Global small business platform, Xero has announced a strategic partnership with app partner and global people platform, Deputy to embed Deputy’s capability into Xero Payroll for Australian customers.

Once available, Deputy’s workforce management capability will be integrated into the Xero platform, bringing workforce management together with Xero’s payroll and accounting in one place for Australian customers. Xero and Deputy will also execute a go-to-market partnership in New Zealand with co-branded marketing efforts. Xero will also invest US$25million to take a minority position in Deputy.

Xero will retire its Planday business in Australia but continue to focus on Planday’s core business in Europe, including the UK. Planday will support Australian customers until 30 September 2024, during which time they have the option to transition to Deputy.

Xero CEO, Sukhinder Singh Cassidy (above) said, “As part of our focused FY25-27 strategy, Xero continues to optimise how we allocate resources to get the right results for customers, Xero and our stakeholders. As part of our commitment to help small businesses run more effectively, we’re excited to deepen our already strong integration partnership with Deputy to bring their workforce management technology to Xero’s Australian customers, all in one platform.

“These changes also provide an opportunity for Planday to focus its efforts on its strong core European markets, and maximise subscriber growth and customer value creation opportunities there even further.”

Deputy CEO, Silvija Martincevic (feature image) commented, “Deputy is thrilled to announce this transformative strategic partnership with Xero as it connects two industry-leading global companies to offer a seamless all-in-one solution for accounting, payroll, and workforce management.

“This collaboration reflects our shared dedication to product excellence, innovation, and serving the needs of small businesses. By embedding our platforms through this partnership, we will empower hundreds of thousands of businesses across Australia with the tools they need to thrive in today’s dynamic business environment.”