Element Eligibility Rules
Employees can be eligible for compensation elements in a number of different ways. For example:
- You may have a union group, with negotiated rates of pay. All members of the union are entitled to a fixed rate of pay dependent on their assigned grade and step.
In both cases you are dealing with a similar type of compensation, but the rules that govern actual values, as well as eligibility and review, are different. You define these rules in Oracle HRMS using element links.
- You might also have groups of salaried employees where you negotiate the level of salary with each employee personally. The salary value might be based on a combination of performance, personal, or market factors that are regularly reviewed with the employee.
An eligibility rule for an element is defined as a link between the element and the components of the employee assignment. Each link defines a group of employees who are eligible to receive the element.
For example, you might want to give a production bonus only to those employees who work full time in Production and are on the weekly payroll. To do this you would define a link between the element 'Production Bonus' and the combination of the 'Production' organization, the 'Full-Time' employment category and the 'Weekly' payroll.
While this link is effective, you cannot pay the bonus to anyone who is not eligible. Similarly, element linking on deductions ensures that you do not take deductions from employees not liable for them.
An employee is eligible for an element when his or her assignment exactly matches the link definition. You can link an element to the following components of an employee assignment:
For each eligibility group, you can also define different default values. For example, you might want to pay a bonus to most employees, with a default value of 2 percent. However, you might want to exclude the Sales department from the bonus, because they are paid on a commission basis, while for everyone in the HR department you might want to default 3 percent.
To do this you would define the bonus element with a default input value of 2 percent. You would then link this to each department in turn, except the Sales department. Employees in Sales would not be eligible for the bonus. When you link the bonus to the HR department, you would change the default to 3 percent.
Multiple Rules of Eligibility
You can define more than one link for each element but there must be no overlap between the eligibility criteria for the links. For example, you could create one link to the combination of grade 'A' and the job 'Accountant'. However, you could not create one link to grade 'A' and a second link to the job 'Accountant'. This would imply that an accountant on grade A is eligible for the same element twice.
Oracle HRMS does not permit you to define links that would make an employee eligible for an element more than once.
Adjusting Input Values for an Eligibility Group
Costing Compensation and Benefits
Defining Element Links
Element Link Details Report
Element Qualifying Conditions