Manage Legal Entities

You need to define the scope before you can manage the available Legal Entities.

You have to add the required legal entities to scope before editing them using scope selection. This will also help you create or manage other entities like legal reporting units within the context of a legal entity.

Use the following steps to set the scope for a legal entity in HCM:

1. Select Manage Legal Entity in the implementation project task list.

2. Click Go To Task.

3. Click Select and Add.

4. Select the Legal Entity created earlier.

   Note: This step is required when you are defining the scope for the first time. The legal entity can be directly added to scope under the implementation project in subsequent scope selections.

Legal Entity HCM Information

A legal entity can also be a legal employer and/or a payroll statutory unit. You need to define HCM information for the legal entity, in such cases. This includes defining work day information, legal employer information and the mapping of the payroll statutory unit to a legislative data group.

Use the following steps to define HCM information for your legal entity:

1. Select Manage Legal Entity HCM Information in the implementation project task list.

2. Click Go to Task.

Define HCM Information for Legal Employer

This is enabled if the Legal Employer check box is selected while creating the legal entity.

1. On the first tab, enter the Legal Employer details and Legal Employer information.

2. Optionally, enter Workday information such as the start and end times of work, standard working hours and frequency.

3. In the Salary Level field, choose at what level the salary information will be assigned at: the term or assignment level.

4. Choose the Worker Number Generation method.

5. Choose whether or not you allow employment terms to be overridden at the assignment level.

6. Select the People Group Flexfield Structure (previously defined) that suits your Legal Employer.

7. Optionally, enter age related information for employment in fields Minimum Working Age, Minimum Retirement Age, Maximum Retirement Age, and Minimum Age of a Minor.

8. Select the Employment Model, the two or three-tier employment model with a single assignment or multiple assignments. See the online help and documentation for more information about the employment model and the critical choices you have to make.

9. Click Legal Employer Information and enter the following:

   • Registration Number

   • Corporate Identity Number

   • Base Business Number

10. Define notice period details of the different employee categories.

11. Choose the Employer Representative.

Define HCM Information for Payroll Statutory Unit

This is enabled if the Payroll Statutory Unit check box is selected when creating the legal entity.

1. Select the Payroll Statutory Unit tab.

2. Select the previously defined Legislative Data Group in the Associated Legislative Data Group list of values.

3. Enter the Fiscal Year Start date.

4. Click Submit to save.

   Note: You need to map the legislative data group to a payroll statutory unit so that all payroll objects like elements, payrolls, payment methods, are created within the context of a legislative data group.

5. Click Payroll Statutory Unit Information to enter India-specific Gratuity Information.