Long Service Leave Notice Periods: Employer Rules in Australia

Long service leave (LSL) is one of those entitlements that can quietly sit in the background for years - until it suddenly becomes urgent.

Maybe a long-standing team member emails you saying they want to take 8–12 weeks off. Maybe you’re selling the business and you need to work out who’s owed what. Or maybe you’re dealing with a resignation and someone asks whether they can “use up” their long service leave during their notice period.

In all of these situations, the notice requirements for long service leave become a practical (and legal) issue for your business. If you handle it well, you can keep operations running smoothly and reduce disputes. If you get it wrong, you could be exposed to underpayment claims, compliance headaches, or a breakdown in your employment relationship.

Below, we’ll walk you through how long service leave notice periods generally work in Australia, what can differ across states and territories (and across different schemes), and how you can set clear, compliant processes in your workplace. This article is general information only - long service leave rules can vary materially depending on the applicable legislation and any industrial instrument (like an award, enterprise agreement, or specific industry scheme).

What Is A Long Service Leave Notice Period (And Why Does It Matter)?

A long service leave notice period is the amount of notice an employee must give you before they take a period of long service leave.

Unlike annual leave (which is governed nationally under the Fair Work Act and modern awards), long service leave is usually governed by state and territory laws (and sometimes by specific schemes or industrial instruments). That means notice rules can vary depending on which long service leave system applies to the employee.

For small businesses, the notice period matters because it affects:

• Rostering and staffing: LSL is often taken in large blocks (for example, 6–12 weeks), which can leave a major gap.
• Cash flow planning: you may need to fund paid leave while also paying replacement staff.
• Compliance and record-keeping: if there’s disagreement later about whether proper notice was given, you’ll want clear documentation.
• Employee relations: disputes about notice periods can escalate quickly, especially where an employee feels entitled to take leave “whenever they like”.

It’s also important to remember that long service leave is not just a “nice to have”. It’s a legal entitlement in Australia, and your obligations can continue even if your business changes hands (depending on the structure of the sale and the relevant long service leave rules).

Which Laws Set The Long Service Leave Notice Period In Australia?

There is no single national rule for long service leave notice periods. In many cases, the relevant rules are driven by the state or territory where the employee performs their work - but coverage isn’t always as simple as “work location”. Depending on the circumstances, the applicable long service leave system may also be affected by the employer type, the employee’s employment arrangements, and any applicable industrial instrument or industry-based scheme.

Each state and territory has its own long service leave legislation (and associated regulator guidance). These laws usually cover:

• when long service leave starts accruing and when it becomes payable
• how much leave is owed (and whether there is pro-rata long service leave)
• how the leave can be taken (in one block vs multiple blocks)
• what notice must be given
• when an employer can refuse, postpone, or negotiate timing

In practice, many long service leave laws require written notice before leave starts - but the required timeframe can differ substantially between jurisdictions, and it may also be varied by agreement in some cases. Because the details can vary, your safest approach is to:

• confirm which long service leave legislation or scheme applies to the employee
• check whether any specific instrument affects how and when leave is taken (for example, an enterprise agreement)
• set an internal policy that reflects (and does not undercut) the legal minimums

If you employ across multiple states (or have remote staff), it’s worth having consistent processes and templates, but you still need to ensure the rule you apply is legally correct for that person’s situation.

A Quick Note On The Fair Work Act

The Fair Work Act 2009 (Cth) sets the National Employment Standards (NES), including annual leave and personal leave. However, long service leave is generally preserved as an existing entitlement and is primarily dealt with under state and territory laws (and, in some cases, separate schemes or instruments).

So if you’re searching for an answer to “long service leave notice period” and only reading Fair Work resources, you may not get the full picture.

What Notice Should You Require For Long Service Leave Requests?

From an employer’s perspective, the ideal notice period for long service leave is one that is:

• compliant with the relevant law or instrument
• predictable for planning and rostering
• fair to the employee (especially where long service leave is often planned around significant life events)

Many businesses set a default expectation that long service leave requests should be submitted in writing well in advance (for example, around a month or more), unless a shorter timeframe is agreed. The key point is that your internal timeframe needs to align with (and not undermine) the minimum notice rules that apply to the employee.

However, there are two important cautions:

• You can’t “contract out” of statutory rights. If the law says the employee can take leave with a certain notice period (or on certain terms), your policy can’t take away that entitlement.
• Your policy still needs flexibility. There will be situations where you and the employee agree on a different arrangement (for example, taking leave in smaller blocks).

Written Requests Are Your Friend

Even if your workplace is informal, long service leave can involve large amounts of paid time off and significant business disruption. Encourage employees to request LSL in writing and confirm approvals in writing too.

This doesn’t need to be complicated - an email trail is often sufficient - but clarity now can prevent confusion later.

Make Sure Your Employment Documents Support Your Process

Your employment documents won’t override legislation, but they can set expectations and reduce friction. For example, your Employment Contract can cross-reference your leave request process and direct employees to comply with lawful policies.

Can You Refuse Or Postpone Long Service Leave If The Notice Is Too Short?

This is where many small businesses get stuck: you want to do the right thing by your employee, but you also need to keep the business running.

Whether you can refuse or postpone long service leave (and on what grounds) will depend on the relevant state/territory legislation or scheme, and the specific facts. In many regimes, the timing of long service leave is intended to be arranged by agreement between employer and employee. Some laws also allow an employer to require the leave to be taken at a particular time, or to refuse/postpone in limited circumstances - but those powers are not the same everywhere, and you generally can’t use them in a way that effectively prevents an employee from taking their entitlement.

