PeopleSoft Enterprise Global Payroll for France 9.1 PeopleBook

Understanding AFB Rules

Many industries have developed special working and payment arrangements that are available to their employees through AFB (Association Française des Banques) collective agreements.

This chapter discusses:

The AFB process section.
AFB compensation elements.
AFB transport allowances.
AFB end of contract allowances.
AFB retirement allowances.

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

The AFB Process Section

AFB sections are triggered in the process list if the payee has an AFB collective agreement set up in PeopleSoft Human Resources. This is verified by using the conditional formula AFB FM TEST CC, which is delivered as sample data and which you can modify to suit your needs.

Note. The formula AFB FM TEST CC determines whether the system element LABOR AGREEMENT is equal to the variable AFB VR VALUE. By default, the value of the variable AFB VR VALUE is equal to AFB. (AFB VR VALUE is a variable with a character format.) If the value of the system element LABOR AGREEMENT is equal to AFB, the sections managing the AFB rules are triggered. PeopleSoft does not provide the AFB collective agreement value in the HR tables. There are two solutions to handle this situation: you can create a labor agreement with a value equal to AFB for the banking collective agreement, or you can create the banking collective agreement with the value that you want, but you must modify the value of the variable AFB VR VALUE in order to have this value equal to the labor agreement name.

Setting Up and Generating Wage Certificates

AFB Compensation Elements

This section discusses:

AFB earning elements.
The AFB thirteenth payment.
The AFB diploma premium.

AFB Earning Elements

The AFB collective agreement stipulates that the annual salary for a payee must be paid in 12 monthly payments, along with an additional amount for the thirteenth month, which is usually paid during the December payroll. However, with the agreement of the work council, companies can pay the annual salary by making 12 identical payments (rather than using the thirteenth amount).

The annual salary can be managed by creating either:

one rate code for twelve months and one rate code for the thirteenth month, or,
one rate code for thirteen months, or
one rate code for twelve identical monthly payments.

If the employee was hired during the current year, or leaves before December, the thirteenth amount is calculated in proportion to the time worked using the formula: annual basic salary * 12 / 13 / calendar days of the year.

The daily rate is also calculated in proportion to the time worked for part-time payees.

PeopleSoft delivers three earnings as sample data. This table lists the earning elements for each case:

Earning Element	Description
AFB SAL 13 M	Used to calculate 12 payments when a payee receives 13 payments.
AFB SAL 13EM	Used to calculate the thirteenth payment.
AFB SAL 12M	Used if the payee receives 12 identical amounts.

Note. These earnings are automatically segmented and prorated when they are assigned to payees on the Element Assignment by Payee or Payee Assignment by Element pages and the assignment period covers only a portion of the pay period.

See Element Segmentation Caused by Payee Overrides.

PeopleSoft does not maintain these earnings. The calculation rules and proration rules have been defined by PeopleSoft, but you may change them to fit your own requirements.

Note. One instance in which you might want to modify the proration rules is for the proration applied to the calculation of the thirteenth month. The formula ABS FM BASE 13EME calculates the amount of the thirteenth-month payment.

Note. The PeopleSoft system does not check whether earnings are below the statutory minimum. Statutory minimum earnings are defined by the collective agreement according to the defined category of the employee. The PeopleSoft system also does not check whether earnings paid comply with the salary scale stipulated by the collective agreement.

The AFB Thirteenth Payment

The extra earning element for the thirteenth payment—AFB SAL 13EM—is triggered by the generation control element AFB GC 13EME MOIS when the payee leaves or when the thirteenth payment is due. Payees choose in which month they want to receive the payment.

The earning is prorated based on calendar days, calendar half days, and hours worked in the year. The prorations are calculated using accumulators, which are listed in this table:

Accumulator	Description
AFB AC JR CAL AN	Stores the number of calendar days of the year. This accumulator is populated only by the calendar days included in the segment period paid.
AFB AC JR NPAY AN	Stores the number of calendar days unpaid. Populate this accumulator based on how your organization defines an unpaid day.
AFB AC JR DPAY AN	Stores the calendar days half paid. Populate this accumulator based on how your organization defines a half-paid day.
AFB AC HR THEO	Populated by the number of theoretical hours in the segments that make up a year.
AFB AC HR ABS AN	Stores the number of hours of absences.

The accumulators in the preceding table are used in the formula AFB FM BASE 13EME to calculate the thirteenth payment using a proration factor based on the amount of time the payee works for the company during the year.

The payment date is stored in the variable AFB VR DAT PAY 13M. The payment of the thirteenth month is triggered when the date that you indicate in this variable is included in the segment period.

