(BEL) Entering Additional Data for Belgian Workers

This chapter discusses how to:

• Track Claeys formula calculations.

• Prepare for severance calculations.

• Perform the Claeys calculation.

• Generate Déclaration Immédiate – Onmiddelijke Aangifte (DIMONA) notifications.

• Run the Social Report.

Tracking Claeys Formula Calculations

To track Claeys formula calculations, use the End Contract Type - BEL (END_CONT_TBL_BEL), End Contract Reason - BEL (REAS_END_TBL_BEL), Statute Table (STATUTE_TBL_BEL), Reduced Charged Table (RED_CHRG_TBL_BEL), RSZ Category Table (CONTR_RSZS_BEL), Contract Ending (CONTRACT_END_BEL), and Contract Replacement (CONTRACT_REPL_BEL) components.

If you’re administering a Belgian workforce, you need to set up codes for events or conditions that may play a role in the termination of a Belgian worker’s employment contract, and for the special reasons that are associated with those conditions. You also specify employment contract statutes and substatutes, and track special jobs that allow for lower premiums than are normally required by Belgian labor regulations.

Many of the tables that you set up for these purposes contain information that you use when performing Claeys formula calculations. The Claeys formula is used by employers to calculate the cost of terminating a worker’s contract, based on number of service years, salary, age, seniority, type of employment contract, and so on.

This section discusses how to:

• Enter codes for events and conditions that result in terminating employment contracts.

• Define reason codes for ending employment contracts.

• Set up Belgian employment contract statutes for Claeys calculations.

• Link contract statutes to RSZ categories.

• Record information that is necessary for terminating a Belgian worker.

• Enter a replacement worker for the employment contract.

Pages Used to Track Claeys Formula Calculations

Entering Codes for Events and Conditions that Result in Terminating Employment Contracts

Access the End Contract Type - BEL page.

The end contract type codes can cover a wide range of events, including the employee’s death, a voluntary or involuntary separation from your organization caused by retirement or relocation, or promotion into another job that has a different employment contract associated with it.

Defining Reason Codes for Ending Employment Contracts

Access the End Contract Reason - BEL page.

End Type

Select an end type from the list of end contract type codes that were entered on the End Contract Type page. Note. If you move out of the End Type field, and then decide to change the end type code, clear and reenter the Mandatory Replacement and Number of months fields.

Mandatory Replacement and Number of months

If you selected an end type that requires mandatory replacement, when you move out of the End Type field, the system automatically selects this check box. The system then enters the number of months that you have to replace the current employee with another employee in this contract. If you didn’t select an end type associated with mandatory replacement information, indicate if the reason for ending an employment contract with one employee requires mandatory replacement of the former worker with another worker in the same employment contract. Then enter the number of months that can pass before you have to find the replacement employee. Note. Belgian employment law mandates these requirements.

Setting Up Belgian Employment Contract Statutes for Claeys Calculations

Access the Statute Table page.

Contract Type	Select a contract type for the statute. Values are Employment, Member of the professions, Non applicable, and Self Employed.
Substatute	Select the statute code with which the system should associate this substatute code.

Linking Contract Statutes to RSZ Categories

Access the RSZ Category Table page.

Use the government-defined RSZ categories to maintain social security records for your Belgian employees. Associate each combination of contract type, statute, and substatute with an RSZ category for Claeys formula calculations.

Recording Information that Is Necessary for Terminating a Belgian Worker

Access the Contract Ending page.

Use this page to:

• Specify that the worker’s employment contract has ended, and the reason that your organization has chosen to end the contract.

• Set up and track the worker’s termination notification period.

• Track the worker’s replacement if a replacement is mandatory based on the contract type.

See Also

Defining Reason Codes for Ending Employment Contracts

Entering a Replacement Worker for the Employment Contract

Access the Contract Replacement page.

Replacing ID	Select the ID of the employee who replaces the terminated employee in this contract. The system displays all employees who have been tagged as replacement employees for Belgian employment contracts in your human resources system. Select any applicant or employee with employment terms. If you want to hire someone as a replacing employee, you must create employment terms for that person first.
Replacing Contract Nbr (replacing contract number)	Select the number for this contract, based on the replacing employee ID that you selected.
Mandatory Replacement	Select to indicate that mandatory replacement is required.
End Replacement	If you selected Mandatory Replacement, enter the date for the end replacement. You may want to track this date if you have an earlier than expected end date for a fixed term employment contract.
End Date Mandatory Replacement	Enter the end date for mandatory replacement.

