Can You Work During Long Service Leave in Victoria?

Long Service Leave (LSL) is a well‑earned break after many years of service - but what if you also want to pick up extra shifts elsewhere, do some freelance work, or grow a side business while you’re away?

If you’re in Victoria, the rules around working during LSL aren’t always obvious. You need to consider your contract, any workplace policies, competition and confidentiality obligations, and how your LSL pay and super may be affected.

In this guide, we’ll walk you through how LSL works in Victoria, whether you can legally work for someone else or yourself during your leave, and the practical steps to protect yourself (or your business, if you’re an employer).

What Is Long Service Leave In Victoria?

Long Service Leave in Victoria is governed by the Long Service Leave Act 2018 (Vic). In simple terms, it provides paid leave after a long period of continuous employment with the same employer.

Most Victorian employees become entitled to LSL after 7 years of continuous service (pro‑rated if you leave after 7 years but before 10), with further leave accruing the longer you stay. How much you get and how it’s paid will depend on your work history and your employer’s payroll practices.

If you’re looking for a practical overview of timing and entitlement milestones, our guide to Long Service Leave in Victoria explains how entitlements typically accrue and when they can be taken.

LSL is separate from annual leave and personal/carer’s leave. It’s an additional entitlement designed to recognise loyalty and longevity with the same employer.

Can You Work For Another Employer During Long Service Leave?

There’s no single rule in Victoria that automatically bans working for another employer while you’re on LSL. However, whether you can work elsewhere depends on several overlapping rules and documents that apply to you:

• Your Employment Contract: Many contracts include clauses about secondary employment, conflict of interest, confidentiality, and post‑employment restraints. These clauses often apply while you remain employed - including during LSL. Review your Employment Contract before accepting any other paid work.
• Workplace Policies: Some employers have a written policy requiring you to seek approval for any secondary work, or prohibiting work for competitors. Check your Workplace Policy or staff handbook, as breaching a policy can lead to disciplinary action.
• Awards or Enterprise Agreements: If you’re covered by a modern award or enterprise agreement, it may contain obligations around outside work or confidentiality that continue during leave.
• Common Law Duties: Employees owe duties of fidelity and good faith to their employer. Working for a direct competitor, using confidential information, or soliciting clients while on LSL can breach these duties.

Put simply, working elsewhere during LSL isn’t automatically unlawful - but it can be risky if the outside work conflicts with your obligations or undermines your current employer’s business.

As a rule of thumb, work that is casual, non‑competitive and done outside your contracted hours is less likely to cause problems, especially if you obtain written approval first. Work that directly competes with your employer (or uses their confidential information) can lead to serious issues, even if you’re on leave.

For employers, it’s sensible to set clear parameters through an employment agreement and a written policy addressing Secondary Employment, including an approval process and what counts as a conflict of interest.

What About Freelancing Or Running Your Own Business?

Freelancing or building your own venture during LSL can be appealing. The same principles apply: the legal question is whether your side work conflicts with your existing employment or misuses your employer’s information or relationships.

Ask These Questions Before You Start

• Is it a competitor? If your side business competes with your current employer - or targets the same customers - you may be in breach of your duties and any non‑compete provisions.
• Will you use confidential information? Pricing strategies, client lists, processes, and know‑how you learned at work are typically confidential and must not be used.
• Do you need permission? Your contract or policy may require written approval for secondary work or self‑employment. Ask early and get it in writing.
• Is there a restraint? Some contracts include a restraint of trade applying during and after employment. It may limit who you can work with or where you can operate for a period.
• Are there fatigue or safety risks? If you come back to work overtired or unavailable for rostered shifts because of your side gig, you could run into performance issues.

If there’s any doubt, have a proactive conversation with your employer. For employers, requiring written disclosure and approval helps manage risk, set expectations, and avoid disputes.

Where an employee proposes to hold two roles at once, it’s worth considering the implications of Dual Employment too - for example, whether rosters will clash, whether there are confidentiality walls, and how conflicts will be handled.

Pay, Super And Other Rights While On Long Service Leave

Working elsewhere doesn’t usually change your underlying LSL entitlement with your original employer, but it may have flow‑on effects if you breach your contract or policies. Keep these pay and super points in mind:

How Is LSL Paid?

• Rate of pay: In Victoria, LSL is generally paid at your “ordinary pay” rate at the time you take it. If your hours vary, your employer may need to calculate an average.
• Timing: You’re typically paid in the normal payroll cycle while on LSL for the approved period.
• Lump sums on termination: If your employment ends, any LSL payout is usually treated differently from taken leave for tax and super purposes.

Is Superannuation Payable On LSL?

In many cases, superannuation is payable on LSL taken during employment because it forms part of your Ordinary Time Earnings (OTE). However, super is generally not payable on LSL that’s paid out on termination as a lump sum. Always confirm the current ATO position and your specific award or agreement.

Can Your Employer Refuse LSL?

Employers must not unreasonably refuse a properly made LSL request, but they can propose alternative dates based on operational needs. It’s best to plan ahead, give adequate notice, and agree dates in writing.

Does Outside Work Affect Your LSL?