The AFB Diploma Premium

A payee may be granted an extra earning, called a diploma premium. The earning, PRM DIPL AFB, is entered using positive input and is subject to contributions and income tax.

Note. All elements described here are delivered as sample data and are not maintained by PeopleSoft. You may modify the rules for these earnings as required by your company's needs. The only exception is the earning Diploma Premium, which is maintained by PeopleSoft.

AFB Transport Allowances

This section discusses:

Transport allowance amounts.
Other transport benefits.

Transport Allowance Amounts

There are two transport allowance amounts. One is for large cities (Paris and large cities listed in the labor agreement), and the other is for smaller cities (cities with more than 100,000 inhabitants listed in the labor agreement). The allowance amounts have two associated earning elements: PRM TR 1 NC and PRM TR 2 NC.

Using the Element Assignment by Payee or Payee Assignment by Element pages in the Global Payroll core application, assign the earning PRM TR 1 NC for Paris and large cities, or PRM TR 2 NC for cities with more than 100,000 inhabitants.

A payee is allowed to receive only one of these two allowances, so the two earnings are exclusive and should not be triggered for the same payee. The system does not control whether the two earnings are entered simultaneously; it is your responsibility to manage this process.

The earnings for smaller cities are not subject to tax or social security contributions because the limit is equal to the earnings. The other earnings are split into an amount subject to contributions and an amount not subject to contributions.

You assign the allowance to the payee. Global Payroll for France does not check whether the allowance for a large city is being paid to a payee working in a small city. However, the system does check whether the earning is subject to social security contributions and tax.

Other Transport Benefits

Payees may receive other transport benefits. For example, someone may work in Paris and receive an allowance for a Carte Orange.

Some payees may receive a car benefit in kind. A payee receiving an allowance for a Carte Orange, or a transport benefit in kind, is not eligible to receive a Premium 1 or Premium 2 transport allowance.

A generation control element verifies whether either of these allowances is being paid, and if either is being paid, a Premium 1 or Premium 2 allowance is not triggered, even if requested by the user.

AFB End of Contract Allowances

This section discusses:

Severance allowance entitlement.
Severance allowance calculation.
Seniority and 2002.

Severance Allowance Entitlement

When a payee's contract is terminated prematurely for a nondisciplinary or economic reason (that is, the payee is laid off), the payee is entitled to a severance allowance as defined by the collective agreement. The allowance is paid in one sum and depends on various conditions, such as term of service and the reason for the layoff. The allowance amount depends on the salary base, years of service, and the payee's category.

Payees dismissed for disciplinary reasons, including those sentenced in court, receive the statutory allowance defined by the government because this is more favorable than the allowance defined by the collective agreement.

The severance allowance for a nondisciplinary or economic reasons is calculated by the earning IND LIC AFB.

See Also

Understanding Allowances

Severance Allowance Calculation

The bracket AFB BR IND LIC returns values used to calculate the severance allowance. Entitlement to this allowance depends on the reason for a payee's termination. Although there are many reason codes defined in the Human Resources application, only two confer entitlement to severance pay in the delivered bracket: INS (severance for insubordination) and RED (severance for staff reduction). If you want to add additional entitlement reasons, include the corresponding reason codes in this bracket.

The retirement allowance IND LIC AFB is triggered by the generation control element AFB GC IND LIC CC. This generation control element contains the actions or reasons that entitle a payee to the retirement allowance. The reasons listed in this generation control element must be the same as the reasons used as search keys in the bracket AFB BR IND LIC.

You must maintain the generation control element by populating it with whatever actions or reasons are required.

Severance Allowance for Nondisciplinary Dismissal

This table lists the parameters that are used for calculating severance allowances:

	Managers	Technicians
Seniority required.	The payee must have one year of seniority to have severance allowance.	Same as managers.
Base for calculation.	Base = 1/13 of the annual basic salary the payee had or would have had during the last 12 months.	Same as managers.
Semester calculation.	The entitlements must be calculated for two periods as follows: The semester must be complete. From 15/09/2002 to 15/03/2003 is a complete semester. From 16/09/2002 to 15/03/2003 is not a complete semester. In case of unpaid absences, the length of service must be reduced for the corresponding calendar days. If the semester goes past 01/01/2002, the semester is a complete semester, and the corresponding allowance is calculated in two parts: the part corresponding to the period before 01/01/2002 and the part from 01/01/2002 and onward.	Same as managers.
Semester completed before 01/01/2002.	½ x (13/14,50) for each semester completed before this date. This value is retrieved by the variable AFB VR TX LIC < 02.	Same as managers.
Semester completed after 01/01/2002.	1/5 for each semester completed starting from this date. This value is retrieved by the variable AFB VR TX LIC > O2.	Same as managers.
Ceilings.	The ceiling is the upper limit for the two-semester sum; the ceiling varies with the hire date. In case of part-time periods, the ceiling is calculated in proportion to the time worked.	Same as managers.
Hired before 12/31/1999.	24 x (13 / 14,50) = 21,51724 This value is retrieved by the variable AFB VR LIMIT CADR.	18 x (13 / 14,50) = 16,13793 This value is retrieved by the variable AFB VR LIMIT TECH.
Hired from 01/01/2000.	15 This value is retrieved by the variable AFB VR LIMIT > O2.	Same as managers.
Severance allowance amount.	Base for calculation x semester number. Part-time periods must be included in the calculation. Part-time periods must be considered before 01/01/2002 and from 01/01/2002 and onward.	Same as managers.