Preparing for Severance Calculations

Employers in Belgium and organizations that employ a Belgian workforce are required to track worker information that is used in the Claeys formula calculation. This calculation determines the amount of severance compensation that your organization must pay a worker if you terminate employment. The formula considers factors such as the employee’s seniority, age, and annual compensation (including salary, vacation pay, and so on) to determine your organization’s liability to the employee.

This section provides an overview of how Claeys calculates severance and of how to prepare for the Claeys calculation, and discusses how to:

• Track additional seniority.

• Enter protected job leave information.

Understanding How Claeys Calculates Severance

The Claeys formula calculates months of severance salary that are owed to an employee as follows:

0.89 × (seniority) + 0.08 × (employee's age) + 0.0013 × [yearly compensation in EUR divided by 1000 × (reference index divided by actual index)] - 2 = notification period, or months of severance salary that is owed to the employee.

For example, an employee with 13 years of seniority with a company, who is 38 years of age, and who is making 82.500 EUR is entitled to 13 months of severance pay. The calculation works as follows:

0.89 × 13 = 11.57 (seniority factor)

0.08 × 38 = 3.04 (age factor)

0.0013 × (82,500 / 1000) × (125.30 / 126.00) = .1066 (compensation factor)

11.57 (seniority factor) + 3.04 (age factor) + .1066 (compensation factor) - 2 = 13 months of severance

Note. The value for compensation is the employee’s yearly compensation. This amount is based on the employee’s monthly wage multiplied by the factor that is designated in the company table for your organization. The Belgian regulated factor amount is approximately 13.9.

How to Prepare for the Claeys Calculation

Preparing for the Claeys employment compensation calculation in PeopleSoft Enterprise Human Resources involves:

• Establishing default company level information that is used for Claeys formula employee compensation calculations on the Company table (COMPANY_TBL), including factoring information defaults for calculating worker seniority, age, compensation, and so on.

  You can override this data at the employee level in the Create Notification component, where you perform the Claeys calculation for a specific worker.

• Entering and maintaining information about the employee’s:

  • Seniority with your organization (stored in the PER_ORG_ASGN table).

  • Age (stored in the PERSON table).

  • Compensation (stored in the JOB table).

• Entering and maintaining employment contract information for the employee on the Contract Data pages (stored in the CONTRACT_DATA table).

• Entering and maintaining end employment terms information regarding required notification periods for workers whom your company may terminate (stored in the CNT_END_TBL_BEL table).

• Maintaining additional information that is used to record Belgian seniority, including protected job leave information (stored in the SENIORITY_BEL table).

See Also

Performing the Claeys Calculation

Pages Used to Prepare for Severance Calculations

Tracking Additional Seniority

Access the BEL Seniority page.

The system uses the seniority information for the employee recorded on this page when performing Claeys formula processing to determine the employee’s months of service. If no information about service months is available on the Seniority page for an employee, the system references the employee’s service months calculation on the Job Data - Job Information page.

For example, seniority in another organization may or may not count towards an employee’s company seniority, depending on your own organization’s business rules, but it does count towards legal seniority that impacts the Claeys calculation. This distinction is particularly important in the case of mergers between organizations where you decide if the seniority of employees from one organization is recognized by the other organization and, if so, to what extent. Using this page, you can specify the number of months of seniority that workers can carry over to your organization from their former companies.

Entering Protected Job Leave Information

Access the Protection page.

Protection Type	Select a protection type to indicate why this leave of absence is protected. Note. Belgian employment law mandates these protection types.
End Date	Enter the date on which the employee will return to work.
Nbr Months (Number of Months)	When you move out of the End Date field, the system calculates the duration of the protected absence. Note. The system calculates only the absence period to the nearest month and doesn’t allow for partial months. If the protected leave duration period is 45 days, the system indicates that the employee’s absence covers one month only.

Note. The system does not take into account protection months when it calculates Claeys formula seniority, in part because protection isn’t limited to absences from work that might impact seniority months.

Performing the Claeys Calculation

After you’ve hired a Belgian employee into your human resources system and established employment contract terms, end employment terms, seniority, and protected leave (protection) information, you can perform the Claeys calculation to determine your potential severance pay liability if you were to terminate the employee.

