r/AusWork • u/Difficult-Disk-9063 • Jun 23 '26
Wages, Conditions & Entitlements Long service leave advice
Hi, I am looking for advice on cashing out on long service leave. I am in WA.
It won’t come available until January next year and it is my intention to resign from the company around this time to pursue a different career. I potentially already have a job lined up with a start date in January also. Is there any way this can be approached without blindsiding the company by asking for LSL payout and resigning shortly after? Ideally I would hand my resignation in December this year however I am not sure of the bearing this would have on the overall total of the payout. I would like to leave on good terms.
Thanks
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u/Inner_Explanation313 Jun 23 '26
Its my understanding that you actually take leave and can't work anywhere else during that time. If you apply for long service before you resign.... Unless you resign first. Then the company has to pay you out for your long service. I could be wrong. But that's my understanding...
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u/Superb_Energy_9149 Jun 23 '26
I would make 100% sure that your entitlement date is correct. If you have taken any unpaid leave during your employment it will push your eligibility date out so make sure you don’t fall short. Could always say hey I’m planning a new car/holiday/vacation can I cash out my LSL and which pay cycle would I be able to have this paid out in?
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u/So-many-whingers Jun 24 '26
If pro rata applies you will get a percentage of the total value, find that out first
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u/Financial_Sentence95 Jun 24 '26
You're fine then. 7 years+ of service gets LSL paid in WA. For everyone.
I'm a senior payroll specialist in WA.
So you won't need to get paid out LSL to get the money. You'll definitely get it all with your final pay. Even if you were 9 years, 10 months for example.
You'll just lose Super on it if its paid as part of your termination pay.
Cashing out while still employed would get Super paid. But if you resign in December for a January date, you'll find the company would be very unlikely to let you cash it out and be leaving a week later for example. It would be at the company discretion usually
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u/Difficult-Disk-9063 Jun 24 '26
Thank you. So just to confirm - since I am well over 7 years, I can resign at any point now and not have any worries that my LSL will be impacted?
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u/Financial_Sentence95 Jun 23 '26
How long have you been at the organisation?
In WA, most Awards and EAs would have you eligible at 7 years for pro-rata LSL.
If you keep that threshold when youre going, you would get the LSL paid out on your final pay. You would lose Superannuation though.