This article is designed for: User Type: Admins & Payroll Managers Access: Web Browser

Xero accrues leave based on your Ordinary Hours worked; therefore, if you have other rate-based pay items or different pay levels, a staff member works, you may not be accruing leave correctly. 

Example Scenarios

Suppose Tim works in the kitchen as a chef but does a couple of extra shifts in the bar making cocktails. He's a very experienced chef but only beginning in the bar, so his rate in the kitchen is different to his rate in the bar. Tim would have two different Ordinary Hours.
Jane also works in the bar. She often works from the afternoon during regular business hours until late evening. When working evenings, the rate Jane is paid is not a multiplier of her Ordinary Hours because it is a fixed increase in the pay rate for all staff. Therefore, her pay item cannot be a multiplier; it has to be a new rate-based pay item.
Xero doesn't accrue leave hours on either of the above examples. Therefore, you need to work around the limitation of the system.


  1. Once you have exported your payroll from ClubsHR
  2. , you can go to Xero and review the timesheets. Please note any staff names that have hours that are rate-based rules or for a different set of ordinary hours that aren't assigned to them in their employee profile.

    This timesheet shows that Benjamin worked 6 hours of early morning rate. So I've noted down his name.
  3. Once you have noted all staff, approve the timesheets as usual.
  4. Then go to the Xero pay run screen.
  5. For any staff noted down, click on their pay run line, and you can work out the total hours worked outside of the ordinary hours and add an Ordinary Hours line item into the timesheet with a $0 rate. This will accrue the leave hours they are entitled to without overpaying the staff member. In my example below, I have six total hours outside Benjamin's ordinary hours. So I am adding 6 hours of ordinary pay at a $0 rate.


Employee Profile

If you are still determining your staff member's ordinary hours pay item, it should show on the payslip, assuming they worked some for that pay period. However, if they didn't work in that pay period, you can go to the employee page in Xero, find the staff member and click on the Employment tab in their profile. You will see their ordinary hours here.




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