Delivered Termination Earnings

Extra period termination earnings that are considered to be part of the termination process must be specified in the Termination Earning field on the Extra Period Definition page.

An employee who is entitled to extra periods in July and December, for example, would be paid the earnings LIQ PXTR JUL and LIQ PXTR DIC.

Note:

PeopleSoft Global Payroll for Spain delivers sample earnings that are defined as PeopleSoft Delivered/Not Maintained. If you want to create your own termination elements, first define them on the Earnings page and then list them on the Extra Period Definition page.

See Extra Period Definition Page.

Example of Termination Earnings Calculation

Assume that an employee has a total gross annual compensation of 50.000 EUR. The labor agreement specifies that the employee receive two extra period payments: one paid on June 15 and the other on December 15. Your company has a monthly payroll, so in addition to the 12 regular payments, two other payments exist, making a total of 14 payments in a year. To get the gross compensation for the monthly payment, you make this calculation:

50.000/14 = 3571.43 EUR

Assume that the employee joined the company on March 1 and that the time frame for the June extra period is six months (from January to June). The extra period payment date is June 15. He will earn 4/6 times the gross compensation of the payment because he has been working for four months.

Remember that the payment date does not alter the result, so the extra period calculation takes into consideration the days worked up to June 30, regardless of the payment date. For example, if the payment date is June 15 and the time frame end date is June 30, the system calculates the days worked from May 15 to June 30.

The result for a monthly employee who joined the company in mid-May (using a month with 31 days) is:

((17+30) / 180) * 3571.43 = 0.261111 * 3571.43 = 932.54 EUR

The result for a daily employee is:

((17+30) / 181) * 3571.43 = 0.259669 * 3571.43 = 927.39 EUR

Now consider the example of an employee hired March 1 and terminated May 31.

If the employee is paid monthly, the result is:

((30 + 30 + 30) / 180) * 3571.43 = 0.5 * 3571.43 = 1785.72 EUR

If the employee is paid daily, the result is:

((31 + 30 + 31) / 181) * 3571.43 = 0.508287 * 3571.43 = 1815.31 EUR

This amount is paid through the earning element for the June extra period that is specified in the Termination Earnings field on the Extra Period Definition page.

Delivered Termination Earnings

This table lists the delivered termination earnings:

Earning	Description
DEV PREAVISO	Preadvised earning. This is the amount to add to the employee's last payment for preadvice days not fulfilled by the employer. Define preadvice days not fulfilled for an employee termination on the Termination Management ESP page.
INDMNCN	Termination indemnity. This is an existing element that stores the severance pay that is paid to a terminated employee. The calculation rule for this earning element has been modified from Amount to Unit * Rate, as defined on the Earnings - Calculation page.
INDMNCN SENT	Sentence indemnity. This is the amount of severance pay that the judge imposes during job litigation, as defined on the Manage Terminations ESP page.
LIQ PXTR DIC	December extra period termination. This is used for December extra period termination payment. The execution of this earning is conditioned to generation control FNQ GC LIQ DEV.
LIQ PXTR JUN	July extra period termination. This is used for July extra period termination payment. The execution of this earning is conditioned to generation control FNQ GC LIQ DEV.
LIQ PXTR SEP	September extra period termination. This is used for September extra period termination payment. The execution of this earning is conditioned to generation control FNQ GC LIQ DEV.
SAL TRAMIT	The amount calculated as job litigation salary.
VAC NDSFRTDS	Terminate vacation days paid at termination. This is used to store the amount corresponding to vacation days that are paid at termination.