Understanding Absence Rules

This chapter discusses:

• Absence rules for Malaysia.

• Delivered absence primary elements.

• Annual leave calculation.

• Sick leave calculation.

• Hospitalization leave calculation.

• Maternity leave calculation.

• Paid leave calculation.

• Half-pay leave calculation.

• Leave without pay calculation.

• Absence entitlement calculation on termination.

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

See Also

Viewing the Delivered Elements

Absence Rules

Global Payroll for Malaysia comes with predefined rules for processing absence payments, such as annual leave, sick leave, maternity leave, and half-pay leave. It also comes with rules to calculate unused annual leave on termination. You can easily modify any of these rules to reflect absence and termination policies that are specific to an organization or to labor agreements with employees.

To demonstrate how Global Payroll can process typical absence requirements in Malaysia, PeopleSoft provides four absence entitlements and eight absence take elements. Following the table of primary elements—that is, the absence and take elements—this chapter discusses the interaction of each element with supporting elements.

Delivered Absence Primary Elements

This section discusses:

• Delivered absence entitlements.

• Delivered absence takes.

Delivered Absence Entitlements

Primary absence elements are absence entitlements (entitlement or pro rata) and absence takes. Absence entitlement elements define how much paid time off an organization gives payees for various kinds of absences. They also specify the entitlement period, the calculation frequency, and any automatic adjustments to make to entitlement balances. This table lists the absence entitlement elements for Malaysia:

Delivered Absence Takes

Absence take elements define rules for allowing paid time off. They define the kinds of absences that are valid and the requirements that must be met before entitlement can be used. This table lists the absence take elements for Malaysia:

Note. No delivered entitlements exist for bereavement or study leave because no paid time off is given for those takes.

Annual Leave Calculation

Every employee who works for at least three months is entitled to prorated annual leave. The entitlement is based on calendar days. Global Payroll for Malaysia comes with an absence entitlement for the calculation of annual leave entitlement. The element ANN LVE ENT calculates leave on a per-segment basis. Leave entitlement is based on the years of service within the organization.

Note. No fixed legislation exists to carry over entitlement. Generally, leave balance from one year cannot be carried over for more than two years.

The annual leave entitlement element ANN LVE ENT uses the formula ANN FM ENT FM to calculate leave on a pay segment basis (returning the period annual leave entitlement during the period accrual process). The leave entitlement is based on the years of service within the company.

The formula ANN FM ENT FM resolves like this:

1. The annual leave entitlement value is retrieved from the bracket LVE BR ANNENT.

   This annual leave bracket defines the entitlement that an employee can earn in each month of service. The bracket is used when calculating the entitlement on a per-pay segment basis. The bracket search keys and return-column values are (after the completion of (x) months of service, an employee is entitled to x days of leave):

   Months of Service (LVE VR SERVICE MTH)	Days of Leave (LVE BR ANNENT)
   24	8
   60	12
   99999	16

2. The formula ANN FM ENT FM uses the variable LVE VR SERVICEMTH to return the employee's length of service.

   The length of service is determined by comparing the results of the durations CMN DR SRVSEGBGN and CMN DR SRVSEGEND. Note that the payee's length of service is broken by periods of leave without pay.

3. Accumulator LVE ENTPROB stores the annual leave entitlement during the three months after the hire date. The entitlement is moved to the ordinary annual leave accumulator at the end of this period.

4. The outstanding leave balance is paid off on termination.

5. Formulas LVE FM ENCASH, earning LEAVE ENCASH, and variable LVE VR ENCASHMTH enable you to automatically encash an unused previous-year balance. Variable LVE VR ENCASHMTH determines the month of payment. As delivered, it pays half of the outstanding balance in June.

6. Formulas ANN FM UNUSEDENT and ANN FM PAYUNUSED, earning ANNLVEUNUSED, and variable ANN VR PAYUNUSED enable you to automatically forfeit unused leave. These elements calculate the end-of-year balance. The variable determines whether to pay or forfeit the amount.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

Sick Leave Calculation

Every employee who works for at least six months is entitled to sick leave. The entitlement, which depends on the length of service, ranges from 14 to 22 working days for non-hospitalization and up to 60 days if hospitalization is necessary. An employee cannot claim paid leave while on annual leave, rest day, public holiday, or any nonworking day.

The sick leave entitlement element SCK LVE ENT uses the formula SCK FM ENTITL to grant the entitlement to the employee.

