Australia's New South Wales government updates long service guidance

At a glance

• On 1 March 2026, the New South Wales (NSW) government introduced guidance on the application of long service leave (LSL) under the Long Service Leave Act 1955 (NSW) (Act).
• The guidance acknowledges the complexity of the Act and is intended to support a clearer and more consistent application of its provisions by both employers and workers. 

On 1 March 2026, the NSW government released updated guidance on the application of the Act. The guidance is intended to clarify the compliance approach of NSW Industrial Relations, with a focus on achieving greater fairness and consistency for both employers and workers.

The updated guidance is designed to assist NSW employers (and employers with employees located in NSW) by setting out NSW Industrial Relations’ preferred interpretation of the Act, informed by relevant State and Federal case law and parliamentary materials.

The guidance provides clarification on various aspects of the Act, including how to:

• Calculate long service leave accruals and payments.
• 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.

A copy of the updated guidance is available here. NSW Industrial Relations has also released an updated Long Service Leave Guidance Webinar, which steps through the changes and addresses FAQs. The webinar is available here.

The guidance is intended as a general guide only and does not constitute legal advice. Employers are encouraged to reach out to our team for advice on specific circumstances.