Even where the law allows postponement, you generally need to act reasonably and communicate clearly. A blanket “no” is risky if it effectively prevents the employee from accessing their entitlement.

A Practical Way To Handle Short-Notice Requests

If an employee requests long service leave on short notice, consider responding with a structured approach:

• acknowledge the request promptly
• ask whether the dates are flexible
• explain the operational impact (for example, peak season, minimum staffing levels)
• propose alternatives (different start date, split leave, partial leave now and partial later)
• confirm whatever is agreed in writing

If you anticipate disputes, it may be worth getting advice early - especially if the employee has raised concerns about entitlements or you suspect the request is linked to a broader workplace issue.

How Does Long Service Leave Work During Resignation And Notice Periods?

Resignations create a common (and sometimes tense) long service leave scenario: the employee resigns, then asks to take their long service leave during their notice period.

There are a few moving parts here:

• Employment notice period: how much notice they must give to resign (often set by the employment contract, award, or NES minimums).
• Long service leave notice period: how much notice they must give to take LSL (set by the applicable state/territory law, scheme, or agreement).
• Operational needs: whether it’s workable for the business for them to be on leave during that notice period.

Can An Employee “Run Down” Long Service Leave While Serving Notice?

Sometimes it can be agreed - particularly where both sides want a clean and amicable exit.

But it isn’t always something an employee can insist on unilaterally. You’ll need to check the relevant long service leave rules and whether there are requirements about notice and how the timing is set (for example, whether it must be agreed, or whether the employee can nominate dates after giving the required notice).

Also, be careful not to confuse this with payment in lieu of notice, which is a separate concept where you pay out the notice period instead of having the employee work it.

Do You Have To Pay Out Long Service Leave On Termination?

This depends on the applicable state/territory scheme (or other instrument) and the employee’s length of service, as well as the reason employment ended.

In many cases, long service leave is payable on termination once the employee has reached a certain service threshold (and pro-rata entitlements may apply after a certain point). Because the thresholds and rules vary, it’s a good idea to check carefully before processing final pay.

If you’re calculating an employee’s final pay, you should also make sure you’re handling other entitlements correctly (such as annual leave). Getting a process in place for final pay can save you a lot of time and reduce the risk of disputes.

How To Set A Clear Long Service Leave Process In Your Business

Even though the statutory rules vary, you can still build a consistent, practical process across your business. The goal is to make leave requests predictable and well-documented, without creating rules that unlawfully restrict entitlements.

1. Confirm Which State/Territory Law Applies

Start with the basics: which long service leave scheme applies to the employee? In many cases this aligns with the state or territory where they work, but it’s worth checking if there are any special arrangements (for example, an enterprise agreement or an industry scheme). For remote teams, it’s not always obvious, so make sure your HR records clearly state the employee’s work location and the applicable employment setup.

2. Create A Simple Leave Request Policy (That Covers LSL)

Your policy should cover:

• how leave requests must be made (for example, email or HR system)
• the notice you require for long service leave requests (while acknowledging this is subject to the applicable law and agreement)
• how you assess and respond to requests
• how disputes are escalated internally

This kind of policy is often included as part of a broader workplace policy set (for example, inside a staff handbook). If you’re updating your HR documentation, it may also be a good time to check you have the right foundations around rosters and changes to shifts, particularly if you operate in a rostered environment. For example, a clear process around employee rostering can make extended leave periods much easier to manage.

3. Keep Approvals And Agreements In Writing

Because long service leave blocks are often lengthy, you should confirm in writing:

• approved start and end dates
• whether the leave is taken at full pay or half pay (if available and agreed)
• whether the leave will be taken in one block or split into multiple periods
• any operational arrangements (handover, temporary replacement, contact expectations)

If you ever need to show you acted reasonably (or need to correct misunderstandings), written records are invaluable.

4. Plan For Cover Early (And Use The Right Agreements)

If you bring in a replacement worker while someone is on long service leave, make sure you document the relationship properly. The right documentation will depend on whether they’re an employee or a contractor, but the key is clarity about duties, pay, and the temporary nature of the role.

It’s also a good opportunity to ensure your broader employment set-up is up to date, particularly if your team has grown quickly or you’ve been relying on informal arrangements.

5. Be Consistent (But Stay Flexible Where You Can)

Consistency matters because it reduces the risk of claims that you treated employees unfairly or applied entitlements inconsistently.

At the same time, long service leave often comes up around major life events. Where your business can accommodate flexibility (without creating operational risk), it can go a long way in maintaining trust with experienced staff.

Key Takeaways

• Long service leave notice requirements are generally set by state and territory legislation, but the applicable rules can also be affected by instruments or specific schemes - so the correct position depends on the employee’s circumstances.
• Long service leave often involves extended time off, so having clear written request and approval processes helps you manage staffing and reduce disputes.
• If an employee gives short notice, your ability to refuse or postpone long service leave depends on the applicable rules and whether you act reasonably (and within the limits of that scheme).
• Resignations can complicate timing - long service leave requests during notice periods need careful handling and clear written agreement where appropriate.
• Strong employment documentation and consistent HR processes make long service leave planning much easier, especially as your business grows.

If you’d like help setting up compliant leave processes, updating your workplace documents, or managing a tricky long service leave request, contact Sprintlaw on 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Official Sources to Check

Rules and regulator guidance can change. Check the current official material most relevant to this issue before relying on the article:

• Fair Work Ombudsman: Employment conditions
• Federal Register of Legislation: Fair Work Act 2009