The payee classification—manager or technician—triggers the correct ceiling for severance allowances paid before 2002. The formula SIT FM CLASSIF AFB stores the value 0 if the payee is a technician and 1 if the payee is a manager. Because PeopleSoft does not know how and where companies store the payee's category, you must update the formula.

Severance Allowance in Case of (Economic) Redundancy

This table lists the parameters that are used for calculating severance allowances:

	Managers	Technicians
Seniority required.	The payee must have one year of seniority to receive severance allowance.	Same as managers.
Base for calculation.	Base = 1/12 of the annual basic salary the payee had or would have had during the last 12 months. In case of an incomplete year, the annual salary must be rebuilt.	Same as managers.
Semester calculation.	The entitlements must be calculated for two periods as follows: The semester must be complete. From 15/09/2002 to 15/03/2003 is a complete semester, and from 16/09/2002 to 15/03/2003 is not a complete semester. In case of unpaid absences, the length of service must be reduced for the corresponding calendar days. If a semester goes past 01/01/2002, the semester is a complete semester and the corresponding allowance is calculated in two parts: the part corresponding to the period before 01/01/2002 and the part from 01/01/2002 and onward.	Same as managers.
Semester completed before 01/01/2002.	½ x Base for each semester completed before this date. This value is retrieved by the variable AFB VR TX LIC < O2.	Same as managers.
Semester completed after 01/01/2002.	¼ x Base x Base for each semester completed starting from this date. This value is retrieved by the variable AFB VR TX LIC > O2.	Same as managers.
Ceilings.	The ceiling is the upper limit for the two-semester sum; the ceiling varies with the hire date. In case of part-time periods, the ceiling is calculated in proportion to the time worked.	Same as managers.
Hired before 12/31/1999.	24 This value is retrieved by the variable AFB VR LIMIT CADR.	18 This value is retrieved by the variable AFB VR LIMIT TECH.
Hired from 01/01/2000.	18 This value is retrieved by the variable AFB VR LIMIT > O2.	Same as managers.
Severance allowance amount.	Base for calculation x semester number. Part-time periods must be included in the calculation. Part-time periods must be considered before 01/01/2002 and from 01/01/2002 and onward.	Same as managers.

Bracket for AFB Labor Agreement Severance Allowance

The search key in the bracket AFB BR IND LIC is GEN VR MOTIF (severance reason), and the return column elements are the bracket AFB BR IND LIC and the variables AFB VR LIMIT TECH, AFB VR LIMIT CADR, AFB VR LIMIT > 02, AFB VR TX LIC < 02, AFB VR TX LIC > 02, and GEN VR IND LIC CC.

This table describes the return column elements:

Element Name	Usage
AFB VR LIMIT TECH	Stores the entitlement limit used in the severance allowance calculation for banking technicians.
AFB VR LIMIT CADR	Stores the entitlement limit used in the severance allowance calculation for banking managers.
AFB VR LIMIT > 02	Stores the entitlement limit for all payee categories after 2002.
AFB VR TX LIC < 02	Stores the rate used to calculate the severance allowance before 2002.
AFB VR TX LIC > 02	Stores the rate used to calculate the severance allowance after 2002.
AFB BR IND LIC	Stores the multiplier applied to the annual salary (1 for a nondisciplinary reason and 13/12 for an economic reason).
GEN VR IND LIC CC	Stores an indicator with the value of 1 if the severance allowance defined by the collective agreement is resolved. This variable is checked to avoid the payment of the legal severance allowance if the labor agreement severance allowance has already been paid.

This table shows the sample values of the return column elements:

GEN VR MOTIF (Key)	AFB BR IND LIC (Return)	AFB VR LIMIT TECH (Variable)	AFB VR LIMIT CADR (Variable)	AFB VR LIMIT > 02 (Variable)	AFB VR TX LIC < 02 (Variable)	AFB VR TX LIC > 02 (Variable)	GEN VR IND LIC CC (Variable)
INS	1	21,517241	16,137931	15	0,448275	0,2	1
RED	1,083333	24	18	18	0,5	0,25	1

It is important that you understand the definition of this bracket because PeopleSoft delivers, but does not maintain, it. You must maintain this bracket to ensure that it functions properly.

