Approve Time Off


If you have chosen to use Xero Payroll to handle your employees time off such as holiday, sickness, maternity leave etc someone will need to approve the Time Off requests so the information filters through to the payroll.

Within your company in Xero we can choose which employees have the ability to approve Time Off.  On submitting a Time Off request the employee can choose the appropriate line manager.  The line manager will then receive an email such as below to notify them about the Time Off request.

Login to Xero and then click on the appropriate Time Off request.  You can see below that until it has been approved or declined it will have a status of Requested.  At this point you could tick the box to the left of the employees name and then Approve to accept the Time Off request.  If you have multiple requests this can be a great time saving option.

If however you wish to check that the employee has sufficient holiday before approving the request then click on the request.  You can then see the Current Time Off Balance to see what accrued holiday the employee has and you can choose to accept or decline the request.

It is very important to note that the current time off balance excludes current approved requests not yet taken and all unprocessed time off.  Please bear this is in mind when deciding whether an employee has sufficient holiday entitlement.  Please check to see how the holiday entitlement is accrued.  If accruing on each pay period which is our preferred method then 1/12 will accrue each month when the payroll is processed.  This needs to be factored in when deciding if the Time Off can be booked.

You can see in the example above that there would be insufficient accrued holiday to take the day in September.  However as the September payroll has not yet been run there will be another 12.5 hours to be accrued during the month taking the balance up to 15 hours at the end of September.

You can see beneath all of the Time Off for that employee and what has already been taken by the Status of Completed and Approved is Time Off approved but not yet taken.

If you are unclear about how the holiday is being accrued you can click on the Holiday figure in the top left to see the screen below.  From this we can see that 150 hours are accrued each year which equates to 12.5 hours per month as we have chosen to accrue the Holiday over each pay period.

Using the Current Time Off Balance of 2.5 hours and adding 12.5 x 4 (number of months left in our holiday year) this employee has 52.5 hours holiday left until the end of the holiday year.  That is of course if they continue to work for the company throughout that period.  Any holiday taken not accrued can be deducted from their final salary payment.

If you wish we can also turn on/off the ability for employees to the accrued YTD entitlement to holiday on their payslips as shown below.  Accrued being the hours accrued in that pay period,  Used being the number of hours taken in the pay period and the Balance shows the YTD Time Off balance.

Once the Time Off request has been approved or declined the employee will receive an email or notification (if using the Xero Me app) as to your decision.

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