Long Service Leave: When Does It Kick In And How Do You Calculate It?

Long service leave (LSL) is a period of paid leave for employees who have worked for the same employer for a long time. It’s legislated at the state and territory level, so the exact entitlements vary. However, many schemes grant around 8.67 weeks (2 months) after 10 years, with additional leave for every subsequent 5 years. Some states grant access earlier than 10 years.

Key Things Employers Should Check

• Which state or territory law applies (usually where the employee does most of their work).
• The employee’s continuous service, including any authorised absences that count for accrual (parental leave rules can differ).
• Any industrial instrument (award or enterprise agreement) that varies leave amounts or how to take leave.
• Your payroll records - ensure hours and service dates are accurate so you can calculate entitlements properly.

How Much Leave At 10 Years?

The amount differs by location. As examples:

• Queensland and some other states provide around 8.67 weeks after 10 years, then further leave for subsequent service. If your team is in Queensland, our guide to calculating pro rata long service leave in Queensland explains the numbers in more detail.
• Victoria’s scheme allows access earlier, and the accrual method is different. See how it works in our overview on how to calculate long service leave in Victoria.
• Western Australia has its own rules for accrual and taking leave. Employers should review our WA long service leave compliance guide.

If you’re not sure where to start, you can estimate entitlements with our Long Service Leave Calculator and then confirm with tailored advice for your jurisdiction and award coverage.

Does Long Service Leave Accrue During Parental Leave?

In many jurisdictions, certain types of leave (like paid parental leave and some unpaid leave) may count towards “continuous service,” but this is an area where local rules diverge. It’s important to check whether LSL accrues during the specific type of parental leave your staff member has taken. For a deeper dive into this question, see our guide to long service leave accrual during maternity leave.

Can Employees Access Pro Rata Leave Before 10 Years?

Often, yes. Many jurisdictions allow pro rata LSL after a minimum period (commonly after 7 years) in certain circumstances, such as resignation, dismissal not for serious misconduct, or illness. The details and thresholds vary by state, so always check the local rules that apply to your employee.

Managing Leave Requests And Rostering For Long-Serving Staff

Once an employee approaches or reaches 10 years, expect discussions about taking a block of leave. Planning ahead helps you stay compliant and minimise operational disruption.

Plan Early And Communicate

• Encourage staff to signal their plans 6-12 months in advance so you can line up coverage and training.
• Document how far in advance a request should be made, how to apply, and any blackout periods in your Staff Handbook or Leave Policy.
• Be consistent - treat similar requests the same way and keep records of approvals and reasons for any changes.

How Can Leave Be Taken?

Most laws allow long service leave to be taken in one continuous block or in smaller periods by agreement. Some jurisdictions allow payment in lieu in limited situations. The permitted minimum block size and timing rules differ by state, so check your local legislation or award.

Payroll And Cash Flow Considerations

• Confirm the ordinary pay rate used to calculate LSL, including treatment of loadings or allowances if applicable under the local law and any award.
• Budget for the liability - many businesses accrue the cost on their balance sheet once employees become eligible.
• Automate where possible. Your payroll system should track service dates and accrual rules per state to reduce manual errors.

Finally, think about the employee experience. A transparent, fair process goes a long way toward retention - which is often the reason employees reach 10 years in the first place.

What Happens If Employment Ends Around The 10-Year Mark?

Employment may end close to or after 10 years’ service for various reasons (resignation, redundancy, mutual separation, or dismissal). Your obligations will depend on the reason for ending employment and the jurisdiction.

Long Service Leave Payouts On Termination

In many jurisdictions, accrued but untaken long service leave is paid out when employment ends after the relevant threshold period (which can be earlier than 10 years in some states). For a general overview of how a payout works, see long service leave payouts on resignation and then apply your state’s rules.

Redundancy Pay And Notice

Under the National Employment Standards (NES), redundancy pay scales with service length, peaking just before 10 years and then resetting at 10+ years. You’ll also need to give the correct notice (or pay notice in lieu) and follow consultation requirements under any applicable award.

• Use a tool or process to calculate redundancy entitlements correctly. Our Redundancy Calculator is a useful starting point when planning changes to your workforce.
• If notice can’t be worked, ensure you handle payment in lieu of notice correctly, including super and tax treatment where required.

Final Pay Checklist

When employment ends, you’ll need to process final pay accurately and on time. This may include ordinary wages up to the last day, unused annual leave, long service leave (if applicable), redundancy pay and notice, plus any contractual entitlements. To help you stay organised, refer to our employer guide on calculating final pay.

