Add statutory sick leave

Work out if your employee is eligible for Statutory Sick Pay (SSP), then add start and end dates so it's captured when you process your pay runs.

Before you start

  • If your employee was sick within a certain number of days and you used a different method to record their sickness, you'll need to enter their sick leave history in Xero. Xero links the periods of sick leave and automatically calculates the correct sick-pay in future.

    Employee rights when on leave (HMRC website)

  • If your employee returns to work before the end of a maternity pay period and later becomes sick, they may be eligible for SMP for each full week of leave. Rather than using their sick leave, Xero directs you to enter the sick leave as statutory maternity leave. Xero then checks their entitlement and process the pay.

Add time off as statutory sick leave

  1. In the Payroll menu, select Time Off.
  2. Click Add time off, then select Statutory Leave.
  3. Select the employee.
  4. Select Sick.
  5. Complete the date fields. Once you enter the sickness period, Xero displays the number of waiting days and qualifying days applied to this leave.

    Add Statutory Sick Leave.

  6. (Optional) Select the Subject to pension calculation checkbox to calculate these payments in employee and employer pension contributions.
  7. If your employee hasn't provided sufficient notice or documentation, change Did [employee name] provide sufficient documentation to No. Note, your employee won't be entitled to SSP.
  8. (Optional) Select the Pregnancy related illness checkbox.
  9. Click Add. Xero checks your employee’s entitlement and shows you if they're entitled to earn SSP for this period of leave.
  10. (Optional) To override average weekly earnings:
    1. Under Time Off, click the request you want to edit.
    2. Update the amount under Average weekly earnings.
    3. Click Save.