Doing unrelated work elsewhere doesn’t automatically cancel your LSL. But if the side work breaches your contract or policy (for example, by competing, using confidential information, or causing you to miss shifts on return), your employer may take disciplinary action. In serious cases, that could include misconduct findings or even termination - which could impact how any remaining LSL is paid out.

If you change employers and have questions about carrying service across a group or within certain transfers, it’s worth understanding when transferring long service leave may be relevant (for example, within corporate group transfers under specific circumstances). This is nuanced - seek tailored advice.

Practical Steps Before You Take (Or Approve) LSL

Whether you’re an employee wanting to do extra work, or an employer managing requests, a few proactive steps reduce risk.

For Employees

• Check your documents: Read your contract, award/enterprise agreement, and policies. Look for clauses about secondary employment, conflicts, confidentiality, and restraints.
• Be transparent: If any outside work is planned, ask for written approval, outlining the nature of the work and how you’ll avoid conflicts (no client solicitation, no use of confidential info, no overlap in hours).
• Stay non‑competitive: Choose side work that’s clearly unrelated to your employer’s business to minimise risk.
• Keep records: Keep copies of approvals and communications about your LSL dates and outside work arrangements.
• Plan your return: Ensure you can resume normal duties on the agreed date, well‑rested and available.

For Employers

• Set expectations in writing: Ensure your Employment Contract addresses secondary employment, conflict of interest, confidentiality, IP ownership, and restraints (where appropriate and enforceable).
• Adopt a clear policy: Use a Workplace Policy to explain approval processes for outside work, what counts as a conflict, and what happens if obligations are breached.
• Use an approval form: Require employees to disclose any proposed outside work, including employer details, duties, and timing. Approvals should be conditional and revocable if circumstances change.
• Manage confidentiality: Reinforce obligations to protect confidential information and client relationships during leave.
• Calculate pay correctly: Confirm how LSL will be calculated and whether super applies while leave is taken, referencing your payroll setup and OTE rules.

Clarity and documentation up front can prevent misunderstandings later. If your business doesn’t yet have robust documents in place, consider updating agreements and policies before the next LSL request lands.

Common Scenarios (And How To Handle Them)

“I Want To Pick Up Hospitality Shifts While I’m On LSL From My Office Job - Is That Okay?”

Usually lower risk. It’s unlikely to be competitive with your employer, but still seek written approval if your contract or policy requires it. Make sure the side shifts won’t affect your return to work or your availability.

“I’m A Sales Manager And I Want To Freelance For A Competitor During LSL.”

High risk. Even if you don’t intend to use confidential information, it may appear competitive and could breach your duties. Check your restraint and confidentiality obligations. Consider speaking with your employer or seeking legal advice before taking any steps.

“As An Employer, Can I Stop An Employee From Working Elsewhere While On LSL?”

You generally can prevent employees from doing work that competes with your business, uses your confidential information, or creates a conflict of interest, provided those restrictions are clearly set out in the contract/policies and are reasonable. Many businesses manage this by requiring prior approval for all secondary work and assessing conflicts case-by-case.

“Will Taking LSL Affect My Entitlements If I Change Jobs Later?”

Taking LSL doesn’t usually reduce your accrued entitlement; it’s the exercise of it. If you later move roles, specific transfer rules may apply in limited situations (for example, certain business transfers). The rules around transferring long service leave are complex - get advice if a transfer is on the cards.

“Can I Hold Two Jobs Long Term?”

Having two roles can be lawful if your contract allows it, there’s no competition or conflict, and you can meet both roles’ requirements. Employers should consider a structured approach to Dual Employment, including conflict checks and clear confidentiality measures.

How Sprintlaw Can Help

If you’re unsure whether outside work during LSL is permitted, the safest approach is to tidy up the paperwork and get clarity in writing early.

We regularly help employers and employees with:

• Tailoring or reviewing an Employment Contract to include practical, enforceable secondary employment and restraint clauses.
• Drafting a Workplace Policy on secondary employment, conflicts and confidentiality, including an approval workflow.
• Advising on whether proposed outside work is likely to breach contractual or common law duties during LSL.
• Clarifying how LSL pay and super interact with Ordinary Time Earnings (OTE) and payroll practices.
• Answering broader questions around Secondary Employment and approvals, so everyone knows where they stand.

Getting it right up front helps employees enjoy their break and helps employers protect their business relationships and information.

Key Takeaways

• Working during Long Service Leave in Victoria isn’t automatically unlawful, but your contract, policies, award/EA and common law duties may restrict what you can do.
• Non‑competitive, unrelated work is lower risk; working for a competitor or using confidential information can breach your obligations, even while on leave.
• Always check your documents and, where required, seek written approval for any secondary work before you start.
• LSL pay is usually at your ordinary rate while on leave; super is often payable on LSL taken during employment because it counts toward OTE, but generally not on termination lump sums.
• Employers should set clear expectations through an Employment Contract and a Workplace Policy covering secondary employment, conflicts, and confidentiality.
• If you’re unsure, get tailored advice - especially where competition, restraints, business transfers or payroll complexities are involved.

If you’d like a consultation on managing work during Long Service Leave in Victoria - as an employer or an employee - you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.