Manage Employee Leave

Xero makes leave management straightforward for both employees and payroll administrators. Staff submit requests online, managers approve them, and approved leave flows automatically into the next pay run.

Employee and Manager Workflow

Staff submit leave requests through the employee portal online. Managers with the appropriate role can log in and approve or decline requests directly.

Payroll Administrator View

As a payroll administrator, go to Payroll and select Leave. Here you can see:

• All leave requests across your team
• The status of each request (pending, approved, declined)
• Full leave history

Create Leave on Behalf of an Employee

If a staff member can't submit their own leave request, you can create one for them directly in Xero and approve it straight away — no need for it to go through the employee portal.

Report on Leave

To see leave balances, upcoming requests, and historical transactions, go to Reports and look under the Payroll section. Leave reports help you plan staffing and identify any issues before they affect a pay run.

Leave in the Pay Run

When you create a pay run, all approved leave for the relevant pay period is automatically included. You don't need to manually add it — Xero pulls it in for you.