XBert Type: Standard
Accounting Software: Xero
Country Restriction: Australia only
Risk Type: Payroll Risk
Business Function: Payroll
Overview
The "Employee Leave Entitlements Missing" XBert finds active full-time and part-time employees who have no leave entitlements set up in payroll. Missing entitlements can short-change employees, create compliance breaches, and understate your business's leave liabilities in the accounts.
What it does
This XBert reviews your payroll records and compares each active employee's employment type against their leave set-up. It looks for:
Employees classified as full-time or part-time
Employees with a completed tax declaration (so they are properly set up as an employee)
No leave balance of any kind on the record — for example no Annual Leave and no Personal/Carer's Leave
When an eligible employee has no leave entitlements at all, the XBert raises an alert for that person.
How it works
XBert checks every active employee in your payroll. For anyone recorded as full-time or part-time who also has a completed tax declaration, it checks whether any leave entitlement exists on their record.
If no leave balance is found at all, that employee is flagged. The alert deliberately ignores:
Casual and other non full-time/part-time employees, who are not entitled to accrued leave in the same way
Employees who are inactive or terminated
Employees who already have leave entitlements set up, even partially
If your payroll is run through KeyPay or Employment Hero rather than Xero's own payroll, this XBert is not raised, because leave balances are held outside Xero in those set-ups and a flag would be misleading.
Example/Use Case
Joan worked as a casual for several years and then moved into a full-time role on a salary of $72,000. Her employment type was updated in payroll, but no leave entitlements were ever assigned to her record.
Months later Joan takes two weeks of annual leave. Because there is no leave tracking on her record, the leave is not deducted from a balance and the business's payroll leave liability is understated. By the time it is noticed, several pay runs have to be corrected and back-dated accruals recalculated. Setting up Joan's Annual Leave and Personal/Carer's Leave entitlements when her role changed would have avoided the rework and kept the financials accurate.
Accounting software
Xero.
Which countries it supports
Australia only.
Processes
This XBert is part of the Payroll business area.
To resolve:
Open the flagged employee's record in Xero payroll.
Confirm the employee's correct employment type (full-time or part-time).
Add the leave entitlements that apply to the role, such as Annual Leave and Personal/Carer's Leave, using the correct award or agreement rates.
Check whether any leave already taken needs to be back-dated or adjusted so the balances are accurate.
If the employee is genuinely an exception (for example a company director with a documented arrangement), note the reason on file.
Once the entitlements are set up correctly, mark the XBert as resolved.
Keeping leave entitlements accurate protects your employees, keeps payroll liabilities correct in the accounts, and reduces the risk of a compliance breach.