PeopleSoft Global Payroll for the United Kingdom 9.1 PeopleBook

Defining Absence Rules

This chapter provides an overview of absence schemes and discusses how to:

Set up statutory sick pay.
Set up absence reasons.
Set up occupational schemes.

Understanding Absence Schemes

Global Payroll for the UK provides you with all the elements required to process these statutory absences:

Statutory sick pay (SSP).
Statutory maternity pay (SMP).
Statutory adoption pay (SAP).
Statutory paternity pay (SPP).

You can use the absence management features in the Global Payroll core application to create your own absence schemes, such as for holidays. UK statutory holiday entitlement has no monetary impact on payroll; it is therefore a human resources issue and is not delivered as a standard template by Global Payroll for the UK You can also create occupational schemes that supplement the statutory absence leave and pay.

See Also

Defining Absence Elements

Setting Up Occupational Schemes

Delivered Absence Takes and Entitlements

This table lists the delivered absence takes and entitlements:

Absence Take	Absence Entitlement	Description
SMP AT1	SMP AE1	Statutory maternity pay before 6 April 2003
SMP AT2	SMP AE2	Statutory maternity pay from 6 April 2003
SAP AT	SAP AE	Statutory adoption pay
SPPB AT	SPPB AE	Statutory paternity pay (birth)
SPPA AT	SPPA AE	Statutory paternity pay (adoption)
SSP AT1	SSP AE1	Statutory sick pay
OMP AT1	OMP AE1 OMP AE2	Occupational maternity pay
OSP AT1	OSP AE1 OSP AE2	Occupational sick pay

Delivered Absence Earnings

This table lists the delivered absence earnings for the U.K:

Name/Description	Unit	Rate	Base	%	Amount
SAP ER PAY SAP pay	Payee Level	Payee Level	N/A	N/A	N/A
SAP ER OFF SAP pay offset	Payee Level	Payee Level	N/A	N/A	N/A
SSP ER PAY SSP pay	Payee Level	100	N/A	Payee Level	N/A
SSP ER P OFF SSP pay offset	Payee Level	GBR FM MINUS ONE	N/A	N/A	N/A
SMP ER PAY1 SMP pay higher rate	Payee Level	Payee Level	N/A	100	N/A
SMP ER PAY2 SMP pay lower rate	Payee Level	Payee Level	N/A	100	N/A
SMP ER P OFF SMP pay offset	Payee Level	Payee Level	N/A	N/A	N/A
SPPA ER PAY SPP (adoption) pay	Payee Level	Payee Level	N/A	N/A	N/A
SPPA ER OFF SPP (adoption) pay offset	Payee Level	Payee Level	N/A	N/A	N/A
SPPB ER PAY SPP (birth) pay	Payee Level	Payee Level	N/A	N/A	N/A
SPPB ER OFF SPP (birth) pay offset	Payee Level	Payee Level	N/A	N/A	N/A
OMP ER P1 OF OMP pay offset	Payee Level	GBR FM MINUS ONE	N/A	N/A	N/A
OMP ER PAY1 OMP pay full-pay	Payee Level	100	N/A	Payee Level	N/A
OMP ER PAY2 OMP pay half-pay	Payee Level	100	N/A	Payee Level	N/A
OSP ER OFFST OSP offset	N/A	N/A	N/A	N/A	OSP FM OFFST
OSP ER P OFF OSP pay offset	Payee Level	GBR FM MINUS ONE	N/A	N/A	N/A
OSP ER PAY1 OSP pay full-pay	Payee Level	100	N/A	Payee Level	N/A
OSP ER PAY2 OSP pay half-pay	Payee Level	100	N/A	Payee Level	N/A

Delivered Supporting Elements

This section discusses:

Formulas for SSP.
Formulas for SMP and SAP.
Formulas for SPP.

Formulas for SSP

This table describes the day formula and formulas for checking PIW and waiting days:

Formula	Description
SSP FM MIN ABSENCE	Determines whether an absence entry qualifies as a PIW (4 or more consecutive calendar days). This formula is resolved once per absence entry.
SSP FM WAIT DAYS	Calculates the number of remaining days of absence before the waiting days requirement is met.
SSP FM DAY	The day formula is resolved for each day of an absence entry. SSP FM DAY determines whether the employee is disqualified for SSP. It calls the formula SSP FM DISQUALIFY that checks certain conditions: Employee not on maternity leave. Absence not caused by pregnancy-related illness within 4 weeks of the EWC. PIW does not span more than 3 years. Employee not terminated. Disqualification date in absence entry.

