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.

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

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

This topic 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.

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.

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).

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.

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 the PeopleSoft Global Payroll product documentation.