Understanding AFB Rules

This chapter discusses:

Association Française des Banques (AFB) rules.
Compensation.
Transport allowances.
End of contract allowances.
Retirement allowances.

Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for France. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

See Also

Viewing the Delivered Elements

AFB Rules

Many industries have developed special working and payment arrangements for their employees, usually offering benefits above the statutory minimum.

This section discusses:

AFB sections.
Base salary.
Transportation and diploma premiums.

Entering Absences and Generating Wage Certificates

AFB Sections

AFB sections are triggered in the process list if the payee has an AFB collective agreement in the payee’s human resources information. This is verified by using the condition formula AFB FM TEST CC, which is delivered as sample data and which you may modify to suit your needs.

Note. The formula AFB FM TEST CC determines whether the system element LABOR AGREEMENT is equal to the variable AFB VR VALUE. By default, the value of the variable AFB VR VALUE is equal to AFB. (AFB VR VALUE is a variable with a character format.) Then, if the value of the system element LABOR AGREEMENT is equal to AFB, the sections managing the AFB rules are triggered. PeopleSoft does not provide the AFB collective agreement value in the HR table. There are two solutions to handle this situation: you can create a labor agreement with a value equal to AFB for the banking collective agreement, or you can create the banking collective agreement with the value that you want, but you must modify the value of the variable AFB VR VALUE in order to have this value equal to the labor agreement name.

Base Salary

The annual salary consists of thirteen identical amounts. However, companies can decide that the annual basic salary is made of twelve identical amounts (in agreement with the work council).

For basic salary paid over twelve months, the payee receives twelve identical amounts. The annual amount is stored in a rate code.

For basic salary paid over thirteen months, the payee receives twelve identical amounts and an additional amount for the thirteenth month. The thirteenth amount is paid in December, or when the payee leaves the company.

The annual salary can be managed by either:

one rate code for twelve months and one rate code for the thirteenth month, or,
one rate code for the thirteen months.

If the employee was hired during the current year, or leaves before December, the thirteenth amount is paid in proportion to time worked.

In case of hiring or leaving, a daily rate is calculated using the formula : annual basic salary * 12 / 13 / calendar days of the year. The daily rate is calculated in proportion for part-time payees.

Three earnings are developed as sample data. The calculation of the thirteenth month is based on accumulators that you populate.

Compensation

This section discusses:

Earnings elements.
The thirteenth payment.
Diploma premium.

Earnings Elements

The collective agreement stipulates that the annual salary for a payee must be paid in 12 monthly payments, along with an additional amount for the thirteenth month, which is usually paid during the December payroll. However, companies can decide to pay the annual salary by using 12 identical payments (rather than using the thirteenth amount).

This table lists the earnings elements for each case:

Earnings Element	Description
AFB SAL 13 M	Used to pay the 12 payments when a payee is paid by using 13 amounts.
AFB SAL 13EM	Used to pay the thirteenth payment.
AFB SAL 12M	Used if the payee is paid by using 12 identical amounts.

PeopleSoft does not maintain these earnings. The calculation rules and proration rules have been specified by PeopleSoft, but you may change them to fit your own requirements.

Note. One instance in which you might want to modify the proration rules is for the proration applied to the calculation of the thirteenth month. The formula ABS FM BASE 13EME calculates the amount of the thirteenth-month payment.

The PeopleSoft system does not check whether earnings are below the statutory minimum. Statutory minimum earnings are defined by the collective agreement according to the defined category of the employee. The PeopleSoft system also does not check whether earnings paid comply with the salary scale stipulated by the collective agreement.

The Thirteenth Payment

There is an extra earnings element for the thirteenth salary amount: AFB SAL 13EM. This earning is triggered by a generation control when the payee leaves or when the thirteenth payment becomes due. Payees choose in which month they want to receive the payment.

