Long service leave for casual employees
You likely know that long service leave is awarded to full-time and part-time employees who stay in their jobs for a certain number of years. But did you know that casual workers are entitled to long service leave too?
Long service leave is a period of paid time off work, something that casual workers don't typically receive. These workers usually get a casual loading—a higher hourly rate— to compensate for lack of benefits like sick leave and paid annual leave. However, when it comes to long service leave, the entitlements and calculations can differ.
In this article, we explore casual long service leave and eligibility criteria, how the leave accrues and how it should be calculated, so you know exactly what you’re entitled to.
What is long service leave?
Long service leave is an extended period of paid leave for employees who have stayed at the same company for a certain amount of time. You can see it as a reward for long-serving employees or as an incentive to stay at a company. It's a chance for employees to take a break and pursue personal projects, travel, family time or rest, in addition to regular annual holiday leave.
Long service leave is a government-mandated entitlement for full-time and part-time employees who stay with a single employer for a set period, between seven and 10 years. The amount of leave ranges from two months to more than three months, which can be taken all at once or broken into shorter periods. Some employers allows you to take annual leave or unpaid leave immediately before or after long service leave, to take an even longer break, like six months or even a year, off work.
Who is eligible for long service leave?
Wondering whether or not you’re eligible for long service leave? While full-time and part-time employees typically have straightforward criteria based on years of service, casual employees have more factors to consider.
Eligibility for long service leave depends on your location, as different states and territories have their own regulations. These rules determine whether or not you’re eligible for the leave, and also the rate of the accrual and conditions under which the leave can be taken. For instance, in NSW, the Long Service Leave Act 1955 has provisions that include casual workers under certain conditions.
Resources like the Fair Work Ombudsman and state-specific government websites provide updates and guidance on how to apply these rules in practical scenarios, so you can research what you’re entitled to.
Do casual employees get long service leave?
Do you get long service leave as a casual? Casual employees can qualify for long service leave, although their eligibility and the calculation of their leave accrual is different compared to full-time or part-time employees.
The concept of “continuous service” plays an important role in determining eligibility for long-service leave. Common qualifying criteria include:
- Minimum service period: most regions require a minimum period of service to qualify for long service leave, which typically ranges from seven to 10 years of continuous employment.
- Breaks in service: some breaks in service are allowed, for example, seasonal workers who work regularly every season may still be eligible despite breaks between seasons.
Casual employees accrue long service leave on a prorated basis, calculated according to the actual hours worked.
If you are unsure about your eligibility for long service leave as a casual employee, consider the following steps:
- Review employment records: look at your employment history and hours worked to assess continuity and years of total service.
- Consult local legislation: since regulations can vary by region, checking the specific long service leave laws in your state or territory is essential.
- Seek advice: if the eligibility criteria are unclear or if your situation involves complex employment patterns, consult the long service leave agency relevant to you.
Calculating long service leave for casuals
Working out how to calculate long service leave for casual employees can be complex, since casual employee long service leave has to take into account irregular hours and varying patterns of work typical for casual employment.
Understanding pro-rata accrual
For casual employees, long service leave accrual is worked out on a pro-rata basis. For example, if full-time employment involves working 38 hours per week, and a casual employee has worked an average of 19 hours per week, they would be considered to have worked half the time of a full-time employee. When the time comes to calculate long service leave, the casual employee’s entitlement would be half of what a full-time employee would accrue over the same period.
Formula for calculating pro-rata long service leave
Pro-rata leave = (casual hours worked per week ÷ full-time hours per week) × full leave entitlement
For instance, if a full-time employee earns 13 weeks of leave after 10 years and a casual has worked half the full-time hours over those 10 years:
Pro-rata leave = (19 ÷ 38) × 13 weeks = 6.5 weeks
Keeping track of service periods
As a casual employee, it's important for you to accurately maintain records of employment history and hours worked if you want to calculate entitlements like long service leave.
Tips for maintaining records
- Payslips and employment contracts: always keep copies of all payslips and employment contracts. Payslips show the number of hours worked during each pay period, which is essential for calculating your total hours worked over time. Employment contracts, on the other hand, can include important details about your employment terms that might affect your long service leave entitlement.
- Log sheets or digital tracking: consider keeping a personal log sheet or using a digital tracking app where you can record your daily or weekly hours. This can serve as a supplementary record to help resolve any discrepancies that might occur with employer records.
- Regular updates: make it a habit to regularly update your employment records, ideally after each pay period. This will simplify the process of calculating your long service leave when the time comes.
Handling multiple casual employers
Casual employees often work for multiple employers, which can complicate the calculation of continuous service for long service leave. Here’s how to handle such situations.
