Understanding Pro-Rata LSL Entitlements

What is Pro-Rata LSL?

Pro-rata Long Service Leave refers to a proportional payment of LSL entitlements when an employee leaves before reaching full eligibility. Not all terminations qualify for pro-rata payments.

When Does Pro-Rata Apply?

Pro-rata entitlements typically apply in these circumstances:

Qualifying Termination Types

Non-Qualifying Terminations

State-Specific Rules

Each state has different thresholds for when pro-rata becomes available:

**Victoria:** After 7 years for most termination types

**NSW:** After 5 years for redundancy, illness, domestic reasons, or employer-initiated termination

**Queensland:** Varies by award/agreement

**Other states:** Generally after 7 years

How to Calculate Pro-Rata

The calculation is relatively straightforward once you know the accrual rate:

Pro-rata entitlement = Years of service × Accrual rate

For example, in Victoria after 6 years:

Important Considerations