Termination and Rehire Requirements

When you terminate an employee, the application updates payroll records of the employee accordingly. These scenarios explain the impact of a termination.

HR Records

• The status of the employee records remains Active on and before the actual termination date.

• The status of the employee records becomes Inactive from the next day of the termination date.

Payroll Records

The duration until which the payroll relationship remains open depends on the payroll relationship rule that the respective country defines.

For countries that have the rule:

• "I", the payroll relationship ends on the next day after the actual termination date.

• "L", the payroll relationship remains active endlessly.

• "C", the payroll relationship becomes inactive from the next day after the ATD.

The application end dates the regular earnings on the ATD (=LSED). However, you can add severance pay related element to an employee till the Final Close date. The application processes the employee in a payroll till their Final Close date.

When terminating employees, choose the final close date in such a way that the application can process employee's severance pay a few days or months after their last working day.

Note: You can re-extract the updated termination details after the initial extraction to the third-party application. However, you can't reverse the termination process as the integration supports only deleted transactions for Elements and Bank accounts. Reversing a termination process might be considered in future releases.

Rehire

If the hire date is within the current extract period, the application extracts the employee. In case of rehire, the application considers the work relationship of that rehire process. If the hire date of this work relationship is within the current extract period, the application includes the employee in the extract. The application retains person number of the employee if they're rehired within the Legal Employer.

Note: You must enter the employee's prior employment final close date before you rehire employees.

Transfer

In case of a transfer of an employee, the application terminates the current work relationship and creates a new work relationship. In this case, the extraction file includes two records.

Leave Information

The Absence application records the leave information as a single record. But when the interface application extracts the details the Absence application separates the leave information as a separate transaction.

Rate Type Change

The application supports Hourly and Salaried (monthly) Rate types.

• For Hourly basis, enter the scheduled hours with the rate 1 amount for hourly rate. Leave the Standard Hour field blank.

• For Salaried Rate type, enter the standard hours with the rate 1 amount for month frequency.

In case of any change in the rate type, change the respective standard or schedule hours automatically. Hence the existing rate type has a delete record and a new record for the proposed change rate type in the extractions.