Updated Long Service Leave guidance now available
NSW Industrial Relations is launching updated Long Service Leave (LSL) guidance. From 1 March 2026, the guidance is in effect and is designed to support clearer and more consistent application of the Long Service Leave Act 1955.
The Act itself has not changed. However, as the regulator, NSW Industrial Relations has updated its guidance on how certain provisions of the Act should be interpreted and applied. This updated guidance applies from 1 March 2026.
Updated Long Service Leave Guidance Webinar
If you are responsible for managing or calculating long service leave or would like to better understand how the updated guidance applies in practice, you are encouraged to watch the webinar.
The session will step through what has changed and address common questions.
Please watch the webinar here.
What’s changed?
The updated guidance includes a step-by-step guide (PDF 584.25KB)to calculating long service leave accruals and payments. It also clarifies how to:
- assess continuous service
- assess absences for casual workers
- determine entitlements for workers on fixed term contracts
- calculate ordinary hours of work for workers with fluctuating hours
- decide when to use ordinary remuneration and when to use average weekly wage
- treat bonuses for long service leave purposes
- manage the taking of a single day of long service leave, including payment and accrual impacts
- treat accruals after 15 years of service
These topics will be discussed during the webinar, with practical explanations to support real world application.
Why NSW Industrial Relations has updated its interpretation of the Act
1. The Long Service Leave Act is complex
The Long Service Leave Act 1955 is longstanding legislation. While some provisions have been considered by the courts, many have not been subject to detailed judicial interpretation. This has created uncertainty about how certain aspects of the Act should be applied.
The updated guidance sets out NSW Industrial Relations’ preferred interpretation and application of the Act, based on a holistic and considered analysis informed by:
- relevant State and Federal case law
- parliamentary materials, including NSW Parliamentary debates on the Act
The guidance should not be taken as determinative of how the law will be applied in every case. Its purpose is to make NSW Industrial Relations’ compliance approach to long service leave clearer, fairer and more consistent for both workers and employers.
2. Preventing unfair or inconsistent outcomes
The updated guidance aims to ensure the Act is interpreted and applied in ways that reflect a worker’s actual working and earning patterns during their employment.
This helps ensure workers receive long service leave entitlements that fairly reflect the service they have provided, and that employers pay entitlements they could reasonably expect to pay.
3. Supporting compliance and reducing disputes
By clearly explaining how NSW Industrial Relations will interpret and apply the Act:
- employers can calculate entitlements more accurately and consistently
- workers can better understand their entitlements
- the risk of underpayments, back payments, disputes and litigation is reduced
Regulatory approach
Impact on past cases
A past case includes situations where:
- a worker made a complaint to NSW Industrial Relations that has been resolved, or
- an employer was the subject of a complaint that resulted in prosecution and court proceedings, or
- an employer was subject to a proactive audit that has been finalised.
Past cases are not affected by the updated interpretation. The updated guidance will not be applied retrospectively and does not affect the validity of previous complaint handling, resolutions or prosecutions.
Impact on current cases
A current case includes:
- complaints currently being managed by NSW Industrial Relations, or
- active and ongoing proactive audits of employers.
If you are involved in a current case, it may be impacted by the updated interpretation. The NSW Industrial Relations inspector assigned to your case will contact you to explain any impacts.
Updated tools and support
NSW Industrial Relations has also updated a range of supporting resources, including:
- Frequently Asked Questions
- an eLearning module
- a short Long Service Leave factsheet (PDF 134.08KB)
- the Long Service Leave calculator
Want to discuss this further?
If your organisation would like to discuss the updated Long Service Leave guidance or its practical implications, you can arrange a discussion with NSW Industrial Relations by contacting the Stakeholder Engagement Manager at: toni.minovski@industrialrelations.nsw.gov.au