PeopleSoft Enterprise Global Payroll for Brazil 9.1 PeopleBook

Setting Up Termination Pay

This section provides an overview of termination setup for Brazil and discusses how to define termination versions.

Understanding Terminations

The process used to trigger termination payments in Global Payroll for Brazil is based on the concept of a termination version. A termination version is a collection of actions and reasons that can trigger specific termination earnings and deductions. In Global Payroll for Brazil, both payees and termination earnings and deductions are associated with termination versions. When you define a termination earning or deduction, you link it to a termination version. At the same time, when you terminate a payee, the payee is automatically linked to the termination version that defaults from the termination action and the reason for his termination. In this way, the system can identify and process only those earnings and deductions associated with the same termination version.

Elements Used in the Termination Process

The following table identifies key elements of the termination process and explains how they work together to trigger termination pay:

Element	Description
RC VR VER RESC EMP	Delivered variable that contains the termination version (representing the termination action and reason) for a terminated payee. Note. Termination versions are defined on the Termination Versions page.
RC VR RAZAO BAIXA	Delivered variable that contains the termination reason.
WORKFORCE_SYNC	Service operation that enables the delivered Global Payroll variables RC VR VER RESC EMP and RC VR RAZAO BAIXA to be inserted in the supporting element override table at the payee level (thus associating a terminated payee with the termination version that applies to his or her termination). The handler and associated application class that inserts these variables is TERMINATION VERSION JOB.
RC GC VER RESCIS	Generation control element that determines whether earnings or deductions should be paid in response to a payee's termination. This element is based on the generation control formula RC FM VER RESCI GC.
RC FM VER RESCI GC	Formula that reads via an array element the earnings and deductions eligible for each termination version based on the setup pages. The system compares the earnings and deductions for the termination version to the processing earning/deduction; if it finds a match, that element (earning or deduction) is calculated for the employee's termination process.

These elements are used to trigger termination pay, as outlined in the following steps:

When a payee is terminated or laid off and the appropriate action/reason codes are entered on the Job Data pages in PeopleSoft Human Resources, the system uses the service operation WORKFORCE_SYNC to insert the Global Payroll variables RC VR VER RESC EMP (containing the termination version) and RC VR RAZAO BAIXA (containing the termination reason) as supporting element overrides at the payee level (Global Payroll & Absence Mgmt, Payee Data, Create Overrides, Supporting Elements). The Begin Date and End Date equal the Termination Date to ensure that the system processes termination earnings and deductions only in the correct segment.

In other words, the service operation links the payee to the termination version (the action and reason combination) that applies to his or her specific termination.

Note. The only actions capable of triggering the service operation used to insert the variables RC VR VER RESC EMP and RC VR RAZAO BAIXA in the supporting element override table at the payee level are TER (termination), LOF (layoff), and COM (completion).
Just as each terminated payee is linked to a termination version, each termination earning or deduction is linked to a termination version on the Terminations BRA - Earnings/Deductions page.
When a payee is terminated or laid off, Global Payroll for Brazil uses the generation control element RC GC VER RESCIS (in combination with the formula RC FM VER RESCI GC) to include in the employee's final payment only those earnings and deductions that are part of the same termination version associated with the payee in Step 1.

This is done by means of the following comparison:
- When you run a payroll, the generation control element (which is linked to each delivered termination earning or deduction on the Calculation page of the Earning/Deduction Definition component) checks the payee's termination version, as represented by the variables RC VR VER RESC EMP (containing the termination version).
- At the same time, the generation control element checks the termination versions associated with each delivered termination earning and deduction element via an array element that reads the Terminations BRA - Earnings/Deductions page.
  
  If the payee's termination version (represented by the variables RC VR VER RESC EMP ) has associated an earning or deduction than it can be processed.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Brazil. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll PeopleBook.

Setting Up Termination Versions

To define termination versions, use the Terminations (GPBR_TERM_ACTN_RSN) component.

This section presents an overview of termination versions and discusses how to:

Define the termination versions used to process termination pay.
Associate earnings and deductions with a corresponding termination version.

Understanding Termination Versions

Global Payroll for Brazil groups the qualifying actions and reasons for making termination payments into termination versions. Different termination action and reason combinations trigger different sets of special termination earnings and deductions. To define termination versions and then trigger the payments associated with a termination version, you must do the following:

Define your termination versions on the Termination Versions page.
On the same page, define the associated actions/reasons that will trigger payment.

