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:

  1. 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 (Global Payroll & Absence Mgmt, and then Payee Data, and then Create Overrides, and then Supporting Elements). 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).

  2. 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.

  3. 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.