Move employee from casual to full-time or vice versa

Change your employee’s employment status from casual to full-time or vice versa, including adjustments to leave accruals, pay template and taxes.

Move employee from casual to full-time

  1. Under Payroll, select Employees.
  2. Click the name of the employee to open their details.
  3. Click the Taxes tab.
  4. Change the Employment Basis from Casual employment to Full-time employment.
  5. Click Save Only.
  6. Click the Pay Template tab and update the number of standard hours per pay period in the Earnings Rate field. For example, if you pay the employee weekly with a 38 hour base, enter 38.
  7. Click Save.
  8. Click the Leave tab, and select the relevant Leave type, such as Annual Leave.

    Select the leave amount to update the leave details.

  9. Update the employee’s leave details to one of the following options:
    • Fixed Amount Each Period: to set a fixed number of hours that accrue each pay period.
    • Manually Recorded Rate: to enter the number of hours to accrue each pay period.
    • No Calculation Required: to ensure no leave is accrued. You can still add manual accruals in the pay run if you need.
    • Based on Ordinary Earnings: to automatically calculate the number of hours per pay period depending on the number of ordinary hours worked by the employee.

    We recommend that you select Based on Ordinary Earnings for all of your employees, including part timers. Enter the number of hours a full-time employee accrues annually and the number of hours a full-time employee works in a pay period.

    Xero’s payroll will automatically calculate your employee’s leave accruals based on the number of ordinary hours worked by your employees and the number of pro-rata hours.

  10. Click Save and repeat for each leave type.
  11. (Optional) If your employee has changed their employment basis part way through a pay period, manually adjust the hours payable in the first pay run you process by editing their payslip prior to completing your pay run.

  12. If you would like to record this change in the employee's file, include it in the Notes tab.

Move employee from full-time to casual

  1. Under Payroll, select Employees.
  2. Click the name of the employee to open their details.
  3. Click the Taxes tab.
  4. Change the Employment Basis from Full-time employment to Casual employment.
  5. Click Save Only.
  6. Click the Pay Template tab and update the number of standard hours per pay period in the Earnings Rate field. If the hours vary you can simply leave the hours as 0 and enter these in each pay run to avoid over payment.
  7. Click Save.
  8. Pay out any unused leave accrued under the employee’s full-time status:
    1. Add a leave request for the leave hours that they are owed, in each of their leave categories.
    2. Process a pay run, or an unscheduled pay run, that includes the leave request, as well as any other ordinary leave hours owed to that employee.
  9. Select Leave tab, and click into the Leave Type.

    Select the leave amount to update the leave details.

  10. Update Leave Calculation Method to No Calculation Required to prevent further full-time leave accruing on future pay runs.
  11. Click Save and repeat for each leave type.
  12. (Optional) If your employee has changed their employment basis part way through a pay period, manually adjust the hours payable in the first pay run you process by editing their payslip prior to completing your pay run.

  13. If you would like to record this change in the employee's file, include it in the Notes tab.