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Monday, August 31, 2026

Labour hire company liable for withholding long service leave - Law Society Journal

An Industrial Relations Commission of NSW decision on 27 July 2026 has held labour hire company Allstaff Australia RJE Pty Ltd liable for failing to meet its obligations to casual workers on accrued long service leave.

The decision was a critical reminder that employers must heed their obligations to workers, casual and contract included, according to the:

  • Civil Procedure Act 2005 (NSW)
  • Fair Work Act 2009 (Cth)
  • Interpretation Act 1987 (NSW)
  • Long Service Leave Act 1995 (NSW)

Alexandra Shields, Partner at Norton Rose Fulbright, points out that NSW long service leave (LSL) entitlements – including coverage, qualifying thresholds, pro rata payment triggers, and “ordinary pay” averaging – are anchored in section 4 and the defined terms of the Long Service Leave Act 1955 (NSW) (Act). Relevant to labour hire, we must consider what constitutes “continuous service”, which is set out in section 4(11), and an employer’s obligations to pay accrued but unused long service leave on termination, as set out in section 4(5).

She says, “NSW case law confirms that casuals with requisite continuous service accrue LSL under the Act and that this cannot be contracted out of (contracting out is overridden by the Act).”

Importantly, record keeping and offence provisions (including potential liability for officers) support enforcement, highlighting the importance of robust LSL ledgers, especially when staff move between hosts or employers.

Shields says, “LSL under the Act should be...



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