Make sure the reason for termination is well-documented, and that you’ve complied with all consultation or procedural fairness requirements under the Fair Work Act or any relevant award, as well as your internal policies.

Policy, Contracts And Payroll: Documents To Keep Up To Date

Good documentation makes long service leave easier to manage. It also reduces the risk of disputes when someone reaches 10 years’ service or leaves the business.

Essential Employment Documents

• Employment Contract: Set expectations for entitlements, approval processes for leave, and evidence requirements (noting that state LSL law prevails if there’s a conflict).
• Staff Handbook or Workplace Policies: Outline how to request long service leave, minimum notice for requests, how leave is scheduled, and who approves it.
• Payroll Records: Accurate time and wage records, service start dates and approved leave dates are crucial evidence if a dispute arises.
• Letters And Forms: Standard templates for approving or declining leave requests, and for confirming final pay breakdowns at termination.

Practical Tips For Clean Processes

• Audit service dates annually. Flag team members approaching 10 years so you can start the conversation and plan resourcing.
• Align leave approval processes with operational cycles (for example, avoid peak trading periods or schedule handovers before critical projects).
• Train your managers to handle requests consistently and escalate complex cases (like cross-jurisdictional service or multiple absences).
• Check industrial instruments. If an award or enterprise agreement applies, confirm whether it modifies how long service leave is calculated or taken.

Handling Multi-State Teams

If you operate across multiple states, your obligations can differ even for similar roles. Build a central process that captures the jurisdiction for each employee and automatically applies the correct rules to their accrual and leave request. Where roles move interstate, review whether the applicable LSL law changes and how continuous service is treated.

Frequently Asked Questions About 10 Years’ Service

Can I Require Employees To Take Long Service Leave At A Certain Time?

In some jurisdictions, an employer can direct an employee to take long service leave at a time that suits business needs, provided certain notice requirements are met and the request is reasonable. Always check your local legislation and any award terms before issuing a direction, and communicate early to avoid disruption.

Can Long Service Leave Be Cashed Out Instead Of Taken?

Some states allow limited cashing out by agreement; others require the leave to be taken as time off. The rules are strict, so confirm your local requirements before agreeing to any cash out arrangement. Even where permitted, document the agreement clearly and ensure the employee is not under undue pressure to cash out.

What Happens To Long Service Leave If We Sell The Business?

On a business sale, there are special rules about whether service transfers to the buyer and who is responsible for accrued entitlements. This is typically addressed in the sale contract and by law. If you’re selling or buying a business, plan ahead so you can price and allocate this liability correctly and keep employees whole.

Do Contractors Get Long Service Leave?

Generally, independent contractors don’t accrue LSL under the standard state schemes. However, misclassification risk is real - if a worker engaged as a “contractor” is in substance an employee, entitlements could apply. Some industries also have portable long service leave schemes. If you have long-term contractors, review their arrangements carefully.

How Does Long Service Leave Interact With Other Leave?

Long service leave is separate from annual leave and personal leave. The order in which leave is taken and how public holidays are treated during LSL is determined by local law. As a rule of thumb, check whether a public holiday during LSL extends the leave or is treated as part of it in your jurisdiction.

How To Put This Into Practice: A Simple Employer Checklist

If one of your team members is approaching or has hit 10 years’ service, use this quick checklist to stay on track.

1. Confirm continuous service dates, the applicable state or territory law, and any relevant award terms.
2. Estimate the employee’s entitlement using the Long Service Leave Calculator and cross-check locally.
3. Discuss timing early, agree on how the leave will be taken, and record the approval in writing.
4. Update rosters and handovers, and plan payroll cash flow for the leave period.
5. If employment is ending, calculate entitlements accurately (including LSL payout where applicable), using our guides on final pay and the Redundancy Calculator if relevant.
6. Review your Employment Contract templates and Staff Handbook to ensure your policies reflect current law and your processes.

Key Takeaways

• “10 years’ service” is a key milestone for long service leave, but exact entitlements depend on state or territory law and any applicable award or agreement.
• Plan ahead for extended leave - use clear policies, early conversations and accurate payroll records to manage requests smoothly.
• If employment ends around the 10-year mark, double-check long service leave payouts, redundancy obligations and final pay requirements.
• Keep your documents up to date: strong Employment Contracts, a practical Staff Handbook and consistent HR templates reduce risk and confusion.
• For multi-state teams, build processes that apply the right jurisdiction’s rules to each employee and review if roles move across borders.
• When in doubt, get tailored advice - it’s the best way to ensure compliance and protect your business as your team reaches major service milestones.

If you’d like a consultation about managing 10 years’ service and long service leave in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.