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Oracle Fusion HCM (Germany): Absence Setup and Functional Considerations
OR AC LE WHI TE P AP E R
|
M ARC H
2015
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Table of Contents Disclaimer ...................................................................................................................... 2 Release........................................................................................................................... 4 Introduction ................................................................................................................... 5 Annual Leave and Additional Leave for Seriously Disabled Persons ...................... 6 Setting Up Absences for Annual Leave .................................................................... 11 Create Absence Plan .................................................................................................................11 Create Absence Type ................................................................................................................15 Absence Accrual Formula ORA_HRX_DE_ANNUAL_LEAVE .........................................................19
Creating Individual Override for Absences ...................................................................... 21
Special Leave and Unpaid Leave ............................................................................... 23 Setting Up Absence Reasons for Different Absence Types .......................................... 25 Create Absence Reasons ...........................................................................................................25
Setting Up Absences for Special Leave ........................................................................... 26 Create Absence Plan .................................................................................................................26 Create Absence Types ...............................................................................................................29
Setting Up Absences for Unpaid Leave ............................................................................ 32 Create Absence Plan .................................................................................................................32 Create Absence Types ...............................................................................................................33
Appendix ............................................................................................................................... 37
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Release The Absence Setup is available in Oracle Fusion HCM for Germany in Release 11.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Introduction Based on the requirements of the Law Bundesurlaubsgesetz and the Social Insurance regulations, different kinds of vacation rules must be considered for setting up your absences. This document describes how you can create German sample data based on this Law. The special rules based on collective or company agreements are not covered. Follow the guidelines below to create the required absence data for the following absence types:
Annual leave: by Law (Jahresurlaub), which refers to a minimum entitlement based on BUrlG
Additional leave for seriously disabled persons: by Law (Zusatzurlaub Schwerbehinderte)
Special leave: paid (Sonderurlaub)
Unpaid leave: (Unbezahlter Urlaub)
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Annual Leave and Additional Leave for Seriously Disabled Persons The following table gives you an overview about the current rules: Annual Leave – By Law Basic information Accruing period Accruing amount
Rules for young employees
Rules for parttime employees
Carry over rules
Additional Leave for Severely Disabled Persons – By Law
Bundesurlaubsgesetz
SGB IX Schwerbehindertengesetz
Calendar year
Calendar year
24 working days for 6 working days per week or 20 working days for 5 working days per week based on the law plus extra days based on the tariff or company agreements At the beginning of a calendar year: age < 16 30 working days age < 17 27 working days age < 18 25 working days based on 6 working days week Calculation of part-time vacation days in case the employee works less than fulltime working days: vacation days for full-time * (working days for part-time / working days for full-time) * (number of months with entitlement for vacation/12). Example: For 4 days part-time based on a 5-day working week, 20 annual vacation days, the entitlement is: 20 * (4/5) * (12/12) = 16 days annual vacation.
5 additional days based on 5 working days per week
Vacation is granted and taken for the calendar year. Transfer to the next year is permissible only when urgent operational reasons justify this. The time limit is extended for three months of the following
See annual leave
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Not applicable
Calculation of part-time vacation days in case the employee works less than full-time working days: vacation days for full-time * (working days for part-time / working days for full-time) * (number of months with entitlement for vacation/12). Example: For 4 days part-time based on a 5-day working week, 20+5 annual vacation days, the entitlement is: 25 * (4/5) * (12/12) = 20 days annual vacation
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
year (until 31. March).
Entitlement period Pro rata temporis
Special rules for new employees
There is an extra rule for employees who are on long-term sick period and not able to take the annual leave until this limit. For such employees, the carry over rules is extended up to 15 months. Calendar year.
Calendar year
This rule can be part of a work contract and regulates a separation between minimum vacation based on the law, and extra vacation based on a tariff or company agreement. If this rule is in place, then only the entitlement for minimum vacation is granted in case of termination. After a waiting period of 6 months, the employee gets the full vacation entitlement.
See annual leave
Hire before 01st July:
Hire before 01st July:
Example: Hire date of 01st February;24 days annual leave for a full calendar year. waiting period from February until July = 6 months starting with August = full annual vacation entitlement but only for 11 months of employment = 22 days annual vacation entitlement
Example: Hire 01st February; 24+5 days annual leave for a full calendar year. waiting period from February until July = 6 months starting with August = full annual leave entitlement but only for 11 months of employment = 26,58 days annual vacation entitlement -> rounded up to 27 days
Hire starting with 01st July and later: Waiting period for this calendar year cannot be fulfilled Example: Hire 01st August; 24 days annual vacation for a calendar year.
