Examples of Calculating Hours-Based Seniority

In this example, you're an HR specialist configuring the enterprise seniority date at the person level. You are defining an hours-based seniority rule to calculate a worker's length of service. Here's how the hour conversion is defined:

  • 8 hours in a day and 40 hours in a week

  • 173.33 hours in a month (hours in a year divided by 12)

  • 2080 hours in a year and 52 weeks in a year

Let's see how to calculate the length of service for a worker Maya Singh using the hours-based seniority rule. Maya is an hourly employee and her work hours are entered in the seniority hours table (PER_SENIORITY_HOURS) every week.

Maya is hired in the Vision IND legal employer on 1-Jan-2007.

Date

Action

Legal Employer

Assignment

Job

Department

1-Jan-2007

Hire

Vision IND

Assignment 1

Sales Consultant

ERP

Seniority at the End of a Week

Applying the rule, Maya has a seniority of 40 hours for the week ending 7-Jan-2007.

Start Date

End Date

Seniority Hours

1-Jan-2007

7-Jan-2007

40

Here's how the seniority is calculated:

Length Of Service

Total Seniority Hours

How length of service is calculated

0 Years 0 Months 5 Days

40

Total seniority hours are less than the hours defined for a month (173.33). Therefore, total seniority hours are converted into days when calculating the length of service. The length of service calculation in days is 40 divided by 8 (hours in a day).

Seniority at the End of 6 Months

Maya has a seniority of 1080 hours after 6 months as of 7-Jul-2007.

Here's how the seniority is calculated:

Length Of Service

Total Seniority Hours

How length of service is calculated

0 Years 6 Months 5 Days

1080

Total seniority hours are less than the hours defined for a year (2080), but more than the hours defined for a month (173.33).

The number of months are calculated first so that the total number of seniority hours - (number of months * hours defined for the month) < hours defined for the month.

Therefore, the number of months in this scenario are 6. Using values in the equation: 1080 - (6 * 173.33) = 40 (this is less than 173.33). For the remaining 40 hours, a day conversion is done, which amounts to 5 days (40 divided by 8). Therefore, the final length of service is 0 years 6 months 5 days.

Seniority at the End of 1 Year 6 Months

Maya has a seniority of 3160 hours after 1 year and 6 months as of 7-Jul-2008.

Here's how the seniority is calculated:

Length Of Service

Total Seniority Hours

How length of service is calculated

1 Years 6 Months 5 Days

3160

Total seniority hours are more than the hours defined for a year (2080).

The number of years are first calculated so that total number of seniority hours - (number of years * hours defined for the year) < hours defined for the year.

Therefore, the number of years in this scenario is 1. Using values in the equation: 3160 - (1 * 2080) = 1080 (this is less than 2080). For the remaining 1080 hours, a month conversion is done, which amounts to 6 months. Then, a day conversion is done that amounts to 5 days.

Note: For hours-based seniority rules, the seniority date is calculated by reducing the total length of service from the seniority calculation process run date.