This section discusses how to:

• Review Claeys calculation variables.

• Calculate the severance amount.

• Run the Notification report.

Pages Used to Perform the Claeys Calculation

Reviewing Claeys Calculation Variables

Access the Create Notification - Base page.

The system displays the employee’s name, employee ID, and the employment record number for your reference. This information comes from the person’s personal data record.

The system displays employment and end employment contract terms information for the employee that you entered on the Contract Data and BEL Contract Ending pages. The system displays the person’s hire date from the Job Data record and indicates whether, according to the end employment terms for the worker, the contract requires mandatory replacement.

Determining the Employee’s Base Compensation Amount (Jaarloon)

Understanding the Above Salary Limit Setting

Note. The compensation currency on the Create Notification - Base and Create Notification -Results pages is the same as the employee’s job currency that is set on the employee’s Job record (JOB).

Determining the Employee's Seniority

Calculating the Severance Amount

Access the Create Notification - Results page.

The system displays the Claeys defaults for Factor Seniority, Factor Age, Correction Factor, Term Correction, and Factor Yearly Base from the Company table for this employee’s company. You assigned the company on the Job Data - Work Location page. Change these factors at the employee level on this page only if you selected the Above sal. limit check box on the Create Notification - Base page.

Note. The system uses these Claeys default factors as part of the Claeys calculation only when the Above sal. limit check box is selected on the Create Notification - Base page.

When you first open this page, the Notification Period and Calculation group boxes are empty. This is where the system displays the results of the Claeys calculation for this employee after you perform the calculation by selecting the Calculation link.

The system displays the calculated notification period for this employee in the Calculation group box and shows how it calculated the notification period in the Notification period group box.

How the System Calculates the Notification Period

The system calculates the notification period in one of two ways depending on whether the employee’s yearly base salary is above the salary limit:

• If the employee’s yearly base salary is above the salary limit (Sal limit check box selected), the notification period that appears in the Calculation group box is based on the calculations that appear in the Notification Period group box.

  The system calculates the notification period based on the employee’s seniority, age, and compensation:

  Seniority term = (months service time / 12) × factor seniority

  Note. For the Seniority Term amount, the system rounds the division by 12 differently for each month.

  Age term = employee’s age on notification start date × factor age.

  Compensation term = (base total / 1000) × (factor yearly base / actual index) × correction factor.

  Total notification period = seniority term + age term + compensation term - term correction.

  You can tell if you’re using the above salary limit method by the way the page looks when you perform the calculation. If the system used the above salary limit method to determine the notification period, it displays the notification period calculation in the Notification Period group box. The Claeys defaults that appear on the page are also available for entry, though these come from the company defaults for the employee’s company and probably shouldn’t be changed.

• If the employee’s base isn’t above the salary limit, (the Above sal. limit check box is cleared), the notification period amount is based on the statute, service time, probation end date, and notification start date—without accounting for any of the Claeys defaults factors that appear on the page. In this case, the system calculates the employee’s notification period as follows:

  If the Statute is "Worker"
  if Notification Start Date <= Effective Probation End Date, then Period is "0"
  if the Service Time is lower than 240 Months (20 years) the Period is "4" 
  else the Period is "8"
  If the Statute is "Employee"
  if Notification Start Date <= Effective Probation End Date, then Period is "7"
  else the Period is (((Service Time / 12) / 5) +1) ×3 (each division is truncated with zero decimals)
  Else the Period is "0"

  The unit of time for the notification period information is based on the employee’s statute type that you established on the Contract Data - Contract Type/Clauses page (CONTRACT2) as defined on the Statute Table page (STATUTE_TBL_BEL). When the statute type is set to Worker, the period unit is in Weeks. When the statute is for an Employee, then the period unit is in Months. If the statute is anything other than worker or employee, the period unit is Days. Whenever the notification start date falls within the probation period, the unit of time is always Days.

Understanding Protection Period Information

The system compares the end date for any of this employee’s qualifying protection periods that you recorded on the Protection table (PROTECTION_BEL) to the notification start date recorded on the Belgian Notification Calculation table (NOTIF_CALC_BEL) to determine the value for the Protection period field. This method of comparison ensures that the employer respects the employee’s protection rights.