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After a waiting period of 6, months the employee gets the full vacation entitlement.
Hire starting with 01st July and later: Waiting period for this calendar year cannot be fulfilled Example: Hire 01st August; 29 (24 + 5) days
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Waiting period from August (current year) until January (next year); starting with August = immediately entitlement of vacation days for 5 months of employment = 10 days (24/12*5) a carryover of these 10 days is allowed in this case starting with February = annual vacation entitlement of 24 days for this calendar year in total: 10 + 24 = 34 days annual vacation entitlement Note: only full months of employment are considered for the entitlement of vacation. Example: Hire date of 05th August -> this month doesn’t count
Termination of new employees
Termination within the waiting period:
Termination
There are different rules if an employee leaves the company: Termination until 30th June entitlement = 1/12 of the full annual leave. Termination after 30th June entitlement = full annual leave (minimum vacation based on the law) – Pro rata temporis rule:
annual vacation for a calendar year. Waiting period from August (current year) until January (next year); starting with August = immediately vacation days for 5 months of employment = 12,08 days (29/12*5) a carry over of these 12,08 days is allowed for such case starting with February = annual vacation entitlement of 29 days for this calendar year in total: 12,08 + 29 = 41,08 days annual vacation entitlement Note: only full months of employment are considered for the entitlement of vacation. Example: Hire date of 05th August -> this month doesn’t count. See Annual leave
there is a fractional entitlement of 1/12 for each month of employment the employee receives the fractional entitlement in the month when the termination becomes known (announcement date) Employer needs to create a certificate about the taken or discharged vacation days.
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See Annual leave
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
The employee gets the reduced vacation days for the additional vacation (based on a tariff or company agreement) based on the full months of employment for this calendar year. If there is no pro rata temporis rule in place the employee gets the full vacation days for the additional vacation days for this calendar year. Vacation entitlement cannot be taken the employer must pay out the amount of those days in cash
Rules for rounding
Vacation payment
Employer must create a certificate about the vacation days utilized. A rounding is only statutory in case of fractional vacation calculation in accordance to § 5 (2) BurlG; Decimals have to be considered while calculating fractional days but for the results a rounding is needed (rounding up for decimal >= 0,5; no rounding for decimals < 0,5); The salary is measured by the average earnings that the employee has received in the last 13 weeks before the start of vacation. In practice, the average of the last 3 months is counted. Note: If there is no history in place for the last 3 months (maybe due to long-time sickness or due to exceptions for new starters) the average is based on a different period, either on the salary of the current month or by finding of 3 months in the long-time history. Employees with fix salary – vacation
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See Annual leave
See Annual leave
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
payment = 100% Reporting
Payroll impact
It’s usual to report the vacation balance on the employee’s payslip. It can be reported on a different way too. The employee requires a report with the number of days taken in the year he is leaving an employer. in case of calculation: the average of the last 13 weeks (or 3 months) in case of reporting: vacation balance on payslip
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See Annual leave
See Annual leave
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Setting Up Absences for Annual Leave Create Absence Plan 1. In the Tasks pane of the Absence Administration work area, click Manage Absence Plans. 2. Click Create:
3. Select Legislation Germany and Plan Type Accrual.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
4. Select the tab Plan Attributes:
5. Specify the Plan, Legislative Data Group, and Status In the General Attributes section. Select the value for Plan UOM as Days. 6. In the Plan Term section, select the Type Calendar year and enter the relevant start dates. 7. In the Legislative Information section, select the Context Segment Germany Annual Leave which is the annual leave days applicable for this plan. Specify the following: a. Work Days Per Week: This information is required to determine the minimum vacation entitlement based on law and to calculate the vacation entitlement for employees who work part-time less than the usual company work days. b. Waiting Period Length: If there is a special rule for this plan so that the waiting period is different to the waiting period by law (for example, agreed for a shorter time) then you can enter this waiting period length here. The UOM specifies the measurement for this value. c. Pro rata temporis: Select this field if you want to reduce the additional vacations days for the remaining months of an employment (for example, for terminations after 30th June of a calendar year).
