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Agreed with Joanna here! Great response - We need this ASAP.

Long time user of Xero - and all we're hearing on this subject is 'no progress'!!! Not good enough Xero, this should be made a priority!

Joanna Johnson - Excellent response

As long-term users of your integrated Payroll and Accounting platform, we are formally requesting the development of a secure, auditable Employee Notes feature within the existing Payroll module. This request is driven by ongoing privacy, legal compliance, and risk management needs faced by Australian employers.

Employers are legally required to manage sensitive employee information, including medical notes, in a secure and compliant manner.
• The Privacy Act 1988 defines health information as sensitive information, which requires secure storage, restricted access, and appropriate use under the Australian Privacy Principles (APPs).
• The employee records exemption does not apply to information that is unrelated to payroll or handled improperly, particularly in cases involving medical or workplace wellbeing notes.

APP 6 strictly limits how sensitive employee information can be used and disclosed.
• Any information collected—especially relating to employee health or conduct—must only be used for its original, lawful purpose or with the employee’s explicit consent.
• The Office of the Australian Information Commissioner (OAIC) has ruled in recent cases that misuse of private employee information can lead to privacy breaches and civil action.

Xero’s Payroll module is a paid product marketed as an integrated and compliant solution.
• Employers expect this to include basic compliance tools such as internal, secure note-keeping for:
– Fitness-for-work assessments
– Return-to-work plans
– Disciplinary or behavioural documentation
– Leave justifications involving sensitive issues
– Adjustments for disability, injury or mental health conditions
• Instead, users are currently being forced to rely on unsecured methods or to purchase costly third-party add-ons just to meet minimum compliance standards.

Employers are required under the Fair Work Act 2009 and tax laws to retain relevant employee records for at least seven years.
• Without an integrated note function, there is no safe place to log notes that support payroll decisions or meet future audit or tribunal scrutiny.
• This increases employer exposure to claims of unfair dismissal, privacy breaches, or WHS failures.

Failure to provide this feature puts Xero users at risk.
• Storing private or sensitive data in unprotected formats within or outside the Xero environment could breach Australian Privacy Principles and workplace laws.
• Employers relying on Xero in good faith may unknowingly be exposing themselves to legal liability due to the lack of proper documentation tools.

We urge Xero to:

Introduce a secure, permission-controlled notes field in the employee profile section of the Payroll module

Ensure access is restricted according to the APP framework and all changes are auditable

Apply encryption and optional tagging for medical/disciplinary/restricted access notes

Include this feature within the standard Payroll subscription to ensure all businesses, regardless of size, can meet compliance expectations without purchasing additional products

By promoting Xero Payroll as a compliant solution while omitting this critical functionality, Xero is shifting legal risk back onto employers and exposing them to compliance failures. After years of user requests, we believe the time has come for this long-standing gap to be addressed

Megan Clark and Judy Moore

Whilst I agree with the fact that this functionality should be available what's probably important for people to know is that the reason the functionality is available in other areas of Xero and not in Payroll is due to the fact that Xero Payroll is actually not Xero. It is a completely separate platform that is embedded in Xero.

Xero purchased the Payroll solution after. In the first year of Xero existence, it did not have payroll. When the solution was purchased the functionality was never there.

Agree completely with Judy’s comment below. It’s honestly pretty frustrating—this functionality already exists in other areas of Xero, so it’s hard to understand why payroll is still lagging behind.

Saying it's part of your long-term intentions is all well and good, but in the meantime we’re left juggling external systems and subscription $$$ for them, for something that feels like it should be standard by now. Surely there’s a way to implement a basic version while those “foundational elements” are being built?

We’re not asking for the world—just a practical solution to help manage payroll more efficiently now. It’s disappointing to see such a fundamental need getting pushed down the line again. C’mon Xero, you can do better.

Hi Kelly

That still does not address the issue, as there is still no timeline (Is it this year, next year, next decade - is that what long-term intentions are) and being forced to pay for other apps is ridiculous when we already pay Xero to have a fully functional payroll, why cant it just be added to the Notes section. I don't understand how hard this would be as you can attach documents everywhere else in Xero except payroll.

I still don't understand how this has not happened yet....?

I would love a REAL reason as to why this has been ignored for so many years and not just a fluffy explanation about competing priorities and demand and other more important things..... @ Kelly Munro.....?

Upload a pdf file into an employee timesheet or pay run (for evidence)?

This would be extremely helpful and seems extraordinarily shortsighted of Xero to miss such an obvious and useful tool.

Add an option to upload a copy of the Sick Note / Fit Note to the leave

As well as adding attachments, it would be handy to have some sort of filtering so you can search on a particular type of note (Eg Leave Forms; Onboarding Documents; Salary Review etc)

We need to keep copies of licences/inductions etc for each employee, would be good if it had a spot for that with reminders for expiry etc

The ability to upload a document to notes in the payroll section would enable sick notes etc to be kept with the employees record

A definite necessity to keep all employee information in one easily accessible place, without the need for paper filing. That's what we are all aiming for isn't it?? You can add a photo ( not critical in my opinion). Why not other files? Surely a minor tweak to an existing function?

Please give this feature your priority!! Given we can already upload documents to invoices, bills and contacts, surely it would not be that difficult to implement??

Add the option to upload a photo to the employee timesheet. ie: daily work docket

Come on !
This needs to be available to each pay run & employees file.
Get this must needed, basic & obvious inclusion added ASAP

This is a business critical basic need to upload employee documentation.

Dext Vault might solve this problem since xero won't