The earning is prorated, based on calendar days, calendar half days, and hours worked in the year. These prorations depend on accumulators, which are listed in this table:

Accumulator	Description
AFB AC JR CAL AN	Stores the number of calendar days of the year. This accumulator is populated only by the calendar days included in the segment period paid.
AFB AC JR NPAY AN	Stores the number of calendar days unpaid. Populate this accumulator based on how your organization defines an unpaid day.
AFB AC JR DPAY AN	Stores the calendar days half paid. Populate this accumulator based on how your organization defines a half-paid day.
AFB AC HR THEO	Populated by the number of theoretical hours of the segments of the year.
AFB AC HR ABS AN	Stores the number of hours of absences.

The accumulators in the preceding table are used in the formula AFB FM BASE 13EME to calculate the thirteenth payment following some prorations, depending on the presence of the payee in your company during the year.

The payment date is stored in the variable AFB VR DAT PAY 13M. The payment of the thirteenth month is triggered when the date that you indicate in this variable is included in the segment period.

Diploma Premium

A payee may be granted an extra earning, called a diploma premium. The earning, PRM DIPL AFB, is entered as positive input and is liable for contributions and income tax.

Note. All elements are delivered as sample data and are not maintained by PeopleSoft. You may modify the rules for these earnings as required by your company’s needs. The only exception is the earning Diploma Premium, which is maintained by PeopleSoft.

Transport Allowances

This section discusses:

Transport allowance amounts.
Other transport benefits.

Transport Allowance Amounts

There are two transport allowance amounts. One is for large cities (Paris and large cities listed in the labor agreement), and the other is for smaller cities (cities with more than 100,000 inhabitants listed in the labor agreement). The allowance amounts have two associated earnings elements: PRM TR 1 NC and PRM TR 2 NC.

Using the Earnings/Deductions Assignment page, assign the earning PRM TR 1 NC for Paris and large cities, or PRM TR 2 NC for cities with more than 100,000 inhabitants.

A payee is allowed to receive only one of these two allowances, so the two earnings are exclusive and should not be triggered for the same payee. The system does not control whether the two earnings are entered simultaneously; it is your responsibility to manage this process.

The earnings for smaller cities are not liable to tax or social security contributions because the limit is equal to the earnings. The other earnings are split into an amount liable to contributions and an amount not liable to contributions.

You assign the allowance to the payee. Global Payroll for France does not check whether the allowance for a large city is being paid to a payee working in a small city. However, the system does check whether the earning is liable for social security contributions and tax.

Other Transport Benefits

Payees may receive other transport benefits. For example, someone may work in Paris and receive an allowance for a Carte Orange.

Some payees may receive a car benefit in kind. A payee receiving an allowance for a Carte Orange, or a transport benefit in kind, is not liable to receive a Premium 1 or Premium 2 transport allowance.

A generation control verifies whether either of these allowances is being paid, and if either is being paid, a Premium 1 or Premium 2 allowance is not triggered, even if requested by the user.

End of Contract Allowances

This section discusses:

Severance allowances.
Severance allowance calculation.
Seniority and 2002.

Severance Allowances

When a payee’s contract is terminated prematurely for a nondisciplinary or economic reason (that is, the payee is laid off), the payee is entitled to a severance allowance as defined by the collective agreement. The allowance is paid in one payment and depends on various conditions, such as term of service and the reason for the layoff. The allowance amount depends on the salary base, years of service, and the payee’s category.

Payees dismissed for disciplinary reasons, including being sentenced in court, receive the statutory allowance defined by the government because this is more favorable than the allowance defined by the collective agreement.

The severance allowance for a nondisciplinary or economic reason is triggered in the IND LIC AFB earning.

See Also

Understanding Allowances

Severance Allowance Calculation

The bracket AFB BR IND LIC contains various elements that are used in the severance allowance calculation. The entitlement depends on the reason that triggered the action. There are a variety of reason codes available in the core application, but only two are used in the bracket calculation: termination for economic reasons or nondisciplinary reasons. Modify this bracket to meet your needs.

If you require additional reason codes, you must include those reason codes in the calculation, within the bracket.