Note. The protection period isn’t included in the Claeys calculation process.

The system also displays the Protection End Date field, which is the actual end date of the protection period if there is any protected leave time entered for this employee on the Protection page. This is the date that you set as the end date for any qualifying protection period that you specified on the Protection page.

Working with the End Compensation Amount

The End compensation field displays the resulting Claeys calculation amount that you owe this employee as severance pay, as calculated by the system.

Depending on the notification period unit of time, the system calculates the end compensation by dividing the yearly base total (displayed on the Create Notification, Base page) by 12 if the notification period is months, 52 if weeks, or 365 if days. The result is then multiplied by the notification period amount to arrive at the end compensation amount. For example, the end compensation amount calculation for Josef Timmermans is:

(2391248.62 / 12) × 4 = 797082.87

Any amount that you enter in the Revenue compensation field is added to the total severance amount for the employee.

If you need to change the notification data and rerun the calculation, make your changes and click the Calculation link again. The system clears the old results and calculates the Claeys amount based on your changes.

Warning! The system does not save this data. You must run the Notification report to maintain records for each calculation.

Running the Notification Report

Access the Create Notification - Report page.

After completing the Claeys calculation, run the termination notification report. The report page displays the employee’s ID and record number together with the notification period that is calculated by the Claeys formula.

See Also

(BEL) Entering Default Information and Salary Factors

Generating DIMONA Notifications

This section provides an overview of DIMONA notifications and discusses how to:

• Create DIMONA notifications.

• Review DIMONA notifications.

Understanding DIMONA Notifications

The Belgian E-government Social Security plan requires companies to report social insurance data for workers employed under Belgium regulations. DIMONA notifications contain the required data.

The Create DIMONA Notification process (HRBEL_DIM_AE) generates DIMONA notifications as flat files. The PeopleSoft system supports employee hire and employee termination DIMONA notifications, including corresponding updates and cancellations. You can generate notifications for a single employee, for a company, or for a business unit.

After you have generated flat files containing the notifications, you can transfer the flat files to the National Office for Social Security (NOSS), known as RSZ or ONSS in Belgium, using the NOSS file transfer protocol server. After you transfer data to the NOSS, you can consult and update employee data by using the NOSS database system.

Pages Used to Generate DIMONA Notifications

Creating DIMONA Notifications

Access the DIMONA Notification page.

Report Request Parameters

Restart Information

Demand Information

Enter information about the person who is sending the notification.

Contact

HRBEL_DIM_AE Process

The HRBEL_DIM_AE process selects all employees that have been hired or terminated, based on personal and job data, and creates a notification for them. The process creates notification flat files according to the NOSS standard, and names the file according to NOSS naming conventions.

Reviewing DIMONA Notifications

Access the Review Notification page.

Process Date	(Optional) Enter the date that the notification was processed.
EmplID	(Optional) Enter the employee ID of the notification to review.
Hire Date	(Optional) Enter the hire date of the notification to review.
NOSS Portal	Click to access the NOSS website. From this page, you can log on to the NOSS web server to check the latest information about the DIMONA notification or other information about Belgian social security.
Status	(Optional) Select the status of the notification to review: Cancel, Delete, Done, or Re-do.
Action	(Optional) Select the action reported by the notification: Cancel, Hire, Terminate, or Update.
Select with Matching Criteria	Click to populate the Payees group box with information on the notifications that match your criteria.
DIMONA Nr (DIMONA number)	Enter the notification number that is assigned by NOSS.

Update and Termination Notifications

Using this page and the DIMONA Notification page, you can create update and termination notifications.

To create single employee update and termination notifications:

1. Access the Review Notification page.

2. Enter the process date and the employee ID.

3. Click Select with Matching Criteria.

4. Set the notification action to Update or Terminate.

5. Set the notification status to Re-do.

6. Save the page.

7. Access the DIMONA Notification page.

8. Select the Re-start check box and enter the process date in the Start Date field.

9. Run the HRBEL_DIM_AE process.

To create update and termination notifications for more than one employee, follow the same steps as for a single employee notification, except:

• In step 2, enter the process date and any additional criteria.

• Perform steps 4 and 5 for all employees to include in the notification.

Running the Social Report

This section explains how to generate the Belgian Social report.

Page Used to Run the Social Report