S-2299 - Termination

Termination event. This event layout records the termination of employees. Terminations, as well as transfers between companies, need to be reported to eSocial before payroll events. If a termination is planned (for example, tendering of a work notice, or end of a fixed term contract), it needs to be reported to the government by the next business day following the termination. If the termination is not planned, notify the government no later than ten business days following the termination, or before the submission of an S-1200 event for the terminated individual, whichever comes first.

There are two types of termination events, one for employees (S-2299) and one for non-employees (workers who have no employment relationship with companies they work for) (S-2399). Setup on the Labor Regime BRA page, Termination Legal Code page and Termination Action/Reason page determines if a termination action and reason performed for an employee in the Job Data component needs to reported to eSocial, whether payment calculation is required in the termination process, and with which event to send the information.

General Rules (Termination With or Without Payment Calculation)

Here are several rules that apply to the Termination event (with or without payment calculation):

  • When a new effective date is entered in the Job Data component for a termination action and reason of a worker, the system identifies the type of employment relationship (employee or non-employee) that the worker has with the company. To do that, it takes the employee class from the job and looks up the work type for that employee class on the Labor Regime BRA page. If the employee class from the job is not set up on the Labor Regime BRA page, no driver data or trigger for the termination will be created. If the employe class setup is available, and the selected work type is CLT, the worker is an employee; if a different work type is specified, the worker is a non-employee.

    Next, the system checks if the specified action and reason on the job is associated with a termination legal code (which indicates whether or not payment calculation is required) and an eSocial event on the Termination Action/Reason page.

    When the information is available, the system adds new driver data for this termination using the appropriate eSocial event (S-2299 or S-2399), if the data hasn’t been inserted already.

  • Termination events are processed on the eSocial Termination Events Page. When the termination event AE process is triggered on the run control page, it performs checks to make sure that the selected companies are active for eSocial reporting, the specified competency period is equal to or comes after the Adhere to eSocial date (month and year) and is not closed for periodic events, and the selected events are active. If any of these checks fails, the process stops and information is logged.

    Both S-2299 and S-2399 events are selected by default on the run control page and cannot be deselected.

    The Prepare Data option is the first processing option for S-2299 and S-2399 events. In this step, driver data that matches the selection criteria is loaded to staging tables, getting ready for XML files to be generated.

  • Information that is saved in different pages regarding an employee’s termination is used for the generation of one Termination event only. For example, in addition to the Job Information page, the Termination section of the Termination Parameters Page is also used to capture text information or comments about terminations. If the begin date of the information on the Termination Parameters page is earlier than or equal to (< or =) the effective date of the termination action on the Job Information page for an employee, information from both pages is used to generate a Termination event for the employee.

  • When a change is made to a termination row in the Job Data component for an employee, the system checks if an existing event for the same event code, employee (CPF number) and competency period is available. If yes, instead of generating a new event, the existing event is rectified if the event is already submitted to the government.

    In order to rectify a submitted event, the event’s receipt number must be present. The rectification event needs to be put on hold if the receipt number is not available.

    If an existing event is available but it’s not yet submitted to the government, the system updates the driver data for the changed row.

  • If a change in termination reason is made in the Job Data component for an employee, the system compares the old action and reason with the new values and see if they reference the same eSocial event. If they refer to the same eSocial event and the event doesn’t require calculation, the existing Termination event is rectified. However, if the new values reference an eSocial event that requires calculation, submit an S-3000 - Event Exclusion event to the existing event.

  • If a row for the termination action is deleted from the Job Data component for an employee, submit an S-3000 event to the existing termination event if it is already submitted to the government. If the event is not yet submitted to the government, the system removes the driver data for the deleted row.

  • If a termination is triggered after a period is closed, and the corresponding termination event setup does not allow submission after closed period, no Termination event is created. An error message is logged so that appropriate actions can be taken.

For terminations that require payment to be calculated based on associated wage types tables and submitted to the government through termination events, additional setup is needed so that appropriate information can be gathered for the calculation:

  • For termination types that require payment calculation, set the corresponding termination legal codes to require calculation on the Termination Legal Code page.

  • Specify earnings and deduction elements to be used for termination payment calculation on the Wage Types Table page of the Wage Types Table component.

  • Specify run types with the Termination or Term Non Empl payment type for termination processing on the Run Types page of the Wage Types Table component. This information is used to identify calendars to be used in termination payment calculation.

  • Specify alimony elements and health data elements to be used in termination payment calculation.

    Alimony elements are specified on the Wage Types Table page, with an alimony-related income tax type value: 51, 52, 53, 54, or 55.

    Health data elements are specified on the Health Data page.

    Alimony and health data amounts are reported in termination events the same way the termination results are recorded on the Earnings and Deductions page—alimony in total amount and health data amount broken down by element.

  • Associate wage types tables with companies on the Company Details BRA page.

Logs will be created to capture issues found in the setup for termination processing.

General Rules (Termination With Payment Calculation)

Here are several rules that apply to the Termination event (with payment calculation):

  • To process termination events that require payment calculation, the AE process needs to identify applicable calendars to be used in the calculation. A calendar is selected if it meets all these requirements:

    • It is finalized.

    • It pertains to a company and competency period that is specified in the Selection Criteria section of the eSocial Termination Events page.

      The period of the calendar is the same as the competency period that is specified as selection criteria.

    • It pertains to a run type that is specified on the Run Types page with the payment type set to either Termination or Term Non EMPL (termination for non employees), and that run type is linked to one of the selected companies through wage types tables on the Company Details BRA page.

    Identified calendars are listed on the eSocial Processed Calendars - eSocial Termination Events Page after the AE process is run.

  • To process retroactive adjustments for employees, information must also be provided in the Union Contract Revision section of the General Parameters Page for the retroactive calculation to happen.

  • Global Payroll for Brazil supports the S-2299 (or S-2399) event reporting of employees who have multiple employment relationships with different companies (companies that may or may not use Global Payroll for Brazil for termination event reporting).

  • The mass termination simulation functionality is an offcycle payroll process that provides payroll personnel an estimate of the costs (termination pay) incurred in case of a workforce reduction. If the offcycle calendars created for a simulation are applied to payroll, the AE process takes them into consideration when it is in the process of identifying applicable calendars to be used in the termination payment calculation. If these offcycle calendars are not applied to payroll, they will be not be considered for the termination event processing.

    For employees that are identified, driver data is added so that termination events can be created for them when the AE process runs. If an S-1200 event has already been created for the same period when the mass termination occurred, exclude the S-1200 event (if it is submitted to the government), or delete the event’s driver data (if the event has not been sent to the government).

  • Wage parcel and nature of indemnity payments pertaining to terminations of employees are to be reported using the S-1210 event.

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