There must be a link between the bracket and the generation control, which triggers the allowance. This is why the generation control AFB GC IND LIC CC should contain the same reasons as those indicated in the bracket.

The bracket allows seven values to be retrieved. One value is retrieved by the bracket itself and six are retrieved in variables. This table lists the variables:

Element Name	Usage
AFB VR LIMIT TECH	Stores the entitlement limit used in the severance allowance calculation for banking technicians.
AFB VR LIMIT CADR	Stores the entitlement limit used in the severance allowance calculation for banking managers.
AFB VR LIMIT > 02	Stores the entitlement limit for all payee categories after 2002.
AFB VR TX LIC < 02	Stores the rate applied to calculate the severance allowance before 2002.
AFB VR TX LIC > 02	Stores the rate applied to calculate the severance allowance after 2002.
AFB BR IND LIC	Stores the multiplier applied to the annual salary (1 for a nondisciplinary reason and 13/12 for an economic reason).
GEN VR IND LIC CC	Stores an indicator with the value of 1 if the bracket is resolved (that is, if the severance allowance defined by the collective agreement is paid). This variable is checked to avoid the payment of the legal severance allowance if the labor agreement severance allowance has already been paid.

Note. Three of the variables in the table relate to changes that were introduced in the year 2002.

The payee classification triggers the correct ceiling for severance allowances paid before 2002. The formula SIT FM CLASSIF AFB stores the value 0 if the payee is a technician and 1 if the payee is a manager. Because PeopleSoft does not know how and where companies store the payee's category, you must update the formula.

Severance Allowance for Nondisciplinary Dismissal

This table lists the parameters that are used for calculating severance allowances:

	Managers	Technicians
Seniority required.	The payee must have one year of seniority to have severance allowance.	Same as managers.
Base for calculation.	Base = 1/13 of the annual basic salary the payee had or would have had during the last 12 months.	Same as managers.
Semester calculation.	The entitlements must be calculated for two periods as follows: The semester must be complete; from 15/09/2002 to 15/03/2003 is a complete semester. From 16/09/2002 to 15/03/2003 is not a complete semester. In case of unpaid absences, the length of service must be reduced for the corresponding calendar days. In case of the semester overlapping 01/01/2002, this semester is a complete semester, and the corresponding allowance is calculated in two parts: the part corresponding to the period before 01/01/2002 and the part from 01/01/2002.	Same as managers.
Complete semester acquired before 01/01/2002.	½ x (13/14,50) for each complete semester acquired before this date. This value is retrieved by the variable AFB VR TX LIC < 02.	Same as managers.
Complete semester acquired from 01/01/2002.	1/5 for each complete semester acquired from this date. This value is retrieved by the variable AFB VR TX LIC > O2.	Same as managers.
Ceilings.	The ceiling is the upper limit for the two-semester sum; the ceiling varies with the hire date. In case of part-time periods, the ceiling is calculated in proportion.	Same as managers.
Hired before 12/31/1999.	24 x (13 / 14,50) = 21,51724 This value is retrieved by the variable AFB VR LIMIT CADR.	18 x (13 / 14,50) = 16,13793 This value is retrieved by the variable AFB VR LIMIT TECH.
Hired from 01/01/2000.	15 This value is retrieved by the variable AFB VR LIMIT > O2.	Same as managers.
Severance allowance amount.	Base for calculation x semester number. The part-time periods must be considered for the calculation. The part-time periods must be considered before 01/01/2002 and from 01/01/2002.	Same as managers.

