XBert Type: Standard
Accounting Software: Xero
Country Restriction: Australia only
Risk Type: Payroll Risk
Business Function: Payroll
Overview
The "Employee Long Service Leave entitlements missing" XBert finds employees who have been with the business long enough to qualify for Long Service Leave (LSL) under their state's rules, but who have no Long Service Leave balance set up in payroll.
Long Service Leave is a legal entitlement in Australia. Tracking it correctly keeps you compliant and makes sure this growing liability is reflected in your records before an employee takes leave or leaves the business.
What it does
This XBert reviews your active payroll employees and checks each one's length of service against the Long Service Leave threshold for the state your business is registered in. It then looks at the leave types set up on each employee's record to confirm whether a Long Service Leave balance exists.
It only looks at employees who:
Are marked as active in payroll
Have an employment basis of full-time or casual
Have a recorded start date
Have been paid in the last six months
How it works
XBert works out how long each qualifying employee has been employed and compares it to the Long Service Leave threshold for your state. The threshold is 5 years for businesses in New South Wales and 7 years for all other states and territories. If an employee has reached or passed that threshold and has no leave type containing "long service" set up on their record, XBert raises an alert for that employee.
To avoid false alarms, the XBert deliberately ignores some records. It does not flag inactive or terminated employees, employees with no recorded start date, or anyone who has not been paid in the last six months. It also recognises any leave type whose name includes "long service" (for example "Long Service Leave Accrual" or "Casual Long Service Leave"), so a slightly different name will not trigger a false alert.
The XBert applies to Australian businesses using Xero with payroll enabled. It is skipped for businesses that run payroll through KeyPay or Employment Hero, because those leave balances are not available for XBert to check.
Example/Use Case
Maria has worked full-time at a Melbourne business for 7 years and 6 months. Under Victorian rules she is entitled to a pro-rata Long Service Leave payout if she resigns. However, her payroll record in Xero has no Long Service Leave type set up, so nothing is accruing.
XBert flags Maria's record. The bookkeeper adds the correct Long Service Leave entitlement, and the accumulated liability is now tracked correctly, keeping the business compliant and the accounts accurate.
Accounting software
Xero only.
Which countries it supports
Australia only.
Processes
This XBert falls under the Payroll business area.
To resolve it:
Open the flagged employee's record in your accounting software
Confirm their start date and length of service are correct
Add a Long Service Leave entitlement and set the correct opening balance for their years of service
If the employee is genuinely not eligible (for example they are covered by a portable or third-party Long Service Leave scheme, or exempt under their award), no change is needed
Once the record is corrected or confirmed, mark the XBert as resolved
Keeping Long Service Leave records accurate ensures employees receive their correct entitlements, supports better liability and cashflow reporting, and reduces compliance risk during an audit.