Your ultimate guide to long service leave

Contrary to popular belief, the grass is not always greener. One of the benefits of staying at a job for a while is Long Service Leave (LSL).

But are British companies making the most of this?

What is long service leave?

LSL is extra paid leave, on top of the annual holiday, to which you are entitled after a certain period with the same employer. In Great Britain there is no legal right to long service leave. This is at the company’s discretion, and some may prefer to offer ‘anniversary rewards’ instead, such as a cash bonus or a gift.

How do you get it, and when?

There is no official definition of what counts as ‘long employment’, but typically this is around 10 to 15 years. But with the trend towards shorter periods with one employer, some companies are lowering the thresholds.

For example the University of Oxford has a tapering system, where employees receive 1 extra holiday day per year after 5 years of service, 2 extra days after 7 years and 5 days after 20 years. Some companies go even further and offer accrued LSL after just two years with the company.

Taking long-term service leave

Some people might use it long-term leave to bring forward their retirement date or to reassure themselves that retirement is definitely what they want. Others may take it as soon as possible, perhaps for a big trip. This is better for the employer as wages tend to rise over time, which means the cost of leave also rises.

Is long service leave a good thing?

Some argue that LSL is age-restricted and discriminates against newer hires. Or that it isn’t fair and creates division and resentment at work. But this is about your ‘company age’, not your actual age. LSL is accessible to everyone; all they have to do is stay. It is based on quantity and not quality. In theory, it is not that different from the way annual leave is accrued.

We don’t see how rewarding staff loyalty can be a bad thing. And loyal staff are becoming increasingly difficult to find, especially after the Covid-19 crisis ‘the great resignation’. Offering additional paid time off in recognition of long-term effort and commitment is a great way to show that you value and appreciate your staff.

The benefits of long-term employment

The biggest barrier to LSL is its perceived relevance in the modern working landscape, where it is common to change roles and/or employers every few years. This is especially true for the younger generations.

But for many people, work is just a means to earn a living. Job hopping and climbing the ladder are just not high on their agenda. They want to show up, do a good job, get paid and move on with their lives. These are the kind of people LSL will appeal to. They are also great employees: they are loyal and committed; they will show up and work hard; they see a future with you, so they can make meaningful contributions to long-term goals. These are the people you want by your side for the long term as you build a sustainable and successful business

Long-term employment still offers enormous benefits. Building a career by constantly changing jobs is a bit like a game of snakes and ladders. Lateral moves don’t always pay off. You could end up in a terrible culture, with a nightmare boss, or miss the opportunity to build knowledge and experience.

Novelty does not have to be found elsewhere. In addition to LSL, if you can keep your staff engaged and interested in their work, for example with a great professional development plan that demonstrates a commitment to long-term wellbeing and growth, you can prevent your eyes from wandering.

Key learning points

While by no means a one-size-fits-all solution to high employee turnover, long service leave can serve as an enticing reward that may entice more stability-oriented employees to stay with you for the long term.

By keeping one eye on the now, building a great culture and prioritizing professional development, LSL can ensure employees look further into the future – and see you in it.

Author – Phil Norton

Phil is co-founder of Departure dates, the holiday planner for employees. He loves solving problems and making life easier for small businesses. If you book a Leave Dates demo, he will give you a warm welcome and show you everything you need to know.