Severance Allowance in Case of (Economic) Redundancy

This table lists the parameters that are used for calculating severance allowances:

	Managers	Technicians
Seniority required.	The payee must have one year of seniority to have severance allowance.	Same as managers.
Base for calculation.	Base = 1/12 of the annual basic salary the payee had or would have had during the last 12 months. In case of an incomplete year, the annual salary must be rebuilt.	Same as managers.
Semester calculation.	The entitlements must be calculated for two periods as follows: The semester must be complete; from 15/09/2002 to 15/03/2003 is a complete semester, and from 16/09/2002 to 15/03/2003 is not a complete semester. In case of unpaid absences, the length of service must be reduced for the corresponding calendar days. In case of a semester overlapping 01/01/2002, this semester is a complete semester and the corresponding allowance is calculated in two parts: the part corresponding to the period before 01/01/2002 and the part from 01/01/2002.	Same as managers.
Complete semester acquired before 01/01/2002.	½ x Base for each complete semester acquired before this date. This value is retrieved by the variable AFB VR TX LIC < O2.	Same as managers.
Complete semester acquired from 01/01/2002.	¼ x Base x Base for each complete semester acquired from this date. This value is retrieved by the variable AFB VR TX LIC > O2.	Same as managers.
Ceilings.	The ceiling is the upper limit for the two-semester sum; the ceiling varies with the hire date. In case of part-time periods, the ceiling is calculated in proportion.	Same as managers.
Hired before 12/31/1999.	24 This value is retrieved by the variable AFB VR LIMIT CADR.	18 This value is retrieved by the variable AFB VR LIMIT TECH.
Hired from 01/01/2000.	18 This value is retrieved by the variable AFB VR LIMIT > O2.	Same as managers.
Severance allowance amount.	Base for calculation x semester number. The part-time periods must be considered for the calculation. The part-time periods must be considered before 01/01/2002 and from 01/01/2002.	Same as managers.

Bracket for AFB Labor Agreement Severance Allowance Parameters

The bracket AFB BR IND LIC returns values for AFB labor agreement severance allowance parameters. The key for this bracket is GEN VR MOTIF, and the return column is AFB BR IND LIC. The variables AFB VR LIMIT TECH, AFB VR LIMIT CADR, AFB VR LIMIT > 02, AFB VR TX LIC < 02, AFB VR TX LIC > 02, and GEN VR IND LIC CC are populated based on the key.

It is important that you understand the definition of this bracket because PeopleSoft delivers, but does not maintain, this bracket. You must maintain this bracket to ensure that your setup functions properly.

If your organization applies the AFB collective agreement, use the sample values for this bracket and the AFB BR IND DEP RET bracket for the setup of your AFB collective agreement in order to manage your severance and retirement allowances. If you have a collective agreement other than AFB, don’t use these brackets.

If you are applying the AFB collective agreement, and the AFB collective agreement defines new values to calculate the allowance, you may need to change the parameters of the brackets, but you do not need to create any new brackets for this allowance. If you are applying the AFB collective agreement, use the brackets delivered by PeopleSoft (AFB BR IND LIC and AFB BR IND DEP RET).

Note. If you use the AFB BR IND LIC bracket, make sure the variable GEN VR IND LIC CC is set to 1. This variable, along with variable GEN VR IND RET CC used by the bracket AFB BR IND DEP RET, enables the system to know that the allowances are being calculated through a labor agreement brackets setup and that it should not be calculated again by legal setup.

This table contains the sample values delivered with Global Payroll for France:

GEN VR MOTIF (Key)	AFB BR IND LIC (Return)	AFB VR LIMIT TECH (Variable)	AFB VR LIMIT CADR (Variable)	AFB VR LIMIT > 02 (Variable)	AFB VR TX LIC < 02 (Variable)	AFB VR TX LIC > 02 (Variable)	GEN VR IND LIC CC (Variable)
INS	1	21,517241	16,137931	15	0,448275	0,2	1
RED	1,083333	24	18	18	0,5	0,25	1

See Also

Defining Bracket Elements

Defining Variable Elements

Seniority and 2002

The entitlement used to calculate severance allowance changed in 2002. The previous seniority values were frozen at the end of 2001, so the formula containing payee classification automatically switched to a new effective date and calculated the new entitlements when the changes were introduced.

The HR files do not tell you if a person is classified as a technician or a manager. The formula SIT FM CLASSIF AFB stores the value 0 if the payee is a technician and 1 if the payee is a manager.

