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NZ Payroll - Sick leave entitlements to automatically accrue when employees are included in any future pay run following their entitlement.

As a Chartered Accountant, I’ve observed an issue in Xero’s handling of sick leave entitlements that I believe warrants improvement. Currently, if an employee is not included in the pay run closest to their sick leave entitlement date, the entitlement does not accrue. This creates a significant gap in compliance with employment obligations and adds unnecessary administrative burden to correct.
To enhance the functionality and flexibility of Xero's payroll system, I think that sick leave entitlements should automatically accrue when the employee is included in any future pay run following their entitlement date. This adjustment would ensure compliance with employment standards and streamline the payroll process for businesses and their advisors.
I believe this change would provide considerable value to Xero users by reducing errors and making the system more intuitive. I’d appreciate support from the community to bring this to the attention of the development team.
Thank you for considering this improvement.

1 vote
Natalee Barge shared this idea  ·   ·  Report…  ·  Admin →
How important is this to you?
submitted  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Thanks for your feedback of how Xero handles sick leave entitlements, Natalee.

I've made sure this is shared back with our product team, and while we can understand the reason for change you'd like to see here, we want to be open that this isn't something we have planned in the immediate future.

Right now, if an employee isn't included in the scheduled pay run when their leave anniversary date falls, you'll need to do a manual leave adjustment to grant the employee the missed entitlement.

If there's any news of change for this, we'll update you here.

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  • Terry Yee commented  ·   ·  Report

    "Right now, if an employee isn't included in the scheduled pay run when their leave anniversary date falls, you'll need to do a manual leave adjustment to grant the employee the missed entitlement."

    Hi Kelly,
    This is obviously a work around. So how do you do a manual adjustment to reflect the additional entitlement?

  • AdminKelly Munro (Community Manager, Xero) commented  ·   ·  Report

    Thanks Natalee, appreciate how a warning could also be useful in this scenario. It's also not something we have planned for the time being but we'll begin to get a sense of the overall interest in the community from your idea here, and continue to review as the team plan and prioritise. We'll let you know if there's any progress to share.

  • Natalee Barge commented  ·   ·  Report

    Thank you Kelly. That is disappointing. I wonder how many employers are aware of this limitation. If there are no plans to improve the payroll system then maybe an alert could be sent out to payroll administers when their employee is about to reach their sick pay anniversary to say something like "Warning - sick pay anniversary approaching. If the employee is not included in the next pay run a Manual Adjustment will need to be made to grant the employee the missed entitlement".

  • Natalee Barge commented  ·   ·  Report

    As a Chartered Accountant, I’ve observed an issue in Xero’s handling of sick leave entitlements that I believe warrants improvement. Currently, if an employee is not included in the pay run closest to their sick leave entitlement date, the entitlement does not accrue. This creates a significant gap in compliance with employment obligations and adds unnecessary administrative burden to correct.
    To enhance the functionality and flexibility of Xero's payroll system, I think that sick leave entitlements should automatically accrue when the employee is included in any future pay run following their entitlement date. This adjustment would ensure compliance with employment standards and streamline the payroll process for businesses and their advisors.
    I believe this change would provide considerable value to Xero users by reducing errors and making the system more intuitive. I’d appreciate support from the community to bring this to the attention of the development team.
    Thank you for considering this improvement.