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Employee Long Service Leave entitlements missing

Marsha Galicia avatar
Written by Marsha Galicia
Updated yesterday

XBert Type: Standard
Accounting Software: Xero
Country Restriction: AU only
Risk Type: Payroll Risk
Business Function: Payroll

Overview

The "Employee Long Service Leave entitlements missing" XBert identifies employees who have been with the business for a substantial period (as defined by state-based rules) but do not have a Long Service Leave (LSL) entitlement set in their payroll record.

This helps employers stay compliant with Australian employment regulations and ensures payroll liabilities are correctly reflected in financial records.

What it does

This XBert checks all active employees in Xero who:

  • Have an employment type of full-time or part-time

  • Have a start date older than the LSL eligibility threshold (e.g. 5, 7, or 10 years depending on state)

  • Have been paid in the past six months

  • Do not have a Long Service Leave entitlement set up

If an employee meets all the above criteria and LSL has not been recorded, XBert triggers a warning.

How it works

XBert uses the employee’s start date and compares it to LSL eligibility rules across Australian states and territories. It then checks the leave setup in Xero to verify whether the LSL entitlement is in place. If not, it raises an alert for review.

This alert is shown per individual employee and includes relevant employment details such as type, years of service, and last paid date.

Example/Use Case

Maria has worked at a Melbourne-based business for 7.5 years on a full-time basis. Under Victorian law, she is eligible for a pro-rata payout of long service leave if she resigns. However, her payroll record has no LSL entitlement linked.

XBert detects this omission and flags Maria’s record for review, prompting the bookkeeper to update the payroll setup, ensuring accurate liability reporting and compliance.

Accounting software

Xero only.

Which countries it supports

Australia only.

Processes

This XBert falls under the Payroll Services category.

To resolve this:

  • Review the employee’s record in your accounting software

  • Add Long Service Leave entitlements if applicable

  • If the employee is not eligible (e.g. covered by a third-party LSL scheme or exempt under an award), simply file the alert

Maintaining accurate leave records supports better cashflow forecasting, ensures employees receive their correct entitlements, and reduces the risk of financial penalties during audits.

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