If your organization applies the AFB collective agreement, use the sample values in this bracket and in the AFB BR IND DEP RET bracket to manage severance and retirement allowances. If you have a collective agreement other than AFB, don't use these brackets.

If you are applying the AFB collective agreement, and the agreement uses different values to calculate the allowance, you may need to change the parameters of the brackets, but you do not need to create any new brackets for this allowance.

Note. If you use the AFB BR IND LIC bracket, make sure that the return column variable GEN VR IND LIC CC is set to 1. This variable tells the system that the allowances are being calculated using a labor agreement bracket and should not be calculated again based on the legal setup.

See Also

Defining Bracket Elements

Defining Variable Elements

Seniority and 2002

The entitlement used to calculate severance allowance changed in 2002. The previous seniority values were frozen at the end of 2001, so the formula containing payee classifications automatically switched to a new effective date and calculated the new entitlements when the changes were introduced.

The HR files do not tell you if a person is classified as a technician or a manager. The formula SIT FM CLASSIF AFB stores the value 0 if the payee is a technician and 1 if the payee is a manager.

Note. The system used the formula SIT FM CLASSIF AFB until the end of 2001, and currently uses the formula for retro calculations. For calculating allowances in 2002 and onwards, the system does not use this formula.

You must maintain this formula, which needs to be populated so that it can retrieve a value for the payee's category. By default, the value in the formula is set to 0. This means that if the formula is not updated, it retrieves values for technicians only.

AFB Retirement Allowances

This section discusses:

Retirement allowance entitlement.
Retirement allowance calculation.

Retirement Allowance Entitlement

The AFB labor agreement defines entitlement to the retirement allowance. In cases of voluntary retirement, the allowance defined by the collective agreement supersedes the one defined by law. In cases of compulsory retirement, the legal retirement allowance supersedes the allowance defined by the labor agreement. The earning used to calculate the retirement allowance for AFB is IND DRET AFB.

Retirement Allowance Calculation

The bracket AFB BR IND LIC returns values used to calculate the retirement allowance. Entitlement to this allowance depends on the reason for a payee's retirement. Although there are many reason codes defined in the Human Resources application, only one confers entitlement to retirement pay in the delivered bracket: VRE (retirement for voluntary reasons). If you want to add additional entitlement reasons, include the corresponding reason codes in this bracket.

The retirement allowance IND DRET AFB is triggered by the generation control element AFB GC IND DRET CC. This generation control element contains the actions or reasons that entitle a payee to the retirement allowance. The reasons listed in this generation control element must be the same as the reasons used as search keys in the bracket AFB BR IND DEP RET.

You must maintain the generation control element by populating it with whatever actions or reasons are required.

Bracket for AFB Labor Agreement Retirement Allowance Parameters

The search keys for the bracket AFB BR IND DEP RET are GEN VR MOTIF (the retirement reason) and GEN VR AN ANC CONT (the number of years of seniority), and the return column elements are the bracket AFB BR IND DEP RET and the variable GEN VR IND RET CC.

This table describes the return column elements:

Element Name	Usage
AFB BR IND LIC	The bracket AFB BR IND LIC resolves to the calculation rate, which is applied to the average salary of the last 12 months.
GEN VR IND RET CC	Stores an indicator with the value of 1 if the retirement allowance defined by the collective agreement is resolved. This variable is checked to avoid payment of the legal retirement allowance if the labor agreement retirement allowance has already been paid.

This table shows the sample values of the return column elements:

GEN VR MOTIF (Key)	GEN VR AN ANC (Key)	AFB BR IND DEP RET (Return)	GEN VR IND RET CC (Variable)
VRE	10	0,666666	1
VRE	15	1,25	1
VRE	20	2	1
VRE	30	2,5	1

It is important that you understand the definition of this bracket because PeopleSoft delivers, but does not maintain, it. You must maintain this bracket to ensure that it functions properly.

If your organization applies the AFB collective agreement, use the sample values in this bracket and in the AFB BR IND LIC bracket to manage severance and retirement allowances. If you have a collective agreement other than AFB, don't use these brackets.

Note. If you use the AFB BR IND DEP RET bracket, make sure that the variable GEN VR IND RET CC is set to 1. This variable, along with variable GEN VR IND LIC CC in the bracket AFB BR IND LIC, tells the system that the allowances are being calculated using a labor agreement bracket and should not be calculated again based on the legal setup.

See Also

Defining Bracket Elements

Defining Variable Elements