Understanding Terminations
The process used to trigger termination payments in Global Payroll for Brazil is based on the concept of a termination version. A termination version is a collection of actions and reasons that can trigger specific termination earnings and deductions. In Global Payroll for Brazil, both payees and termination earnings and deductions are associated with termination versions. When you define a termination earning or deduction, you link it to a termination version. At the same time, when you terminate a payee, the payee is automatically linked to the termination version that defaults from the termination action and the reason for his termination. In this way, the system can identify and process only those earnings and deductions associated with the same termination version.
Elements Used in the Termination Process
The following table identifies key elements of the termination process and explains how they work together to trigger termination pay:
|
Element |
Description |
|---|---|
|
RC VR IND PDV |
Delivered variable that, when numeric value = 1, indicates the termination occurred through the Voluntary Dismissal Program (PDV). This element will not be calculated automatically. It must be added for the terminated individual as supporting element override (for example, at the payee level) prior to the termination calculation. |
|
RC VR VER RESC EMP |
Delivered variable that contains the termination version (representing the termination action and reason) for a terminated payee. Note: Termination versions are defined on the Termination Versions page. |
|
RC VR RAZAO BAIXA |
Delivered variable that contains the termination reason. |
|
WORKFORCE_SYNC |
Service operation that enables the delivered Global Payroll variables RC VR VER RESC EMP and RC VR RAZAO BAIXA to be inserted in the supporting element override table at the payee level (thus associating a terminated payee with the termination version that applies to his or her termination). The handler and associated application class that inserts these variables is TERMINATION VERSION JOB. |
|
RC GC VER RESCIS |
Generation control element that determines whether earnings or deductions should be paid in response to a payee's termination. This element is based on the generation control formula RC FM VER RESCI GC. |
|
RC FM VER RESCI GC |
Formula that reads via an array element the earnings and deductions eligible for each termination version based on the setup pages. The system compares the earnings and deductions for the termination version to the processing earning/deduction; if it finds a match, that element (earning or deduction) is calculated for the employee's termination process. |
These elements are used to trigger termination pay, as outlined in the following steps:
When a payee is terminated or laid off and the appropriate action/reason codes are entered on the Job Data pages in PeopleSoft HR, the system uses the service operation WORKFORCE_SYNC to insert the Global Payroll variables RC VR VER RESC EMP (containing the termination version) and RC VR RAZAO BAIXA (containing the termination reason) as supporting element overrides at the payee level (). The Begin Date and End Date equal the Termination Date to ensure that the system processes termination earnings and deductions only in the correct segment.
In other words, the service operation links the payee to the termination version (the action and reason combination) that applies to his or her specific termination.
Note: The only actions capable of triggering the service operation used to insert the variables RC VR VER RESC EMP and RC VR RAZAO BAIXA in the supporting element override table at the payee level are TER (termination), LOF (layoff), and COM (completion).
Just as each terminated payee is linked to a termination version, each termination earning or deduction is linked to a termination version on the Termination Version Setup BRA - Earnings/Deductions page.
When a payee is terminated or laid off, Global Payroll for Brazil uses the generation control element RC GC VER RESCIS (in combination with the formula RC FM VER RESCI GC) to include in the employee's final payment only those earnings and deductions that are part of the same termination version associated with the payee in Step 1.
This is done by means of the following comparison:
When you run a payroll, the generation control element (which is linked to each delivered termination earning or deduction on the Calculation page of the Earning/Deduction Definition component) checks the payee's termination version, as represented by the variables RC VR VER RESC EMP (containing the termination version).
At the same time, the generation control element checks the termination versions associated with each delivered termination earning and deduction element via an array element that reads the Termination Version Setup BRA - Earnings/Deductions page.
If the payee's termination version (represented by the variables RC VR VER RESC EMP) has associated an earning or deduction than it can be processed.
Global Payroll for Brazil provides the ability to process compensated Saturday and indemnified DSR payments using two new earnings:
DSR SAB COM (compensated Saturday).
This earning pays an extra day of salary if the termination occurs on a Friday, and that Saturday is considered a compensation day in the employee’s work schedule.
DSR INDENIZ (indemnified DSR).
This earning pays an extra day of salary for the weekly rest day that is granted to the employee after a whole week of work (Monday through Friday or Saturday).
To set up DSR SAB COM and DSR INDENIZ for payroll:
Add DSR SAB COM and DSR INDENIZ to the corresponding termination versions on the Earnings/Deductions Page.
Update bracket RC BR DSR ABS TYPE (Absences' Types for indem DSR) on the Bracket Data page to specify absence types that are considered not worked and therefore should not be considered for DSR SAB COM and DSR INDENIZ payments. List the absence types and specify 1 as the return value (which stands for true).
Update bracket FP BR DIA COMPENS (Compensated day-off) on the Bracket Data page to include compensated Saturday, so that DSR SAB COM and DSR INDENIZ payments can be processed accordingly. Add KR SABCOM and specify 1 as the return value.
Add DSR SAB COM and DSR INDENIZ to the corresponding accumulators on the Members Page.
Add DSR SAB COM and DSR INDENIZ to the corresponding element group on the Element Group Name Page.
As delivered, these earnings are included in the KR EG RESCISA element group. If you use a different element group, add the earnings to it.
Add DSR SAB COM and DSR INDENIZ to the corresponding section on the Definition Page.
As delivered, these earnings are included in the KR RESCISAO PROV section. If you use a different section, add the earnings to it.
Methods to Calculate DSR SAB COM and DSR INDENIZ Earnings
Two variables are present that can be overridden at many levels to indicate if DSR SAB COM and DSR INDENIZ are to be calculated:
RC VR CONTA SAB
10 - Pay Saturday (default value)
20 - Do not pay Saturday
RC VR SET DSR
10 - Pay DSR when termination is on Friday (default value)
20 - Do not pay DSR
By default, these variables are set to process DSR payments. However, if these earnings are not included in the corresponding termination version, they are not going to be calculated.
The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Brazil. Instructions for running the query are provided in the Understanding How to View Delivered Elements topic.