Did You Know? The Hidden Risks in Long Service Leave

Long Service Leave (LSL) is often seen as a simple, standard entitlement but the reality is far more complex.

While most state and territory legislation specifies that overtime is not included, in some states or territories, what this actually means is that overtime rates are excluded, not the overtime hours themselves. Misinterpreting this subtle but crucial distinction can leave organisations exposed to compliance breaches, underpayments and unhappy employees.

In today’s workplace, recognising and rewarding long term loyalty isn’t just about providing leave it’s about ensuring accuracy, compliance and trust. The question is: how confident are you that your HR and payroll teams fully understand LSL?

Why It Matters

Failure to get LSL right can have costly consequences. With each state and territory applying its own rules, even seasoned HR professionals can be caught off guard. Employers who assume their payroll systems can handle the calculations automatically may be at the greatest risk because in most cases, manual calculation is required to achieve accuracy.

Key Compliance Pitfalls

The Australian Payroll Association’s specialist course on LSL highlights some common areas of misunderstanding, including:

• Payslip presentation: Why LSL balances should not be listed on employee payslips.
• Legislative differences: How LSL is calculated differently depending on the employee’s work location.
• System limitations: Why most payroll platforms cannot accurately compute LSL and why manual calculations remain essential.

Building Confidence Through Training

Australian Payroll Association training is designed to give HR and payroll professionals the clarity and confidence they need. Participants gain practical knowledge, clear examples and compliance-focused guidance, ensuring that their organisations are not just meeting legislative requirements but actively protecting themselves against risk.

Equip your team with the skills to manage one of Australia’s most misunderstood entitlements. Enrol in the APA Long Service Leave Masterclass today.