Note. The system used the formula SIT FM CLASSIF AFB until the end of 2001, and currently uses the formula for retro calculations. For calculating allowances in 2002 and onwards, the system does not use this formula.

You maintain the formula, so the formula needs to be populated so that it can retrieve a value for the payee’s category. By default, the value in the formula is set to 0. This means that if the formula is not updated, it retrieves values for technicians only.

Retirement Allowances

This section discusses:

Retirement entitlement.
Bracket for AFB labor agreement retirement allowance parameters.

Retirement Entitlement

The AFB labor agreement defines some entitlements for the calculation of the retirement allowance. In cases of voluntary retirement, the allowance defined by the collective agreement supersedes the one defined by law. In cases of compulsory retirement, the legal retirement allowance supersedes the allowance defined by the labor agreement, in which case only the legal allowance is calculated. The earning used for the retirement allowance for AFB is IND DRET AFB.

Some retirement entitlement is retrieved from the bracket AFB BR IND DEP RET. The bracket resolves itself to a value for the retirement rate. The search keys are GEN VR MOTIF (that is, the departure reason and GEN VR AN ANC, the number of years of seniority). If the values in these two variables match the search keys (using the Use next lower interpolation method in the look-up rules page of the bracket), the values of the return column are populated by the values indicated in the bracket. The bracket AFB BR IND DEP RET retrieves the rate applied to the average salary of the last 12 months. The variable GEN VR IND RET CC retrieves the value 1 and is used to not trigger the legal retirement allowance (because if the bracket retrieves some values, it means that the retirement allowance for AFB will be paid and then the system should not trigger the legal allowance).

Update the bracket if you want to add some new reason to retrieve the values used for calculating the AFB retirement allowance.

A retirement allowance is triggered by the generation control AFB IND DRET CC. The generation control triggers the retirement allowance calculation for the action or reason indicated in it. The reasons listed in this generation control must be the same as the reasons used as search keys in the bracket AFB BR IND DEP RET.

You maintain the generation control, so you need to populate it with whatever actions or reasons are required.

In cases of compulsory retirement, the law defines allowances. In such cases, the AFB allowance is not triggered.

See Also

Understanding Allowances

Bracket for AFB Labor Agreement Retirement Allowance Parameters

The bracket AFB BR IND DEP RET returns values for the AFB labor agreement retirement allowance parameters. The keys for this bracket are GEN VR MOTIF and GEN VR AN ANC CONT, and the return column is AFB BR IND DEP RET. The variable GEN VR IND RET CC is populated based on the key.

PeopleSoft delivers, but does not maintain, this bracket. You must maintain this bracket to ensure that your setup functions properly.

If your organization applies the AFB collective agreement, use the sample values for this bracket and the AFB BR IND LIC bracket for the setup of your AFB collective agreement in order to manage your severance and retirement allowances. If you have a collective agreement other than AFB, don’t use these brackets.

Note. If you are applying the AFB collective agreement, and the AFB collective agreement defines new values to calculate the allowance, you may need to change the parameters of the brackets, but you do not need to create any new brackets for this allowance. If you are applying the AFB collective agreement, use the brackets delivered by PeopleSoft (AFB BR IND LIC and AFB BR IND DEP RET).

If you use the AFB BR IND DEP RET bracket, make sure that the variable GEN VR IND RET CC is set to 1. This variable, along with variable GEN VR IND LIC CC used by the bracket AFB BR IND LIC, enables the system to know that the allowances are being calculated through a labor agreement brackets setup and that it should not be calculated again by legal setup.

This table lists the sample values delivered with Global Payroll for France:

GEN VR MOTIF (Key)	GEN VR AN ANC (Key)	AFB BR IND DEP RET (Return)	GEN VR IND RET CC (Variable)
VRE	10	0,666666	1
VRE	15	1,25	1
VRE	20	2,5	1
VRE	30	2,5	1

See Also

Defining Bracket Elements

Defining Variable Elements