Is an employee of less than 7 years entitled to pro rata long service leave?
We have a staff member who has been on short-term contracts that have been extended with ongoing project funding, but is coming to an end at the end of this month.
She has been continually employed since 2015. We offer above-award long service leave, with it being 12 weeks after 7 years, so pro rata after 5 years.
We have been accruing hours at a rate to cover the above conditions.
We just wish to ensure that the staff member is entitled to the pro rata payout due to the fact that there is to be no further extension of her contract due to projects finishing.
Do we pay out the full amount of hours accrued or is there a particular formula they we need to apply?
By way of general guidance, as there is less than 7 years continuous employment, there is not yet an entitlement to long service leave. That means the employer is free to make a termination payment that is akin to a pro rata LSL payment – but it won’t actually be a LSL payment.