This table describes the main formulas used to process the SSP entitlement:

Formula	Description
SSP FM COND ENT	The conditional resolution formula is resolved once per absence entry. It checks employee's eligibility. This formula calls the formula SSP FM ENTITLED. If the employee is not eligible for paid leave, the system creates an absence entry of unpaid. No earning is generated.
SSP FM ENTITLED	This formula calls the following formulas to determine if the employee meets criteria for SSP: SSP FM HR ENTITLED checks whether the employee is aged 16 or over, and under 65. SSP FM EARNINGS determines whether the employee's average earnings are at or above the LEL. SSP FM USER COND is for company-specific SSP criteria. For example, if you have criteria for notification of absence that employee's must meet to qualify for SSP, use SSP FM USER COND to check for this condition.

Formula

Description

SSP FM COND ENT

The conditional resolution formula is resolved once per absence entry. It checks employee's eligibility. This formula calls the formula SSP FM ENTITLED.

If the employee is not eligible for paid leave, the system creates an absence entry of unpaid. No earning is generated.

SSP FM ENTITLED

This formula calls the following formulas to determine if the employee meets criteria for SSP:

SSP FM HR ENTITLED checks whether the employee is aged 16 or over, and under 65.
SSP FM EARNINGS determines whether the employee's average earnings are at or above the LEL.
SSP FM USER COND is for company-specific SSP criteria. For example, if you have criteria for notification of absence that employee's must meet to qualify for SSP, use SSP FM USER COND to check for this condition.

Formulas for SMP and SAP

This table describes the day formulas for SMP and SAP:

Formula	Description
SMP FM DAY2	The day formula is resolved for each day of an absence entry. However, SMP is paid weekly, not daily, and employees must be absent for 7 consecutive days to be eligible for SMP. The day formula, SMP FM DAY2, therefore resolves to true after a 7 day period. If an employee returns to work for a part of a week, SMP is not paid and the system doesn't generate SMP earnings for that week.
SAP FM DAY	The day formula is resolved for each day of an absence entry. However, SAP is paid weekly, not daily, and employees must be absent for 7 consecutive days to be eligible for SAP. The day formula, SAP FM DAY, therefore resolves to true after a 7-day period. If an employee returns to work for a part of a week, SAP is not paid and the system doesn't generate SAP earnings for that week.

This table describes the main formulas used to process the SMP and SAP entitlement elements:

Formula	Description
SMP FM COND ENT	The conditional resolution formula is resolved once per absence entry to determine the employee's eligibility. The formula checks: Average earnings compared to the LEL. HR maternity information. If the employee is not eligible for paid leave, the system creates an absence entry of unpaid. No earning is generated.
SMP FM ENT WEEKS	The entitlement formula is resolved once per absence. It calculates the initial entitlement or adjusts entitlement if there has been a break in maternity leave and the employee returns to work for a period. If the employee has entitlement remaining when you run the payroll process, it generates earning SMP ER PAY1 or SMP ER PAY2.
SAP FM COND ENT	Checks employee's eligibility for SAP. This formula checks average earnings. If the employee is not eligible for paid leave, the system creates an absence entry of unpaid. No earning is generated.
SAP FM ENT CALC	Calculates the initial entitlement or adjusts entitlement if there has been a break in adoption leave and the employee returns to work for a period. If the employee has entitlement remaining, when you run the payroll process, it generates earning SAP ER PAY.

Formulas for SPP

This table describes the day formula for SPP (birth) and SPP (adoption):

Formula	Description
SPP FM DAY	The day formula, SPP FM DAY, resolves to true after a 7-day period because SPP is a weekly payment. Employees must be absent for 7 consecutive days to be eligible for SPP. If an employee returns to work for a part of a week, SPP is not paid and the system doesn't generate an earning for the absence.

Formula

Description

SPP FM DAY

The day formula, SPP FM DAY, resolves to true after a 7-day period because SPP is a weekly payment. Employees must be absent for 7 consecutive days to be eligible for SPP.

If an employee returns to work for a part of a week, SPP is not paid and the system doesn't generate an earning for the absence.

This table describes the main formulas used to process the SPPB and SPPA entitlement elements:

Formula	Description
SPPB FM COND ENT SPPA FM COND ENT	Checks employee's eligibility for SPP. This formula compares the employee's average earnings with the LEL. If the employee is not eligible for paid leave, the system creates an absence entry of unpaid. No earning is generated.
SPPB FM ENT CALC SPPA FM ENT CALC	Calculates the initial entitlement. If the employee has entitlement remaining, when you run the payroll process, it generates the earning SPPB ER PAY for SPP (birth) or SPPB ER PAY for SPP (adoption).

