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Absence Pay After Termination UK
Absence Pay After Termination UK
Reviewer:
Version: 1.1
1.2. Reviewers
Name Position
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2. EXECUTIVE SUMMARY
Oracle Fusion HCM for United Kingdom provides options which can be configured as per business
requirements to setup Absence Payments after termination and to process them in payroll.
This white paper contains step by step process of configuration of Absences payment after
Termination in Case of Statutory absences (except sickness).
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Table of Contents
1. DOCUMENT CONTROL ....................................................................................... 2
1.1. Change Record ................................................................................................... 2
1.2. Reviewers ........................................................................................................... 2
3. INTRODUCTION.................................................................................................... 5
5. SOLUTION ............................................................................................................. 7
5.1. Pre-Requisites..................................................................................................... 7
5.2. Configuration Details ........................................................................................... 7
7. CONCLUSION- .................................................................................................... 11
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3. INTRODUCTION
All payroll customers in United Kingdom need to process statutory absence payments even after
employee has resigned based on the legislative guideline provide by HMRC. Hence this is one of
the mandatory activities for all UK customers to setup statutory absence payments even after
termination as per the HMRC guidelines. We need to process after termination payments in case
of Statutory Maternity, Statutory Adoption, Statutory Paternity – Birth/Adoption and Statutory
Shared Parental Birth/Adoption.
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4. PROBLEM STATMENT
A mother/adopter/partner can apply for any of the above mentioned Statutory leaves and then
say that they will not return to work because of any reason. In this case also he/she is eligible for
Statutory pay and should receive all their entitlements/pay till the absence end date as per the
rules by HMRC.
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5. SOLUTION
5.1. Pre-Requisites
Before you start setting up the above requirement, Please make sure the below mentioned setups are
completed:
Enterprise Setup
Payroll Definition
Also, make sure you have access of Payroll Administrator and Payroll manager to perform the setup tasks.
Note: Please use the share folder to get the correct information as we are updating sheet based on Oracle
upgrade version
Please follow the steps as given below (I have also attached screenshots for your convenience).
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2. In Absence Plan, change the entitlement end Rule to ‘After Termination’.
3. In Absence Type go to Display Features and Under approval and Processing rule and update
Payable after Termination as ‘Enabled’.
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4. In Absences, go to Rate Definition and look for the created Rate Definition for Statutory
Absences. Uncheck the ‘Calculate Live Rates’.
5. Go to Payroll Process Configuration under Payroll and and Set the flag as Y for the statement
marked below.
6. Create new Assignment Status named as ‘Inactive – Process when Earnings’ with Pay status as
Process when earning and HR status as Inactive
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6. Test Case-
In my condition, I applied an Adoption type Maternity Absence starting from 1st October,
2021 and terminated the employee on 31st October, 2021.
Terminating the employee on 31st will again raise an issue of P45 getting generated so to
stop it from happening we will have to update the P45 Action on Statutory Deduction
calculation card to say ‘Do not Issue’ and after the complete absence payment has been
done we can update it back to actual.
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Process Payroll/Quickpay.(Month after termination)
7. CONCLUSION-
This document successfully covers how to setup and run Absence payments after Termination.
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