XBert Type: Standard
Accounting Software: Xero
Country Restriction: AU only
Risk Type: Payroll Risk
Business Function: Payroll
Overview
The "Monthly Employee Leave Balance Warning" XBert identifies employees who have accrued a high amount of annual leave. Specifically, it flags those with a balance greater than 80% of their annual entitlement.
This alert runs on the first day of each month, helping you proactively manage leave liabilities and prevent future cash flow or staffing issues.
What it does
XBert reviews all active employees and checks their annual leave balance against their total yearly entitlement. If the balance is greater than 80%, it will:
Generate an alert for each qualifying employee
Present a list of employees and their current leave balances
Assist in leave planning and policy enforcement
How it works
Using data from your payroll system, XBert calculates:
Each employee’s annual leave entitlement
The percentage of leave accrued as of the first day of the month
Employees who meet or exceed the 80% threshold are included in the alert
This ensures that employers are notified before balances grow too large, enabling timely intervention.
Example/Use Case
Joan has been working at Jim’s Appliance Store for several years. Due to flexible working arrangements and minimal holidays taken, her accrued annual leave has reached 9 weeks.
Joan announces her retirement and expects her full leave entitlement paid out. Jim now has to pay for 9 weeks of unused leave while simultaneously onboarding and training a new hire. This puts unexpected pressure on the store’s cash flow, requiring Jim to secure short-term financing to cover costs.
Accounting software
Xero
Which countries it supports
Australia only.
Processes
This XBert is part of the Payroll Services category.
To manage and mitigate the risk:
Review leave balances monthly
Consider encouraging employees to take leave if balances are high
In accordance with your industry’s award or agreement, you may:
Direct staff to take leave
Negotiate a cash-out of excess leave (with mutual agreement)
Ensure staff always maintain at least four weeks of leave, as required by law
Regular leave management helps maintain healthy staffing levels, improve morale, and protect your business from unplanned financial strain.