Long service leave when a business is sold in Victoria
Victoria's Act carries an employee's service over to a new owner when employment continues after a change of ownership, and the new owner must give leave that accrued before the change, even where the business changed hands before the Act began. The rule also reaches a new employer who takes over the assets an employee works with, and an employee dismissed by the old owner keeps their service if the new owner hires them within the weeks shown in the table.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
The rules in Victoria
| What it is | Value | When it applies | Where it is set |
|---|---|---|---|
| Service with the old owner counts with the new owner when employment continues | Yes | As published on 12 December 2025 | s 11(3)(a): change of ownership of a business |
| The new owner must give leave that accrued before the change of ownership | Yes | As published on 12 December 2025 | s 11(3)(b): new owner must not refuse long service leave |
| The rule applies even if the business changed hands before the Act began | Yes | As published on 12 December 2025 | s 11(4): change of ownership before or after commencement |
| Weeks after dismissal by the old owner within which hire by the new owner keeps service | 12 weeks | As published on 12 December 2025 | s 11(5): dismissal and re-employment by a new owner |
| Service continues with a new employer who takes over the assets the employee works with | Yes | As published on 12 December 2025 | s 11(6): transfer of business assets |
| A break caused by a transfer of the assets the employee works with counts as service | Yes | As published on 12 December 2025 | s 13(1)(e)(ii): absence from a transfer of assets |
| Sale of business documents can exclude an employee's long service leave | No | As published on 12 December 2025 | FAQ: What happens when a business changes hands? |
Each rule is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
What it means for your books
- Taking on the employee records from the old owner at the change, with each continuing employee's start date, gives the new owner the service history that the leave accrued before the change rests on.
- Where the old owner dismisses employees and the new owner hires them, the dates of each, kept side by side, show whether the gap falls within the weeks in the table.
- When a new employer takes over the assets an employee works with, the date the assets moved and the dates the employee stopped and started work show the break the transfer caused, which the Act counts as service.
- Sale documents cannot exclude an employee's long service leave in Victoria, so records from earlier owners stay relevant after the sale. Questions about a particular sale go to your accountant or Workforce Inspectorate Victoria.
General information
Sources
- Long Service Leave Act 2018 (Vic), Authorised Version No. 006
Office of the Chief Parliamentary Counsel Victoria. Authorised Version No. 006, as at 12 December 2025, released 12 December 2025. Checked 15 October 2026.
© State of Victoria (Government Printer) Licence: Victorian Legislation copyright notice: copyright, State of Victoria.
- Long service leave
Workforce Inspectorate Victoria. Page updated 12 December 2025, released 12 December 2025. Checked 15 October 2026.
© State Government of Victoria, licensed under CC BY 4.0 Licence: CC BY 4.0.
Bookkeeping for employers
Keep your books ready for the questions employers get asked
We look after day-to-day bookkeeping for businesses across Australia, so your records are up to date when you need them.