Formula

Description

SPPB FM COND ENT

SPPA FM COND ENT

Checks employee's eligibility for SPP. This formula compares the employee's average earnings with the LEL.

If the employee is not eligible for paid leave, the system creates an absence entry of unpaid. No earning is generated.

SPPB FM ENT CALC

SPPA FM ENT CALC

Calculates the initial entitlement. If the employee has entitlement remaining, when you run the payroll process, it generates the earning SPPB ER PAY for SPP (birth) or SPPB ER PAY for SPP (adoption).

Process Lists and Sections

Global Payroll for the UK delivers the process list, GBR PR ABSENCE, for processing absences. This table lists the sections in this process list that are required for processing statutory absence:

Section	Description
GBR SE ABS SETUP	This section is similar to the setup section for payroll, GBR SE SETUP. It includes elements that store information such as employee statutory details, the run type, and other calendar information. This section must be first in the absence process list.
SMP SE BRACKET	Includes one element, the bracket SMP BR STAT RATE, which stores the rates for SMP. This section is required for processing SMP and must appear in the process list before the sections SMP SE1 or SMP SE2.
SMP SE1	Processes the absence take SMP AT1 that was used for SMP prior to 6 April 2003.
SMP SE2	Processes the absence take SMP AT2. Use this section for SMP after 6 April 2003.
SSP SE1	Processes the absence take SSP AT1.
SPP SE	Processes the absence takes SPPA AT and SPPB AT.
SAP SE	Processes the absence take SAP AT.
GBR SE POSTABSENCE	This section contains the writable array GBR WA EE RSLT that writes the results of the absence processing to the UK results table. This section must be the last section in the absence process list.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in PeopleSoft Global Payroll 9.1 PeopleBook.

Common Elements Used in This Chapter

SSP (statutory sick pay)	The minimum level of sick pay that you must pay to most employees who are absent from work due to sickness for four or more calendar days in a row.
SMP (statutory maternity pay)	The minimum level of maternity pay to most employees who are absent from work to have a baby. SMP is a weekly payment, and the payment is made in multiples of weeks, regardless of the frequency with which the employee is usually paid. SMP is sometimes paid in a lump sum at the start of the maternity leave period. SMP applies to whole weeks starting on a Sunday through to Saturday. If the employee is ineligible for even one day during a week, then no payment is made for that week.
SAP (statutory adoption pay)	The minimum level of adoption pay that you must pay to employees who are absent from work after adopting a child.
SPP (statutory paternity pay)	The minimum level of paternity pay that you must pay to employees. There are two types of paternity pay: SPP (birth) is paid to employees who are absent from work to care for a baby or support the mother in the first few weeks after the birth. SPP (adoption) is paid to employees who are jointly adopting a child with their partner, or whose partners are adopting a child.
EWC (expected week of childbirth)	The week when an employee's baby is due. This date is always the Sunday of the week in which the baby is due.
MW (matching week)	The week when an employee is notified by the adoption agency that he or she is matched with a child.
QW (qualifying week)	The fifteenth week before the EWC.
PIW (period of incapacity for work)	To qualify for SSP, an employee must be absent due to sickness for four consecutive calendar days or more.
APP (adoption pay period)	The period during which SAP can be paid. The APP can start on the date that the child is placed or up to two weeks prior to the expected placement date.
MPP (maternity pay period)	The period during which SMP can be paid. The MPP can start between the eleventh week before the EWC and the Sunday following the birth. The start of the MPP is affected if the employee is absent with a pregnancy-related illness during the four-week period before the EWC or if the child is born early.
PPP (paternity pay period)	The period during which SPP can be paid. PPP can start only after the birth of the child or after the child is placed with the adopter.
OSP (occupational sick pay)	Employers can opt out of paying SSP and provide employees with sick pay, which is at least equal to the statutory sick pay entitlement.
OMP (occupational maternity pay)	Employers can opt out of paying SMP and provide employees with occupational maternity pay, which is at least equal to the statutory maternity pay entitlement.

Setting Up Statutory Sick Pay

Statutory sick pay (SSP) is only paid to employees for qualifying days. Typically, qualifying days are the days that the employee works. However, some companies may agree with their employees qualifying days that differ from actual working days. For this reason, you need to define work schedules specifically for SSP processing. These SSP schedules are assigned to the alternate work schedule.

