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Length of Service and Accrual Amount Rules

In Oracle HRMS, the first day of the month of an employee's hire date is the default date from which his or her length of service is calculated for accrual purposes. For example, someone hired on 18 January 1997 completes one year of service on 1 January 1997, and someone hired on 31 December 1996 completes one year of service on 1 December 1997.

Length of Service Override

For individual accrual plan participants, you can override the default date from which a plan starts its length of service calculations. This is useful for managing exceptional cases that arise when, for example, employees who already have accumulated periods of service in your enterprise transfer from one place to another. You enter the date override when enrolling a participant in a plan.

See: Enrolling Employees in PTO Accrual Plans

Length of Service Bands

For many accrual plans, the time off that plan participants can accrue increases with their length of service. That is, length of service bands determine accrual amounts. In addition, these bands can determine ceiling and maximum carryover amounts for plans that have these rules.

For each accrual plan in Oracle HRMS, you set up one or more length of service bands, supplying for each the hours or days of PTO that participants can accrue each year, together with any ceiling and maximum carryover of accrued time.

Ceiling Rules

The ceiling rule, found in some vacation accrual plans, sets a maximum amount of PTO an employee can hold at any time. When a participant's accrued PTO reaches the ceiling, no additional time accrues. Accruals begin again only after the participant uses some accrued time.

Maximum Carryover Rules

Maximum carryover rules, found in both vacation and sick leave plans, set the maximum amount of unused PTO a participant can carry over from one year to the next.

Carried Over and Residual PTO

To manage the carryover to a new calendar year of employees' unused PTO, you run the PTO Carry Over process at year end. This process first calculates participants' net PTO as of the last day of the year's last pay period. This calculation insures that this period's accruals do not exceed any plan ceilings that may exist. The process then checks the maximum carryover permitted, to determine for each participant both the amount to carry over, and the amount of any residual PTO that cannot be carried over.

For employees with unused, accrued time to carry over, it enters this time on the element generated to hold carried over time for the plan. Similarly, for employees with unused, accrued time they cannot carry over, it enters this time on the element generated for the plan to hold residual time.

PTO Sale or Purchase

Your enterprise may have policies permitting accrual plan participants, under certain circumstances, to sell back PTO they have accrued but not used. You may also permit them to purchase additional PTO. Because such policies and rules are not standard across enterprises, Oracle HRMS has no method in place for managing PTO sale or purchase. However, you can design a method and define elements for doing this, customized to your own requirements.

See: Reviewing or Changing Net Accrual Calculations

See Also

Accrual Plan Setup Steps

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