Professionalization Contracts

PeopleSoft Global Payroll for France doesn't provide rules for calculating compensation for payees with professionalization contracts; however, PeopleSoft does provide rules to manage minimum wage levels, social security contribution exemptions, and other conditions related to the professionalization contract.

This section provides an overview of the professionalization contract and discusses elements used to define professionalization contract rules.

PeopleSoft Global Payroll for France delivers a number of rules to manage minimum salary requirements and contribution exemptions for payees with professionalization contracts, including:

  • Minimum wage controls: Global Payroll for France controls that payee compensation falls within the statutory minimum wage (SMIC) based on age and educational level. For example, if an employee is under 21 and doesn't have a professional baccalaureate, he/she qualifies for at least 55% of the SMIC. And if the employee is under 21 and has, at a minimum, a professional baccalaureate degree, he/she qualifies for at least 65% of the SMIC.

  • Contribution exemptions: Global Payroll for France delivers two social security scheme codes—code 456 and code 457 (for Alsace Moselle)—to manage contribution exemptions. To view the rates and percentages associated with these schemes, access the URSSAF Rates and URSSAF Additional Setup pages.

    Note: Contribution exemptions associated with the professionalization contract apply only to the portion of the salary that falls within the SMIC.

    Note: To trigger the contribution exemptions associated with these social security codes, specify CDP (limited professionalization contract) or CPI (unlimited professionalization contract) as the contract type on the Contract Type/Clauses page in PeopleSoft HR, and then enter either code 465 or 457 in the Social Security Code field for each qualified payee.

    See Understanding URSSAF Contributions.

  • Limitation on benefits in kind:

    Benefits in kind cannot constitute more than 75% of the minimum wage. In other words, employees with professionalization contracts must receive at least 25% of their compensation in monetary form.

  • Warning messages to enforce age limits for assigning professionalization contracts.

    The system generates a warning message if a social security code for professionalization contracts is assigned to an employee who is 25 years of age or over and below 45.

  • Warnings to prevent exemptions from extending beyond the contract end date.

    At the end of the professionalization period in an unlimited contract, the specific compensation rules and social security exemptions associated with the contract must be stopped and the payee can then continue employment under a new social security scheme. To prevent the conditions of the professionalization period from extending beyond the contract end date, Global Payroll for France issues a warning to the user to assign payees to a new social security scheme. This warning is generated when the current pay period end date exceeds the contract end date.

    Note: In the case of a limited professionalization contract, the payee cannot continue working under a new contract when the contract ends.

Note: All rules related to the professionalization contract have an effective date of 1 October 2004.

Note: The professionalization contract replaces the qualification, orientation, and adaptation contract rules delivered in earlier versions of Global Payroll for France.

This section discusses:

  • Delivered elements for minimum wage (SMIC) controls.

  • Delivered elements to limit benefits in kind.

  • Delivered elements to generate age limit warnings.

  • Delivered elements to prevent overextension of the professionalization contract.

Delivered Elements for Minimum Wage (SMIC) Controls

The percentage of the minimum wage (SMIC) that a payee is entitled to receive varies by age and educational level.

PeopleSoft delivers the bracket GEN BR SMIC PROF to return the applicable SMIC percentage based on age.

PeopleSoft delivers the bracket GEN BR NIVEAU ETUD to return an additional SMIC percentage based on educational level.

Note: You should review the information in this bracket and, if necessary, modify the additional SMIC percentage based on educational level to reflect the rules in effect in your organization.

The system adds the percentages returned by these brackets to calculate the minimum percentage that the payee should receive.

See Brackets for Professionalization Contract Minimum Wage (SMIC) Controls.

Delivered Elements to Limit Benefits in Kind

PeopleSoft delivers a variable—IND VR AN COEF—to store the maximum percentage of a payee's compensation that can be comprised of benefits in kind. The value of this variable is set to .75 by the formula APP FM INIT for all payees with a professionalization contract.

PeopleSoft uses the formula APP FM BASE to put payments in error when the percentage of a payee's compensation consisting of payments in kind exceeds 75%. It does this by adding all payments in kind, and then dividing the resulting sum by all payments in kind plus any monetary compensation stored in the accumulator APP AC SAL ESP SG. If the resulting quotient is greater than .75, the formula puts the payment in error.

Delivered Elements to Generate Age Limit Warnings

PeopleSoft uses the formula APP FM INIT to generate a warning message when a payee 26 years of age or older and less than age 45 has been granted a professionalization contract. This message appears in the Payee Messages component.

Delivered Elements to Prevent Overextension of the Professionalization Contract

PeopleSoft delivers the formula GEN FM DT FIN PROF to prevent the conditions of the professionalization period from extending beyond the contract end date. This formula compares the value of the system element CONTRACT EX END DT — which contains the expected contract end date from the Contract Status/Content page — to the current date. If the two dates are not equal, and the segment end date for the calculation period is greater than the expected contract end date, the formula assigns a value of 1 (true) to the variable GEN VR FIN CT PROF. Otherwise, the value of the variable is 0 (false).

The value of this variable (GEN VR FIN CT PROF) is then "read" by a second formula, APP FM INIT. This formula determines if the variable is equal to 1 (true). If so, it generates a warning message that the professionalization contract should be terminated.

Important! By default, the value of the system element CONTRACT EX END DT is the same as the expected end date specified on the Contract Status/Content page. If the end date on Contract Status/Content page is incorrect, you can override the value of the system element with the correct end date. To do this, enter positive input at the payee level.