Overview of Absence Reporting in the MCR

An employee on a fully paid absence continues to have their employee and employer pension scheme deductions calculated in the usual way, using their permanent pensionable pay and actual earnings for the period.

If an employee is on a sickness or family-related absence, scheme pension benefits are protected, depending on the payment factor in effect at the time, or, in the case of family-related absences, whether they are receiving statutory pay. This is to ensure that they aren’t disadvantaged by a reduction in pay during the absence. In such cases, their assumed pensionable pay is used (reported as notional pay in the MCR). No contributions are taken for unpaid sickness and family-related absences, but the period in which the unpaid absence occurs is reported to MCR.

Unpaid absences that are not assumed pay scenarios, for example, strike days, are reported and reflect the reduced actual pensionable pay for the period.

Follow the absence setup steps described here for accurate calculation and reporting of both paid and unpaid absences and to determine when assumed pensionable pay rules are applied.

Refer to the section on Retroactive Absence Reporting for the formula changes required.

For detailed information on configuring your UK statutory absence types and plans, see the product paper: Oracle Fusion HRMS (UK): Setting Up and Migrating UK Statutory Absences (Doc ID 2235239.1).