Managing Terminated and Leave of Absence Employees in Variable Pay eligibility rules

[xavierlegarrec]

Overview

 

This blog post will provide insights on how to best manage Terminated employees and Leave of Absence (LOA) employees as part of the Variable Pay eligibility rules.

 

Reasons for this topic :

• When customer requirements for Terminated or LOA employees are tied to specific dates and/or event reasons, eligibility rules can become very complex to set up.


• The options/criteria available in Manage Business Rules can in some cases be misleading because of the way the Variable Pay-EC integration works.

 

Problem

 

Example :

• Our Variable Pay template is set up to retrieve records between 1/1/2020 and 12/31/2020.

 

• The customer wants to prevent all Terminated employees from getting a payout on their active records of the fiscal year except those with an Event reason of Normal Retirement (TERRTMNT) before June 1st, 2020.

 

• Below is the screenshot of the Job Information portlet of an employee who should be retrieved based on the requirement.

 

 

• During the implementation and based on this requirement, we built a condition as follows in our main record eligibility rule :

 

 

• However on May 26th, 10 days after the Termination of the employee we highlighted above, the customer's data migration team decides to make an update to an entire Business Unit's records in EC (including inactive employees). For this purpose they use Event Reason = Data Change.

 

• Now the employee we are using for testing has the following 2 records :

 

 

• In this particular case, the main record eligibility rule we set up initially will not work anymore and will not retrieve the active record for the Terminated user with event reason = Normal Retirement.

 

Reason for the issue

 

• Our eligibility rule (above screenshot) will fail after the data migration team updates the test employee's record because the EC-Compensation integration uses a top of stack logic and is unable to analyze various records over a period of time.

 

• In this example, even though we defined a date-based condition of "before 6/1/2020", the system is unable to scan through all Job Information records before 6/1/2020 to retrieve the correct one and only looks at the 6/1/2020 effective record.

 

Solution

 

• We need to add two new fields to a non-effective dated EC portlet (such as Employment Details in the screenshot below)

 

 

• Then we need to create a business rule in Employee Central to automatically copy the date and event reason for Termination into these fields.

 

 

• Once EC rules are set up and tested, we can proceed to adjusting our eligibility rules in our Variable Pay template.

 

Eligibility rules examples :

 

#1 - Filtering Terminated employees based on specific event reasons :

 

• In the example below, the Variable Pay global eligibility rule was built and tested for the following requirement :
  
  
  
  • Retrieve active records for employees who Terminated during the fiscal year (1/1 - 12/31/2020) with the following Termination reason codes :
    
    
    
    • TERRTMNT (Normal Retirement),
    
    
    • TER_DEAT (Death)
    
    
    • TER_DEATH_WORK_ACCIDENT (Death by work accident)
    
    
    
    
  
  
  • Retrieve all active records during 2020 fiscal year for any Future Terminated employees (example : a Termination was entered in EC on 9/1/2020 to be effective on 2/2/2021).
  
  
  
  

 

 

--> 0726/2023 comment: please note that instead of listing every single value for Termination Reason field like in this older screenshot above it would make sense to optimize the rule by using variables as explained with screenshots in this blog which make the rules run faster.

 

 

#2 - Filtering Terminated employees based on specific event reason as well as Leave of Absence employees :

• In the example below, the VP global eligibility rule screenshot was built and tested for the following requirement :
  
  
  
  • Retrieve active records for employees who Terminated during the fiscal year (1/1 - 12/31/2020) with the following Termination reason codes :
    
    
    
    • TERRTMNT (Normal Retirement),
    
    
    • TER_DEAT (Death)
    
    
    • TER_DEATH_WORK_ACCIDENT (Death by work accident)
    
    
    
    
  
  
  • Retrieve active records for employees who were NOT on Leave On Absence (LOA) for more than 365 days during the Fiscal Year 2020.
  
  
  
  

 

 

--> 0726/2023 comment: please note that instead of listing every single value for Termination Reason field like in this older screenshot above it would make sense to optimize the rule by using variables as explained with screenshots in this blog which make the rules run faster.

 

Note : if you are looking for more ways to handle Leave of Absence employees (condition in the rule above), please visit : https://blogs.sap.com/2020/09/02/compensation-eligibility-rules-lesser-known-rule-conditions-and-ove...

 

 

Conclusion

 

This workaround can be used for any compensation eligibility rules date-based criteria that are looking at data coming from an effective-dated portlet of Employee Central. All materials in this article were inspired by recent implementations that are now live. Please highlight if you see anything that needs to be corrected or if you have encountered easier ways to meet customer requirements on this particular topic.

 

 

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All the best

Xavier

 

 

 

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