RDO or Rostered Day Off is a rostered period that an employee receives when they have worked more hours than they are meant to. For example, 8 hours per day, 5 days per week. Employees working more than 38 hours per week are provided with a paid Additional Day Off so that the hours that they work average out to 38 per week.

Accruing Rostered Days Off

RDO is accrued as a fixed periodical time per pay run: this consists of the difference between the daily hours established in the employment agreement and the hours worked. In this User Guide, the example is set for a 7.6-hour day but 8 hours worked per day.

Applying/Taking Rostered Days Off

As RDO in Xero is set up like any other leave item, it can be processed by getting the Employee to apply for it either via the Xero My Payroll or Xero Me Phone App. Alternatively, this can be centrally processed via the Leave Tab in Xero.

Pay Out Rostered Days Off at Termination of Employment

RDO is paid out at termination of employment at ordinary time rates, the applicable tax on the payout is part of the taxable Employment Termination Payments (ETP). RDO is the only leave payout that accrues Superannuation.

Accruing Rostered Days Off

When a pay run is processed the RDO will automatically accrue the correct hours per pay run as set up in the pay item. However, if the employee worked fewer days than normal, the accruals can be amended in the pay run.

1. Open the employee’s pay
2. Scroll to the RDO Leave Type and click on the cross to remove it
3. Edit the number of hours accrued for the pay period
   
   è  The Employee Pay
   
   
   
4. Click on [Save]
5. Finalise the Pay Run as per normal

Payout Rostered Day Off at termination

1. Go to Payroll > Pay Runs
2. Click on [+Add Pay Run]
   
   è  The Add Pay Run pop up screen opens
   
   
3. Select the correct pay period and click on [Next]
4. Open the employee’s pay
5. Click on [Set as Final Pay]
   
   è  The Set as Final Pay screen opens
   
   
   
   
6. Select/Enter the following details:
   • Termination Date > Select the employee's termination date
   • Reason for termination > Select the termination reason
   • Select last full pay period > Select this option 
   • Enter average earnings > Do not select this option
   • Select an example of a normal full pay period > Select a pay period that reflects the correct gross pay for the Employee
7. Click on [Save]
   
   è  The RDO is paid out and 32% ETP tax is calculated on the payout
   
   
   
   
8. Adjust the Tax calculation if required
9. Click on [Save]
10. Finalise the Pay Run as per normal