Termination versions are the combinations of actions/reasons that cause a group of termination earnings or deductions to be processed.
On the Earning/Deductions page, associate each earning or deduction with a corresponding termination version.
On the Job Data pages in PeopleSoft Human Resources, specify termination actions such asTermination, Completion, or Layoff as the action and enter a corresponding reason.

When you specify a termination action as the action in combination with a qualifying reason, termination pay will be processed for the terminated or laid off employees—as long as the termination or layoff action/reason combination is recognized, by generation control, as valid for triggering termination payments.

Pages Used to Define Termination Versions

Page Name	Definition Name	Navigation	Usage
Termination Versions	GPBR_TERM_ACTN_RSN	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Terminations BRA, Terminations Versions	Define termination versions and the qualifying actions and reasons for triggering termination pay.
Earnings/Deductions	GPBR_TERM_VERSION	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Terminations BRA, Earnings/Deductions	Associate earnings and deductions with a corresponding termination version.

Defining Termination Versions

Access the Termination Versions page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Terminations BRA, Termination Versions ).

Termination Version

Displays the name of the termination version you are defining.

Version - Action/Reason Definition

Use the fields in the Version - Action/Reason group box to define the termination action/reason combinations that make up the termination version.

Note. A single termination version can consist of many different action/reason combinations—as long as all the combinations trigger the same set of termination earnings or deductions.

Action

Specify the action that triggers termination pay in combination with a specific reason. Values are:

COM (Completion)

LOF (Layoff)

TER (Termination)

TWB (Terminated With Benefits)

TWP (Termination With Pay)

Reason Code

Specify the reason that triggers termination pay in combination with a specified action. Values for each action are:

For COM Action: BMC (Board Member Term Completed), DEA (Death), DIS (Disability), EOA (End of Assignment), INV (Involuntary), RED (Staff Reduction), RET (Retirement), UNS (Unsatisfactory Performance), and VOL (Voluntary).
For LOF Action: RED (Staff Reduction), SEA (Seasonal Closure), SLO (Strike/Lock-out), and TMP (Temporary Closure).
For TER Action: ATC (Agreed Term. of Apprent of CDD), ATT (Attendance), CDE (Closing Down of Establishment), CHI (Child/House Care), CON (Misconduct), DEA (Death), DIS (Dishonesty), DSC (Discharge), EAB (Employer's Anticipated Breach), EAC (End of Apprenticeship Contract), EES (Dissatisfied w/Fellow Employee), EFT (End of Fixed-Term Contract), ELI (Elimination of Position), EOD (End of Demand), EPP (Employer's End Probation Time), ERT (Early Retirement), FAM (Family Reasons), GMI (Gross Misconduct), HEA (Health Reasons), HRS (Dissatisfied with Hours), ILL (Illness in Family), INS (Insubordination), JOB (Job Abandonment), LOC (Dissatisfied with Location), LTC (Legal Termination of Contract), LVE (Failure to Return from Leave), MAR (Marriage), MIS (Misstatement on Application), MUT (Mutual Consent), OTP (Resignation-Other Position), PAB (Payee's Anticipated Breach), PAY (Dissatisfied with Pay), PCD (Premises Closed), PER (Personal Reasons), POL (Dissatisfied w/Comp. Policies), PPO (Pension Payee Off), PPP (Payee's End Probation Time), PRM (Dissatisfied w/Promotion Opps), PTD (Partial/Total Disability), RAT (Retired from Affiliate), RED (Staff Reduction), REF (Refused Transfer), REL (Relocation), RES (Resignation), RET (Return to School), RKM (Release Kenmu), RLS (Release), RWU (Receivership or Wind-Up), SUP (Dissatisfied with Supervision), TAF (Transfer to Affiliate), TAR (Tardiness), TMP (End Temporary Employment), TRA (Transportation Problems), TYP (Dissatisfied w/Type of Work), UFC (Unforseen Circumstances), UNS (Unsatisfactory Performance), VIO (Violation of Rules), VSP (Voluntary Separation Program), and WOR (Dissatisfied w/Work Conditions).
For TWB Action: TWB (Terminated With Benefits).
For TWP Action: TWP (Termination With Pay).

Termination Reason

Enter a termination reason. This information is used in some Brazilian reports (GRFC).

Associating Earnings and Deductions with Termination Versions

Access the Earnings/Deductions page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Terminations, Terminations BRA, Earnings/Deductions).

Entry Type

Select whether you are entering an Earnings or a Deduction element.

Element Name

Select the element to associate with this termination version.

Entry Type	Select whether you are entering an Earnings or a Deduction element.
Element Name	Select the element to associate with this termination version.