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
8. Select the tab Participation:
9. Click Select and Add to define eligibility profile for the employee. This ensures that the eligible persons are enrolled for this plan during hiring, although it is also possible to perform a manual enrollment. 10. Select the tab Accruals:
11. In the Accrual attributes section, apart from the German legislative formula, also specify the following: a. Accrual Method: Select Incremental because for the waiting period (after hiring the employee), the application increments the annual leave days. b. You can also allow a negative balance and give a negative balance limit. c. You can allow a carryover of the remaining annual leave days at the end of a calendar year and define the duration for its expiry. d. The accrual formula ORA_HRX_DE_ANNUAL_LEAVE contains the application of German annual leave accrual process. See Appendix for the main logic of this formula. 13
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
12. Select the tab Entries and Balances:
Note: If for any reason you need to adjust the vacation balance manually, check Other adjustments and the necessary Adjustment Reasons to activate this feature. Oracle Fusion HCM for Germany does not calculate any rates or amounts as payment information and transfer to the payroll. This feature only provides the absence types and related periods of the employees as basis for a (third-party) payroll interface.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Create Absence Type 1. In the Absence Administration work area, click Manage Absence Types. 2. Click Create:
3. Select the pattern Generic absence. 4. Select the tab Attributes:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
5. Specify the Plan, Legislative Data Group, and Status. Select the value for UOM as Days. 6. Select the relevant eligibility profile for persons to whom this absence type applies. 7. If partial vacation days are allowed, then specify the partial day rule. 8. Enable the necessary groups for updating the absence records. 9. Select the tab Plans and Reasons. 10. Click Select and Add.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
11. Select the Absence Plan you want to assign this absence type with and specify the other information. 12. Click OK.
13. Select the tab Display Features:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Note: There are some features that you can set to activate displays and rules. However, in this example, no changes are required. 14. Select the tab Action Items:
13. No further action items required for annual leave in this example.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Absence Accrual Formula ORA_HRX_DE_ANNUAL_LEAVE The table below gives an overview about the used database items and the priorities. Parameters None Used Contexts (Used in DBI retrieval, set by the absence process)
ACCRUAL_PLAN_ID EFFECTIVE_DATE HR_ASSIGNMENT_ID PERSON_ID
Database Items with Source Database Item Name Person/Employment PER_TERM_REL_DATE_START PER_TRM_REL_ACTUAL_TER MINATION_DATE PER_TRM_REL_NOTIFIED_TER MINATION_DATE PER_TRM_NORMAL_HOURS PER_PER_DATE_OF_BIRTH PER_PERSON_DISABILITY_LEG _DDF_DE_HRX_DE_DIS_DEGR EE Absence Plan ANC_ABS_PLN_INFORMATIO N_NUMBER1 ANC_ABS_PLN_INFORMATIO N_NUMBER2 ANC_ABS_PLN_INFORMATIO N_NUMBER3 ANC_ABS_PLN_INFORMATIO N1 ANC_ABS_PLN_INFORMATIO N2 Employment flex context DE PER_ASG_INFORMATION_NU MBER1 PER_ASG_INFORMATION_NU
Meaning
Source
Hire Date Termination Date
Employment Data Employment Data
Termination Announced Date Normal Hours Date of Birth Disability Degree
Employment Data
Annual Leave Days
Accrual Plan Flex DE_ANNUAL_LEAVE Accrual Plan Flex DE_ANNUAL_LEAVE Accrual Plan Flex DE_ANNUAL_LEAVE Accrual Plan Flex DE_ANNUAL_LEAVE Accrual Plan Flex DE_ANNUAL_LEAVE
Work Days per Week Waiting Period Length UOM (Waiting Period) Pro rata temporis
Annual Leave Days Work Days per
Comment
Employment Data Person Data Person Disability Data
Employment Data (DE Flex) Employment Data (DE 19
Overrides Plan Default
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
MBER2 PER_ASG_INFORMATION4 PER_ASG_INFORMATION_DA TE1 PER_ASG_INFORMATION_NU MBER3 PER_ASG_INFORMATION5 PER_ASG_INFORMATION6
Week Irregular work day distribution Alternative Waiting Period Start Date Individual Waiting Period Length UOM (Waiting Period) Pro rata temporis
Flex) Employment Data (DE Flex) Employment Data (DE Flex) Employment Data (DE Flex) Employment Data (DE Flex) Employment Data (DE Flex)
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If different from hire date Overrides Plan Default Overrides Plan Default Overrides Plan Default
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Creating Individual Override for Absences Use the Manage Employment task to specify additional information related to an employee for individual overrides if it differs from the rules that is defined in the absence plans. 1. Select the Manage Person task and select the employee for whom you want to customize the absences. 2. Go to the Manage Employment page. 3. In the Job Details section, additional fields are available to capture absence information for the employee.
