Employee sick leave

Add or adjust employee sick leave entitlements. Manage and report on sick leave requests.

How it works

  • You can add sick leave entitlements when you set up an employee's leave.
  • The Schedule of accrual in an employee's sick leave settings determine how their leave accrues in Xero, for example Annually after 6 months. The sick leave entitlement will show once the employee appears in a Scheduled pay run that includes the date they become entitled to the leave.
  • Employee's sick leave balance can be updated if their entitlement changes.
Talk to your adviser or see Employment NZ's website for information about sick leave entitlements.

Sick leave requests

If you have Payroll Admin access you can invite your employees into My Payroll so they can request leave through the My Payroll portal.

Sick leave requests pending approval will show in the payroll Payroll Overview screen. Leave requests also show on the employee's Leave tab.

You can approve the leave as a Payroll Admin or an authorised person can approve the leave. You can use the Decline with a note option to include a message if the request is declined.

You can also submit a leave request for an employee.

If an employee doesn't have a current sick leave entitlement you can approve sick leave in advance, or add a pay item for a custom leave type like 'leave without pay' or 'unpaid sick' leave.

Approved sick leave will be processed the next time the employee appears in a pay run, including leave for past pay periods.

You can use the Leave Requests report to see leave requests for an employee, or all employees.

Adjust an employee's sick leave balance

  1. In the Payroll menu, select Employees.
  2. Click the employee's name to open their details.
  3. Click the Leave tab.
  4. Click the Sick Leave amount to Edit Leave Type fields.
  5. Update the Schedule of Accrual, Hours Accrued Annually, Maximum to Accrue and Opening Balance fields as needed.

    If you update the employee's Schedule of Accrual the new accrual method will only apply going forward. If the change affects the employee's current entitlement, adjust the opening balance by the amount of the change, for example to increase the entitlement by 40 hours, add 40 to the Opening Balance.

  6. Click Save.