Add shared parental leave and pay

Set up Statutory Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) for an employee. Xero will work out if your employee is eligible, and account for the employee's leave and pay when you post a pay run.

Before you start

Before processing a request for shared parental leave and pay, you’ll need to:

  • Process the employee’s qualifying leave (eg maternity, paternity or adoption leave).
  • Receive the employee’s binding notice of the date they'll end maternity or adoption leave.

An employee can split their shared parental leave into blocks rather than taking it all one go. They must provide notice for each block request.

Add an employee’s shared parental leave and pay

You should add a new Shared Parental item for each block of leave requested by your employee. When you add a block, you can update the total weeks of ShPP and SPL taken by the employee's partner to date. This helps ensure your employee doesn't exceed their maximum leave entitlement.
  1. In the Payroll menu, select Time Off.
  2. Click New, then select Statutory leave.
  3. Select the employee, then select Shared Parental.
  4. Select Yes if the employee has provided binding notice to end their prior qualifying leave. Otherwise, select No. You can’t process the employee’s request if they haven’t provided binding notice.
  5. Complete the fields for Partner details and Shared parental leave details. Once you enter the leave period, Xero displays the number of weeks and days the employee is taking off.

  6. Select Yes if the employee is applying for unpaid shared parental leave.
  7. Select Yes if the employee's shared parental pay is subject to pension calculations.
  8. Click Add. Xero checks if your employee can earn shared parental pay for this period of leave.

Shared Parental Leave In Touch (SPLIT) days

Your employee can work up to 20 SPLIT days during shared parental leave without bringing it to an end. You can only add SPLIT days once your employee’s shared leave has started.

  1. In the Payroll menu, select Time Off.
  2. Click the Statutory Shared Parental request you want to edit.
  3. Use the date picker to add SPLIT days to the Shared Parental Leave in touch (SPLIT) days field.
  4. Click Save.
If you want to pay your employee their normal daily rate for their SPLIT days, use the additional earnings pay item on the employee’s draft payslip.

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