4. Enter the following information, if required: a. Annual Leave Days: Specify this, if this differs from the days defined in the absence plan. b. Work Days per Week: You could either increase or reduce the number of days per week. This information is required to calculate the vacation entitlement for employees who work part-time days that are different than the usual company work days). c. Irregular Work Day Distribution: Select this for persons who have an irregular workday distribution and provide the annual leave days in the field above. d. Individual Waiting Period Lenght: If there is a special rule for this plan so that the waiting period is different to the waiting period by law (for example, agreed for a shorter time) then 21
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
you can enter this waiting period length here. The UOM specifies the measurement for this value. e. Pro rata temporis: Select this field if you want to reduce the additional vacations days for the remaining months of an employment (for example, for terminations after 30th June of a calendar year).
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Special Leave and Unpaid Leave The following table gives you an overview of the current rules for special leave and unpaid leave: Special Leave Basic information
Unpaid Leave
Bürgerliches Gesetzbuch § 616
Not regulated by law; agreement between employee and employer
Special leave can be given to the employee in case of special circumstances like: Bereavement Childbirth Private anniversary Service Anniversary Private relocation … The duration of this kind of leave can take one or more days depend on the tariff or company agreement. Accruing period Accruing amount Rules for young employees Rules for parttime employees Carry over rules Entitlement period Pro rata temporis Special rules for new starters Termination new starter Termination Rules for rounding Vacation payment
Absence duration
Absence duration
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable Absence duration
Not applicable Absence duration
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable Not applicable
Not applicable Not applicable
The salary is measured by the average earnings that the employee has received in the last 13 weeks before the start of vacation. In practice, the average of the last 3 months is counted. Note: If there is no history in place for the last 3 months, (for example, due to long-time sickness or due to exceptions for new starters) the average is based on a different period, that is, either on the salary of the current month or by finding of 3 months average in the previous history.
No vacation payment. In case of white collar worker with a fix monthly salary a fractional calculation has to take place.
Reporting
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Payroll impact
For calculation purposes: the average of the last 13 weeks (or 3 months). For reporting purposes: vacation balance on payslip.
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Determining the time span of a time month without payment: For example, Calendar Month: 01-May-2005, Time Month: 05-May-2006. After reaching this limit the SI-days (30 for a full month) must be cut and the DEUEV processing generates a notification with reason "34". When the employee is back to work, the payment and SI-days calculation starts again and the DEUEV processing reports a notification with reason "13"). Determining the time span of minimum 5 consecutive working days without payment to report letter ‘U’ for the employee’s tax card (based on a calendar year).
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Setting Up Absence Reasons for Different Absence Types You can define different absence types (one for each absence reason) or you can work with absence reasons that you assign to an absence type. The following example shows how you can setup absence reasons. Create Absence Reasons 1. In the Absence Administration work area, select the Manage Absence Reasons task. 2. Click Create:
3. 4. 5. 6. 7.
Enter the absence name and description. Select Legislation Germany. Select the status Active. Ensure that you have entered the effective start and end dates for the absence reasons. Similarly, you can create many absence reasons, such as Child Birth, Bereavement, or Relocation as required.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Setting Up Absences for Special Leave Create Absence Plan 1. Select the Manage Absence Plans task from the Absence Administration work area. 2. Click Create:
3. Select Legislation Germany. 4. Select the Plan Type Qualification. 5. Click Continue.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
6. In the Plan Attributes tab, enter the general attributes such as plan name, description, the LDG, and the status:
7. Select Days in the Plan UOM field. 8. Select Absence duration in Type. 9. Select the tab Participation:
10. Define and select an eligibility profile for the relevant person. 11. Select the tab Entitlements:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
12. In the Qualification Band Matrix section, click Add. 13. Define the sequence using the expression builder. For example, an expression that always evaluates to true (like 1=1). 14. If you want to limit the duration of the special leave, enter the qualification details. 15. Select the tab Entries and Balances:
Note: Oracle Fusion HCM for Germany does not calculate any rates or amounts as payment information and transfer to the payroll. This feature only provides the absence types and related periods of the employees as basis for a (third-party) payroll interface.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Create Absence Types 1. Select the Manage Absence Types task from the Absence Administration work area. 2. Click Create:
3. 4. 5. 6.
