Setting Up Termination Versions

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

This topic provides an overview of termination versions and discusses how to define termination versions.

Page Name

Definition Name

Usage

Termination Versions Page

GPBR_TERM_ACTN_RSN

Define termination versions and the qualifying actions and reasons for triggering termination pay.

Earnings/Deductions Page

GPBR_TERM_VERSION

Associate earnings and deductions with a corresponding termination version.

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:

  1. Define your termination versions on the Termination Versions page.

  2. 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.

  3. On the Earning/Deductions page, associate each earning or deduction with a corresponding termination version.

  4. On the Job Data pages in PeopleSoft HR, specify termination actions such as Termination, 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.

Labor Reform Update

On November 11, 2017, new labor rules on terminations were implemented as part of the Labor Reform. Under the new reform, employment contracts may be terminated at any time by the mutual consent of employers and employees. In the event that a mutually-agreed termination takes place, the employee is subject to reduced prior notice indemnification and FGTS, specifically:

  • Half of the prior notice value, if indemnified.

  • Half of the indemnification amount on the balance of the FGTS, in case of dismissal by the employer without just cause.

  • Full of other labor sums.

With this type of termination, the employee is allowed to move up to 80% of the deposit value of his or her linked account in the FGTS. It does not, however, authorize receipt of unemployment insurance for the employee.

To support terminations by common agreement, Global Payroll for Brazil:

  • Delivers a new termination reason (Termination by Common Agreemen) in the Termination Reason drop-down field and a new GRRF code (Term by Common Agreement) in the GRRF CODE drop-down field for customers to define their own termination versions.

    Note: As a customer, you need to create a new reason for the TER (Termination) action on the Action Reasons Page. Then, create a new or update an existing termination version using these three values to support this termination type.

    See Termination Versions Page

  • Updates elements and rules for payment of this termination type to be processed correctly.

    • AVISO PRE IN - the new value is 50% of the total amount calculated.

    • IND COM-FGTS - the new value is 50% of the total amount calculated.

    Note: As a customer, you need to update the RC FM FERIAS PROP formula (which is used to calculate the FERIAS AV IN element) to include the new reason that you created for the termination action. The new reason populates the RC VR RAZAO BAIXA variable when an employee is terminated in the Job Data component.

    To update the RC FM FERIAS PROP formula, access the Field-by-Field Definition Page and navigate to row 38. From the Field-by-Field Area section, select Character in the Entry Type 2 field, and enter your newly created action reason code in the Character Value 2 field. Save the changes and click the Validate button to validate the formula. Then, access the Text Definition Page and view the formula text line by line. Verify that your new action reason code is displayed in line 38.

  • Updates the Termination Contract (TRCT) report to display appropriate values.

    See Legal Codes by Process Type BRA Page and Legal Codes by Action Reason BRA Page

  • Updates the CAGED run control page to support the Termination by Common Agreement type, and the CAGED report to display the corresponding information, if configured.

    See CAGED File/Report BRA Page

  • Updates the GRRF report to display appropriate values.

  • Updates the SEFIP report to display appropriate values.

  • Adds movement legal codes to associate with termination action and reason combinations for use in SEFIP reporting.

    See Legal Movement Codes BRA Page

Use the Termination Versions page (GPBR_TERM_ACTN_RSN) to define termination versions and the qualifying actions and reasons for triggering termination pay.

Navigation:

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Terminations > Termination Version Setup BRA > Termination Versions

This example illustrates the fields and controls on the Termination Versions page.

Termination Versions page

Note: (For terminations by common agreement) Global Payroll for Brazil delivers a termination reason (Termination by Common Agreement) and GRRF code (Term by Common Agreement) to support terminations that are mutually agreed by employers and employees.

Field or Control

Description

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.

Field or Control

Description

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 (Terminated with Pay)

Reason

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), BNK (Employer Bankruptcy), CDE (Closing Down of Establishment), CHI (Child/House Care), CIT (Completion of Int Cpny Trans), 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), FRE (End Foreign Employment AUS), 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), OBS (Become Self-Employed), OTP (Resignation-Other Position), PAB (Payee's Anticipated Breach), PAY (Dissatisfied with Pay), PCD (Premises Closed), PER (Personal Reasons), PIT (Permanent Int Cpny Transfer), 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 (Unforeseen 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

Select an applicable termination reason. This information is used in some Brazilian reports (such as GRFC).

GRRF CODE

Select a GRRF code for the specified action and reason combination, if applicable.

Values are:

Contract Termination

Mutual Fault/Force Majeure

Not Applicable (default)

Other Termination Reasons

Term Domestic Payee Unfair

Term Employer Decision Unfair

Term by Common Agreement

Use the Earnings/Deductions page (GPBR_TERM_VERSION) to associate earnings and deductions with a corresponding termination version.

Navigation:

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Terminations > Termination Version Setup BRA > Earnings/Deductions

This example illustrates the fields and controls on the Earnings/Deductions page.

Earnings/Deductions page

Field or Control

Description

Entry Type

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

Element Name

Select the element to associate with this termination version.