Long Service Leave

After seven years of continuous service, employees may may be entitled to pro rata long service leave payments if they leave employment. These are set out in the legislation but are often subject to dispute in the Tasmanian Industrial Commission.

It should be noted that long service leave applies to all categories of employment including part-time, casual, pieceworkers and commission-based employees.

If an employee leaves after seven years but before 10 years, they may be entitled to pro rata long service payment if:

• their employment is terminated by the employer for any reason other than serious and willful misconduct;

• they resign because of serious illness that means they can no longer perform the duties of the job;

• they resign because of incapacity, domestic or other pressing necessity;

• they are over the retirement age (60 years old for females, 65 years old for males); or

• they die during their period of employment.

The third category is often the most difficult to interpret and has been subject to a lot of litigation. Basically, this means that the employee has no choice other than to resign because of the personal, family, or domestic necessity. Examples include looking after a sick family member, or the spouse or partner is required to move interstate to a location that makes commuting impracticable.

If you have an employee leaving and you are unsure as to whether they are entitled to long service leave contact Andrew.