Calculating Absence Entitlements on Termination
PeopleSoft delivers a set of predefined rules for processing absences due to termination. PeopleSoft designed these rules in accordance with Singapore statutory requirements.
This topic discusses how to calculate unused annual leave on termination.
When employees are terminated after three months of continuous service, they are entitled to a payment for their prorated unused annual leave. The ANN LIEU earnings element is the payment in lieu of annual leave entitlement. The calculation of the unused annual leave amount is Unit × Rate:
Unit: Formula TER FM ANN BAL (unused annual leave balance in days).
Rate: DAILY RT (average daily rate).
The TER FM ANN BAL formula returns the total leave balance for an employee who has been terminated. This formula is used to calculate the unused annual leave days that must be reimbursed to the employee. If the termination date plus one day (date TER DT DATE + 1) is greater than or equal to the annual leave eligibility date (date ANN DT ELIG) then the total of the annual leave balance accumulators (ANN STAT ENT_BAL and ANN GENL ENT_BAL) is stored in formula TER FM ANN BAL.
Note: When the employee is terminated with Action Reason code — CON (misconduct) or GMI — Gross Misconduct, the entitlement will not be paid to the employee. In all other cases, the entitlement will be translated to monetary amount and reimbursed to the employee.