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: Workforce Administration > Absence and Vacation > Maternity/Parental Leave UK > Maintain Maternity Leave > Maternity Leave.

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