No - there is no accrual of any leave type when on LWOP. Continuity of service is not broken but you have to factor the LWOP period for entitlement eg an employee on LWOP for 12 months P/L would have to be employed by the company for 11 yrs before LSL entitlement kicks in. FYI, full information on LSL in Victoria may be found on the Business Victoria website.
Tiger