Absence Elements for Compensatory and Leave Donation Plans

You can make absence payments for compensatory absence plans based on the date that the compensatory time was accrued. The Absence application passes the accrued date to the Global Payroll application so that it uses the correct rate of pay for absence.

For example, an employee is hired on 1/1/17 and is paid at a rate of 10 per hour. On 8/1/17, the employee receives a pay rise and is now paid at a rate of 12 per hour. The employee takes 3 days of leave from 10/5/17 to 10/7/17.

The employee accrued this leave as time off in lieu (TOIL) in July 2017 when they were earning 10 per hour. The application pays the employee for the 3 days leave at a rate of 10 per hour.

Compensatory Plans

When creating a rate definition to use for compensatory absence plans, in the Reference Date field, select the Absence Accrued Date value. The rate calculator calculates the rate as of the absence accrued date that's passed from the Absence application.

In the Setup and Maintenance work area, use the Element task to create absence elements for compensatory absence plans.

When creating such plans, in the type of absence information to transfer to payroll option, select Accrual Balances and Absences.

Leave Donation Plans

Workers can initiate requests to donate some or all of their accrual plan balances to coworkers who need additional time off. Administrators and managers can initiate this donation request on behalf of the worker. You can donate vacation only from Accrual and Compensatory plan types. Also, you can only donate in day or hours.

For example, Employee A is diagnosed with a long term illness and will be absent from work for a long time. You can enroll the employee into a leave donation plan. Employee B has a vacation accrual balance of 100 hours and wants to donate 10 hours to Employee A.

Now, instead of the stipulated 100 hours, Employee B will have an accrual balance of 90 hours. Employee A will have an accrual balance of 10 hours against the leave donation plan.

To use this balance, Employee A can do one of these actions:

• Enter a leave in the Absence application. The Global Payroll application receives an entitlement record for the number of hours or days that they requested.

• Take the balance as a Cash out or Payout.

Note: If Employee B earns 20 per hour and Employee A earns 10 per hour, then the application pays Employee B at 10 per hour.

When creating absence elements for leave donation plans, in the type of absence information to transfer to payroll option, select Accrual Balances and Absences.

Absence Elements for Payments after Termination

For absence plans that support payments after termination, set the entitlement element to Final Close. When creating absence element template, select Yes in the enable entitlement payments after termination option. Then, set each of the entitlement elements to the Final Close value.

On the Payroll Process Configuration page, set the Absence and Time Calculation Entries During Payroll parameter to one of these values:

Value	What The Application Does
Yes	Includes the absence and time calculation entries in the payroll run for those active employees that have these assignment statuses: Process When Earning Process When One Time Entry Further, the application includes the terminated employees in the payroll run only if they have an earning or an assignment level nonrecurring element entry.
No	Does not include the absence and time calculation entries in the payroll run for those employees that these assignment statuses: Process When Earning Process When One Time Entry And the application includes the terminated workers in the payroll run only if they have an assignment level nonrecurring element entry.