Alternate work schedules are specified on the Pay Group Name page, but can be overridden at the payee level.

To set up work schedules for SSP:

Create schedule definitions using the delivered SSP workdays.

We deliver definitions for the shifts and workdays for one to seven qualifying days per week. Use the Schedule Definition component to define the schedules. Navigate to this component as follows: Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Schedules, Definitions.
Assign these SSP work schedules to pay groups and payees.

Assign the SSP schedule to a pay group on the Pay Group Name page. Navigate to the pay group definition as follows: Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Groups, Pay Group Name. Select the SSP schedule ID in the Alternate Schedule ID field.

You can override the alternate work schedule at payee level using the Assign Schedule page (Global Payroll & Absence Mgmt, Payee Data, Create Overrides, Assign Work Schedule). Use the Alternate Details tab to override the pay group default.

See Also

Using Schedules

Defining Pay Group Parameters

Assigning Work Schedules

Setting Up Absence Reasons

To define absence reasons, use the Absence Reasons GBR component (GPGB_ABS_TYPE). This section discusses how to define absence reasons.

Page Used to Define Absence Reasons

Page Name	Definition Name	Navigation	Usage
Absence Reasons GBR	GPGB_ABS_TYPE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Absence Elements, Absence Reasons GBR, Absence Reasons GBR	Define an absence type and enter absence codes that further define the absence. For example, if you have an employee who is absent from work due to sickness, record the type of sickness: flu, stomach bug, and so on.

Defining Absence Reasons

Access the Absence Reasons GBR page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Absence Elements, Absence Reasons GBR, Absence Reasons GBR).

Absence Type

Displays the name of the Absence Type that you enter.

Absence Codes

Absence Code

Enter any Absence Code that further defines the Absence Type that you create.

Note. Absence reasons are not required for processing statutory absence.

Setting Up Occupational Schemes

PeopleSoft delivers all the elements required to record and process statutory absences. However, many organizations in the UK have their own company schemes that pay employees absence pay and leave that exceeds the statutory minimum. This section discusses:

Absence mapping.
Designing occupational schemes.

Understanding Absence Mapping

To create an occupational scheme, you can use the mapping functionality provided in the core application to tie company absence takes to the delivered statutory absence takes. Mapping enables you to:

Create one absence entry, but process the statutory absence take and company-specific absence take together.
Track statutory absence pay and leave separate from the occupational absence pay and leave.

Define mapping on the Day Formula page in the Absence Take component. When the system processes absences that are mapped, it:

Creates separate rows in absence data for each absence take.
Checks and updates the entitlement balance for each absence take.
Generates separate earnings (according to the element definitions).

This makes it easy to distinguish the statutory pay and entitlement balance from the occupational pay and entitlement balance. Using mapping, companies that provide their own occupational schemes can track the statutory absence pay if they reclaim the statutory amount (or a percentage of the statutory amount) from HM Revenue and Customs (HMRC).

This table lists the delivered absence mapping:

Statutory Absence Take	Mapped to Absence Take
SSP AT1	OSP AT1

Note. The OSP and OMP elements that are delivered are simple examples only. In addition, the OMP AT1 element is not designed to work with the SMP AT2, which is the absence take that should be used for SMP after April 6, 2003.

Designing Occupational Schemes

To create an occupational scheme, you need to design and define:

Absence take

For absence takes, you need to consider how to define the following:
- Day Formula
  
  The day formula evaluates each day of an absence event to determine the units for the absence day.
- Wait days, minimum absence, or linking (if required).
  
  For statutory absences, wait days, minimum absence and linking only apply for SSP. Depending on your company terms and conditions, you may need to define formulas that check these criteria.
Absence entitlement

You need to consider the following:
- Entitlement type (per-absence or frequency based). The UK statutory absence entitlements are defined as per-absence entitlements. However, you may have a requirement for a frequency-based entitlement if employees accrue their entitlement or entitlement is for a fixed period per year.
- Conditional resolution formula
  
  This formula is required for per-absence entitlements to determine eligibility for paid absence.
- Entitlement formula
  
  This formula determines the employee's entitlement balance.
Absence earning
Mapping

You can implement mapping in one of two ways:
- By mapping the occupational absence take to the statutory absence take.
- By mapping the statutory absence take to the occupational absence take.
Organizational and processing framework.

PeopleSoft delivers a processing framework as a template only. You can create your own process lists and sections or modify the delivered framework.

Warning! If you use mapping, you must ensure that your process lists are set up with the main absence take is processed before the mapped absence.