Set up an employee’s leave

You can assign default leave types to your employees based on National Employment Standards (NES), or create custom leave types with personalised accrual calculations. You’ll need to add opening balances for leave if you’ve paid an employee outside Xero this financial year.

Before you start

From the Taxes tab, you would have selected the employment basis for your employee. This affects what default leave types and accrual calculations are available to the employee.

  • Full-time and part-time employees - are provided default leave types and accrual calculations based on the minimum leave entitlements outlined in the NES (FairWork Ombudsman website). You can also create and assign a custom leave type.
  • Casual, labour hire and superannuation income stream employees - have no default leave types or accruals calculations. You’ll need to create and assign a custom leave type if you want these employees to request paid leave and accumulate leave.

Set up leave defaults for an employee

This is for full-time and part-time employees only.

  1. In the Payroll menu, select Employees.
  2. Click the employee's name to open their details.
  3. Click the Leave tab.
  4. Click Assign Leave Types.

    Leave Balances show as 0. Accruals start once the employee is included in a posted pay run.

  5. (Optional) If the employee has accrued any leave outside of Xero this financial year, enter these now:
    1. Under Leave Balances, click the number of leave hours in blue for the leave type.

      Leave balances link

    2. Scroll down to Opening Balance, and enter the leave already accrued.
  6. Click Save.
  7. Repeat for each leave type that applies, for example Sick Leave, Long Service Leave and Annual Leave.