Select Legislation Germany. Select the Pattern Generic absence. Click Continue. Select the tab Type Attributes:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
7. Enter the relevant information for name, description, LDG, status, and set the eligibility profile. 8. Select the UOM as Days. 9. Enter Duration Rules, if required, to create a message for a limitation of the absence duration. You must also set the duration rules. In this example, the duration rule is to create a warning message when the employee exceeds the duration limit. 10. If partial vacation days are allowed, then you can select the value in the Partial Day Rule field. 11. In the Absence Record Maintenance, enable the necessary groups to update the absence records. 12. Select the tab Plans and Reasons:
13. In the Absence Reasons section, you can assign the absence plan and the absence reasons that you created earlier. 14. Select the tab Display Features:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
15. If you work with absence reasons, ensure that the reason field is displayed and editable. 16. Select the tab Action Items:
17. Use this in case you want add any certifications. For this example, no action items are required.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Setting Up Absences for Unpaid Leave Create Absence Plan 1. Select the Manage Absence Plans task from the Absence Administration work area. 2. Click Create:
3. Select Legislation Germany. 4. Select the Plan Type No entitlement. 5. In the Plan Attributes tab, specify the General Attributes:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
6. Select the UOM Calendar Days. 7. In the Plan Term section, select the Type Calendar year and specify the Calendar start date. 8. Select the tab Participation.
9. Click Select and Add. 10. Specify the eligibility profile. 11. Select the tab Entries and Balances and specify the relevant information, if applicable:
Note: Oracle Fusion HCM for Germany does not calculate any rates or amounts as payment information and transfer to the payroll. This feature only provides the absence types and related periods of the employees as basis for a (third-party) payroll interface. Create Absence Types 1. Select the Manage Absence Types task from the Absence Administration work area. 2. Click Create: 33
Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
3. 4. 5. 6.
Select Legislation Germany. Select the Pattern Generic absence. Click Continue. Select the tab Type Attributes:
7. Enter the relevant information for name, description, LDG, status, and set the eligibility profile. 8. Select the UOM Days.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
9. Enter Duration Rules, if required, to create a message for a limitation of the absence duration. You must also set the duration rules. In this example, the duration rule is to create a warning message when the employee exceeds the duration limit. 10. If partial vacation days are allowed, then you can select the value in the Partial Day Rule field. 11. In the Absence Record Maintenance, enable the necessary groups to update the absence records. 12. Select the tab Plans and Reasons:
13. In the Absence Reasons section, you can assign the absence plan that you created earlier. 14. Select the tab Display Features:
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
15. Select the tab Action Items:
16. Use this in case you want add any certifications. For this example, no action items are required.
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
Appendix Formula Inputs (DBIs): Person and Employment Data: Employee Hire Date Employee Termination Date Employee Termination Announced Date Employee Date of Birth German Disability Flex Context: Disability Degree German Vacation Plan Flex Context: Annual Leave Days Work Days Per Week Alternative Waiting Period Start Date Individual Waiting Period Length UOM pro rata temporis German Employee Work Terms Flex Context: Annual Leave Days (Individual override to plan value) Work Days Per Week Irregular Work Day Distribution Waiting Period Length (if not specified, take probation period, if that is not specified assume waiting months = 0) UOM pro rata temporis (Individual override to plan value) Formulas: HRX_DE_ABS_AGE_AT_YEARBEGIN – calculate employee age at begin of the year of the effective date HRX_DE_ABS_VAC_ACCRUAL – calculates the accrual and carryover values HRX_DE_ABS_STANDARD_VACATION – reads and process DBIs, call HRX_DE_ABS_VAC_ACCRUAL for accrual calculation Fast formula HRX_DE_ABS_STANDARD_VACATION is assigned to the Absence Plan accrual calculation field Formula processing: Accrual calculation in HRX_DE_ABS_VAC_ACCRUAL Set default values for Minimum vacation Minimum vacation for young workers Extra vacation for disabled persons Calculate employee age Calculate full time annual leave entitlement Calculate part time factor Identify events Effective date = end of Jan -> need to calculate annual leave entitlement for employees who
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
passed waiting period Waiting month = 0 -> no waiting, full or fractional annual leave accrual in hire month Last month of waiting period -> fractional accrual for hire year is accrued Waiting period > 6 month o Month 6 -> grant minimum (fractional) leave o Last month of waiting > 6, grant remaining fractional extra vacation Termination in waiting period -> accrue fractional vacation in month termination is announced Year end in waiting period -> accrue fractional vacation for hire year immediately Calculate accrual according to event and working period in the year Prorate accrual if termination in current year is known in January and pro rata temporis = Y Fractional vacation is rounded to full days Prorate accrual according to work term factor if part time employee and no irregular work time distribution, rounded to minutes (three decimals) because this is the number of decimals that absence entry supports If irregular work time distribution, an entry of the prorated leave value is expected to exist for the employee and this is taken directly. Calculate carry-over amount in December Return values: accrual amount, carry over amount
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Oracle Fusion HCM (Germany) – Absence Setup and Functional Considerations
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