Understanding Mass Termination and Complementary Termination Payroll

Global Payroll for Brazil provides the mass termination and complementary termination payroll functionality that simplifies the processing of termination and complementary termination pays for a group of employees in the event of a workforce reduction or layoff. The process includes a setup component in which you create an off cycle group for a pay group and pay period, specify the type of mass process (termination or complement) you wish to run with supporting information, and select the employees to be included in it. When the setup is completed, the system extracts the data from employees’ Job records and automatically inserts the information into the system as an off cycle on demand process. For complementary termination payments, it populates all the required variables and dummy positive inputs to ensure that the process runs properly. With the off cycle on demand process prepopulated, you can begin the process like any other off cycle processes you have in the system—create an off cycle request for the off cycle group, run the calculation and finalize the calculation payroll.

As mentioned previously, two types of mass processes are supported: Termination and Complement (additional payments that are paid outside of the normal payroll schedule). With complementary termination processing, you have the option to process mass salary increases as well. Depending on the process selected, the information collected in the setup is slightly different. Refer to the Payee Detail Page topic for more information on setting up the mass termination and complementary termination processing.

Here are the high-levels steps for setting up and running mass termination and complementary termination processes:

  1. Define or review the termination setup to be used, which includes the definition of termination versions and associated termination earnings and deductions.

    See Setting Up Termination Versions.

  2. (For complementary termination) Update the run type that is used in complementary termination processing, for example, KR RESCISA, with the following information:

    Field or Control

    Description

    Allow Duplicates

    [Selected]

    Retro Adjustment Sources

    Specifies all run types for which retroactive adjustments need to be calculated, for example, KR 13SAL, KR 1A13SAL, KR FERIAS, and KR FOLHA M.

    Note that if there is a complementary termination-specific run type to be used, in addition to the setup just mentioned, it also needs to be included in the RC BR COMP TERM element.

    See Run Types Page.

  3. (For complementary termination) Verify that all elements that need to be calculated for retroactive adjustments are specified on the Retro Process Overrides Page for the country of Brazil.

  4. (For complementary termination) Create a calendar using the following information:

    Field or Control

    Description

    Run Type

    Enter the termination payroll run type, for example, KR RESCISA.

    Note: If you wish to calculate complementary termination pay in the monthly payroll using the KR FOLHA M run type in the calendar, select the same payee selection recommended below. Create a positive input (with the amount set to 0) in the regular payroll calendar for the terminated employee, when the complement termination is paid in a month that is different from the termination date.

    Payee Selection

    Select Active PLUS Payees with.

    Also, select Positive Input and Pending Retroactive Changes as additional criteria.

    See Calendars - Definition Page.

  5. (For complementary termination) Define a calendar group for the calendar you just created.

    Field or Control

    Description

    Process retro triggers

    [Selected]

    Pay Group

    Select the pay group selected in your calendar.

    Calendar ID

    Select the calendar created for mass process.

    See Calendar Groups Page.

  6. Enter parameters for the mass termination or complementary termination process.

    See Mass Term & Comp Data Page and Payee Detail Page.

  7. Create the off cycle request, review the off cycle request data, and perform calculation.

    Global Payroll off cycle processing functionality provides four off cycle types: manual payments, reversals and corrections, unscheduled payments, and advances. Global Payroll for Brazil uses advances to process requests for mass terminations and complementary terminations.

    See Initiating Off Cycle Transactions.

  8. Review payroll results.

    Using the Results by Calendar Group component, you can view the calculation results (earnings and deductions, accumulators and supporting elements) of employees included in the process.

    See Viewing Results by Calendar Group.