Set up payroll and leave for annual closedown

If your business closes down for a number of weeks each year, for example over Christmas, you will need to process annual leave for your employees even if they don’t have enough hours to cover the closedown period.

Before starting

  • An annual leave closedown can apply to all, or only some of your employees.
  • If you are managing the annual closedown ahead of time, set up your employees to take leave in advance.
  • If employees haven't worked long enough to have the paid annual leave they need, setup unpaid leave as a custom leave type with a leave balance of 0. Then you can submit leave requests for paid and unpaid leave to cover the closedown period.

Submit leave requests for your employees

  1. In the Payroll menu, select Leave.
  2. Click New Leave Request.
  3. Select the employee and enter all the details for their paid annual leave:
    • Type of Request = Annual Leave.
    • Description = Enter a name for the leave request. For example, Annual closedown, Christmas break, or Snow holiday.
    • Start Date and End Date.
  4. Click Approve.
  5. (Optional) To add the unpaid leave for employees who have worked less than a year, click New Leave Request.
    1. Select the employee and enter all the details for their unpaid leave:
      • Type of Request = Unpaid leave.
      • Description = Enter a name for the leave request. For example, Annual closedown, Christmas break, or Snow holiday.
      • Start Date and End Date.
    2. Click Approve.
  6. Repeat for each employee included in the annual closedown.

Xero will process leave in the pay runs that include the leave request dates. If you've added any unpaid leave, it will be recorded in the pay run.