Termination Payments

In Mexico, when you terminate a payee, you might need to make the following payments:

• Regular earnings and deductions that are due for the termination period.

• Compensation for unused paid vacation days and the vacation premium.

  The system multiplies the DAILY RT (system element) by the proportional worked days in the year times the number of vacation days, as of the termination day or anniversary date.

  If the payee's seniority anniversary occurs during the termination pay period, the system calculates the corresponding days in an array using the new seniority years.

  To calculate the vacation premium, the system multiplies this result by the premium percentage.

• Compensation for the Christmas bonus.

  The system prorates worked days in the year to calculate the corresponding Christmas bonus pay.

• Severance pay or other compensation due to special termination earnings, according to the termination version selected for the payee.

• Amount owed for all unpaid loans, independent of each other.

  This amount is automatically deducted from the last payslip.

Note:

Termination payments can be calculated in either a regular payroll or an off-cycle payroll.

For Global Payroll for Mexico, the payroll process generates termination payments based on the last day that an employee works, which is one day prior to the termination date. The termination date is equal to the effective date of the TER (termination) action on the employee's JOB_DATA record (Job Data component).

When you enter a TER action, the system invokes the JOB retro trigger for processing of the employee's termination pay. To ensure that the payroll process uses the date one day prior to the termination date for termination payment processing, the delivered JOB retro trigger for terminations offsets the termination date by -1 for actions that equal TER. This is set by the Offset Days field value on the Trigger Definitions – Field Values page.