- Understand the law: first, familiarise yourself with the local long service leave laws. Some regions allow service periods across multiple employers if the work is within the same industry or sector.
- Consolidate records: keep a consolidated record of all employment periods, regardless of the employer.
- Communicate with employers: when approaching the eligibility for long service leave, communicate with your current or past employers to gather official employment records.
Examples of how to calculate long service leave
Example 1: Standard Calculation
- Casual employee name: Jane
- Industry: retail
- Hours worked: averages 20 hours per week
- Employment duration: 10 years
- Full-time equivalent: 38 hours per week
- Standard full-time entitlement: 13 weeks of leave after
10 years
Pro-Rata Factor = Jane’s average weekly hours ÷ full-time weekly hours
= 20/38
= 0.526
Jane’s long service leave = 0.526 × 13 weeks = 6.838 weeks
Jane is entitled to approximately 6.84 weeks of long service leave after 10 years of service as a casual employee.
Example 2: Multiple casual employments
First, it’s important to check local legislation allows for service periods across different employers within the same or related industries. Assuming it does:
- Casual employee name: Mike
- Industries: hospitality and retail
- Total hours worked: averages 25 hours per week combined
- Employment duration: 7 years in hospitality, 5 years in
retail (overlapping 3 years) - Full-time equivalent: 38 hours per week
- Standard full-time entitlement: 10 weeks of leave after
10 years
Combined Service Duration = 7+5−3 = 9 years (subtracting the overlap)
Pro-rata factor = Mike’s Combined Average Weekly Hours ÷ Full-Time Weekly Hours
= 25/38
= 0.658
Mike’s Long Service Leave = 0.658 × 9 weeks = 5.922 weeks
Mike is entitled to approximately 5.92 weeks of long service leave after working a total of 9 years across different casual employment industries.
How to take long service leave as a casual worker
Here’s how casual workers can go about requesting and taking their casual long service leave.
- Notice period required: typically, casual employees must provide their employer with notice before taking casual employees long service leave. The required notice period can vary, but it is often between four to eight weeks. This notice allows employers to manage staffing needs during the absence.
- Formal request: the request should be made in writing, stating the start and end dates of the proposed leave. Keeping this communication formal helps maintain clear records and avoid misunderstandings.
Long service leave payments for casual employees are calculated on a prorated basis, depending on the accrued entitlements:
- Average of recent earnings: payments are often based on the average earnings of the casual employee over the last 12 months.
- Pro-rata basis: for example, if a casual has worked half the hours of a full-time employee, they would receive half the pay that a full-time employee would receive during their long service leave.
The process of determining eligibility and calculating long service leave is more complex for casual employees, but it's worth figuring out your entitlements. You might be eligible for portable long service leave, and receive paid leave even if you've worked for different employers. By following the steps outlined above and researching your local government's guidelines you can work out how much long service leave you're owed.
FAQs
Are casual employees entitled to long service leave?
Yes, casual employees are entitled to long service leave under certain conditions. Eligibility depends on the nature of their work and the long service leave laws of their state or territory.
How do you calculate LSL for casuals?
Long service leave for casual employees is calculated on a pro-rata basis, taking into account the number of hours worked relative to full-time hours. This involves comparing the casual hours worked to a full-time schedule and adjusting the entitlement.
What rights do my long-term casual employees have?
Long-term casual employees have rights to various employment benefits, including long service leave, provided their service is continuous and meets the eligibility criteria set by regional employment laws.
Does casual employment count towards continuous service?
Yes, casual employment can count towards continuous service for long service leave purposes, as long as the employment is regular, with expectation of ongoing work.
How is LSL calculated for casuals in NSW?
In New South Wales, LSL for casuals is calculated based on their average weekly hours worked during the employment period. The calculation considers the total hours worked and divides it by the standard full-time hours to determine the pro-rata entitlement.
How is LSL calculated for casuals in Victoria?
In Victoria, the calculation of LSL for casuals follows a pro-rata system based on the average hours worked compared to full-time hours.
Can an employer refuse long service leave?
An employer cannot refuse an entitlement to long service leave once an employee is eligible. However, they can negotiate the timing of the leave.
What is the minimum hours for a casual employee?
There is no set minimum hours for a casual employee as their work is typically based on demand. However, entitlements such as long service leave are calculated based on the hours they do work.
Do casuals accrue long service leave?
Yes, casuals do accrue long service leave, provided their employment is continuous and meets the eligibility criteria set by the relevant state or territory legislation.
Is casual loading paid on long service leave?
No, casual loading is not paid on long service leave. When taking long service leave, casuals are paid at their base rate of pay, without the casual loading they receive for ordinary hours worked.
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