Understanding Statutory Absence Processing
This topic describes how to record an employee's absence due to maternity leave, paternity leave, or adoption leave.
Employees are entitled to receive payment for statutory absences if they meet certain criteria and conditions associated with these payments.
Global Payroll for the UK automatically checks some of the eligibility criteria and conditions based on the stored employee information. Other eligibility criteria must be validated before you enter the absence in the system.
Global Payroll for the UK calculates employees' average weekly earnings to determine whether their earnings are at or above the LEL. Employees below the LEL are not eligible for any statutory absences. You can override the calculated value using the Override Average Earnings page.
See Override Average Earnings Page.
For SAP and SPP, you must check the following eligibility criteria before recording the absence in the system:
Documentary proof of entitlement.
Employees are required to supply evidence of their entitlement to SAP and SPP. Global Payroll for the UK does not store this information or validate that the employee has provided documentary proof.
Notification period.
Employment conditions.
Statutory absences are only available to employees who have worked for an employer for a certain period. These conditions are not validated by Global Payroll for the UK for SAP and SPP.
Note: For SMP, you must use PeopleSoft HR to record some eligibility information. See the next topic for details.
For most statutory absences, you enter all the required employee information into Global Payroll for the UK pages. However, for SMP you must record some information using the Monitor Absence business process in HR.
Navigate to the Maternity Leave page as follows:
Use this page to enter MPP start and end dates, the employee's eligibility for SMP based on length of service, and the date that you received MAT1B notification. Global Payroll for the UK will not pay SMP if you have not completed the Maternity Leave page in HR.
In certain situations, employees are entitled to statutory absence payments after leaving their jobs. To process such employees using Global Payroll for the UK, you must terminate the employee in HR with the Action/Reason code Termination with Pay.
Note: Ensure that you set up the terminated employees correctly so that they are not paid other regular payments, such as salary, when you run the payroll process. When you have paid the statutory absence payments that the employee is entitled to, update the Action/Reason code to stop further payments being processed.
The following table lists the absence take and absence entitlement elements delivered for the UK:
Absence |
Absence Take |
Absence Entitlement |
---|---|---|
Statutory maternity pay before 6 April 2003 |
SMP AT1 |
SMP AE1 |
Statutory maternity pay from 6 April 2003 |
SMP AT2 |
SMP AE2 |
Statutory adoption pay |
SAP AT |
SAP AE |
Statutory paternity pay (birth) |
SPPB AT |
SPPB AE |
Statutory paternity pay (adoption) |
SPPA AT |
SPPA AE |
Statutory Sick Pay |
SSP AT1 |
SSP AE1 |
Occupational sick pay |
OSP AT1 |
OSP AE1 OSP AE2 |
Occupational maternity pay |
OMP AT1 |
OMP AE1 OMP AE2 |
Note: The OMP and OSP absence takes are provided as simple templates for occupational schemes. They are not intended to be used as delivered.
The following table lists the earnings delivered with Global Payroll for the UK:
Earnings |
Description |
---|---|
SMP ER PAY1 |
SMP pay higher rate |
SMP ER PAY2 |
SMP pay lower rate |
SMP ER P OFF |
SMP pay offset |
SPPA ER PAY |
SPP (adoption) pay |
SPPA ER OFF |
SPP (adoption) pay offset |
SPPB ER PAY |
SPP (birth) pay |
SPPB ER OFF |
SPP (birth) pay offset |
SAP ER OFF |
SAP pay offset |
SAP ER PAY |
SAP pay |
SSP ER PAY |
SSP pay |
SSP ER P OFF |
SSP pay offset |
OMP ER PAY1 |
OMP pay |
OMP ER P1 OF |
OMP offset |
OMP ER PAY2 |
OMP half pay |
OSP ER PAY1 |
OSP sick pay |
OSP ER PAY2 |
OSP half pay |
OSP ER OFFST |
OSP offset |
OSP ER P OFF |
OSP offset |