The entitlement is granted each calendar year.

The formula SCK FM TAKE UNIT evaluates whether the day is a working day and whether the employee is scheduled to work. Sick leave that is taken before the minimum service period or that exceeds the maximum limit is deducted from the annual leave before it becomes unpaid leave.

Note. No accrual rules exist for sick leave. The entitlement cannot be carried forward into another term. Also no proration rule exists for sick leave accrual.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

Hospitalization Leave Calculation

Hospitalization leave is calculated in the same way as sick leave. The only difference is that the entitlement is 60 days in a calendar year (provided that the probation is completed). The 60-day limit is controlled by using the variable HSP VR MAX ENT, and you can change the value in this variable to suit the organization's requirements.

Employee eligibility is determined by HSP LVE ENT.

The formula HSP FM TAKE UNIT evaluates whether the day is a working day and whether the employee is scheduled to work. Hospital leave that is taken before the minimum service period or exceeding the maximum limit is deducted from the annual leave before it becomes unpaid leave.

Note. The combination of sickness and hospital leave days cannot exceed 60 days.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

Maternity Leave Calculation

All female employees are entitled to 60 consecutive days of maternity leave.

The maternity leave entitlement MAT LVE ENT uses the formula MAT FM GC ELIG to maintain and calculate maternity leave that employees take. The calculation is based on per-absence days. The absence take MAT LV TAKE maintains the total days for maternity. Employees can earn maternity as paid leave provided that they complete their probation period. The probation period is calculated as 180 days of service from the date of joining. An employee is allowed a maximum of 60 days of leave, which is controlled by the variable MAT VR ENT. A maximum of 60 days of leave is granted with full pay. If the absence day count is greater than 60 days, the days reduce the annual leave (if any is available) before they become unpaid leave.

The formula MAT FM GC ELIG determines whether an employee is eligible for claiming maternity leave. The determination is based on the completion of 180 days of service within the company. If the probation period is not completed, the day take results in unpaid leave. If the ABSENCE DATE is less than the maternity leave eligibility date (date LVE DT MATLVEDT), the formula does not resolve.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

Paid Leave Calculation

Global Payroll for Malaysia comes with elements to calculate two paid leaves:

• Study leave.

  The study leave uses STUDY TAKE and day formula LVE FM PAID UNIT. The system does not use an entitlement for this leave.

• Bereavement leave.

  The bereavement leave uses BER LVE TAKE and day formula LVE FM PAID UNIT. The system does not use an entitlement for this leave.

Half-Pay Leave Calculation

The half-pay leave entitlement element HLF LVE ENT uses the formula NPL FM GC ELIG to verify that the entitlement date (ABSENCE DATE) is within the entitlement period.

Half salary is deducted during days of half-pay leave.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

Leave Without Pay Calculation

The unpaid leave entitlement NPL LVE ENT is the entitlement for Leave Without Pay. No other entitlements or accruals are associated with leave without pay. The system calculates unpaid leave as it occurs.

The absence day take formula NPL FM TAKE UNIT evaluates each day of the absence event.

The payroll process counts the calendar days, workable days, and scheduled hours of leave without pay through duration LVE DR LEAVES. This duration is also used to calculate days of annual leave when annual leave take exceeds annual leave entitlement. For monthly compensated payees, workable days of leave without pay absence are deducted through deduction leave without pay. The rate is calculated in calendar days. For hourly compensated payees, the deduction is Leave Without Pay HRLY. Calendar days of leave without pay are used to prorate entitlement of recurring allowances. Days of leave without pay are considered breaks of service.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

Absence Entitlement Calculation on Termination

This section discusses unused annual leave calculation on termination.

Unused Annual Leave Calculation on Termination

Global Payroll for Malaysia comes with a set of predefined rules for processing absences that are due on termination. These rules are based on Malaysian statutory requirements.

When employees are terminated, they are entitled to a payment for their prorated unused annual leave. The earning element ANN LVE LIEU is the payment in lieu of annual leave entitlement. The calculation of the unused annual leave amount is Unit x Rate where Unit is the accumulator ANN LVE ENT_BAL and Rate is the formula LVE FM PAYRATE.

The accumulator ANN LVE ENT_BAL returns the total annual leave entitlement balance. This accumulator is used to calculate the unused annual leave days that must be reimbursed to the employee.

See Also

Absence Rules

Delivered Absence Primary Elements

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook