Beruflich Dokumente
Kultur Dokumente
Saudi Arabia
Absence Management Implementation and Functional
Considerations
OR AC LE WHI TE P AP E R | AP RI L 2016
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Table of Contents
Introduction 2
Overview 2
Absence Transactions 3
ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR SAUDI ARABIA ABSENCE MANAGEMENT IMPLEMENTATION AND FUNCTIONAL
CONSIDERATIONS
Introduction
This paper provides examples, based on statutory requirements, of the setup tasks required for creating Saudi-specific absence elements
and absence management for your enterprise from Release 10 onwards.
This paper assumes that the following associated documents have been read:
Overview
With absence management you can manage worker absences and corresponding entitlements. You can create absence types based on
predefined absence patterns, and associate them with absence plans. You must associate an absence element with an absence plan if
you wish to transfer the following information for payroll processing:
You can process the payments in Oracle Fusion Global Payroll or use HCM extracts to transfer the information to a third-party payroll
application for processing.
The following objects need to be defined:
Rate Definitions
Absence Elements
Derived Factors
Eligibility Profiles
Absence Plans
Absence Reasons
Absence Certifications
Absence Types
Absence Categories
To support the following types of absence:
Annual leave
Sick leave
Maternity leave
Paternity leave
Marriage leave
Pilgrimage leave
Bereavement leave
Examination leave
Unpaid leave
Absence Transactions
The following information is based on how users record absence information.
The assessment date for all types of leave, except Maternity or Paternity, would normally be when the absence begins.
The assessment date for Maternity or Paternity leave would normally be based on a qualification date.
For example, statutory maternity leave is for 60 working days, and 24 working days are to be taken prior to the expected birth of the child.
The assessment date would be based on a qualification date. The qualification date formula would be the expected birth date minus 28
calendar days, or 24 working days based on a 6-day working week.
Annual Leave
To record annual leave the user must enter the start and end dates, but start and end times are optional.
Open ended annual leave is not expected.
Sick Leave
To record sick leave the user must enter the start and end dates, but start and end times could be optional.
The end date would be entered when the person returns to work so open ended sick leave is allowed.
Maternity Leave
To record maternity leave the user must enter the expected date of childbirth and the planned start and end dates of leave.
As statutory maternity leave has to start no later than 24 working days before the expected date of childbirth there is no earliest start date.
The latest start of leave should be calculated as 28 calendar days prior to the expected date of childbirth.
Actual date of childbirth is required.
Actual start date will be required and actual return date will be entered when the person returns to work, so open ended maternity leave is
allowed.
Paternity Leave
To record paternity leave the user must enter the expected date of childbirth and the planned start and end dates of leave.
Actual date of childbirth is not required.
Actual start date and actual return date will be required, but start and end times are optional.
Marriage Leave
To record marriage leave the user must enter the start and end dates, but start and end times are optional.
Open ended marriage leave is not expected.
Pilgrimage Leave
To record pilgrimage leave the user must enter the start and end dates, but start and end times are optional.
Open ended pilgrimage leave is not expected.
Bereavement Leave
To record bereavement leave the user must enter the start and end dates, but start and end times are optional.
Open ended bereavement leave is not expected.
Examination Leave
To record examination leave the user must enter the start and end dates, but start and end times are optional.
Open ended examination leave is not expected.
Unpaid Leave
To record unpaid leave the user must enter the start and end dates, but start and end times are optional.
Open ended unpaid leave is not expected.
For further information on Unpaid leave processing refer to Upgrade to Global Absences and Functional Considerations (UAE, Saudi
Arabia, Kuwait) (Doc ID 1918703.1)
You must specify a periodicity, such as hourly or weekly, for the returned rate and each rate contributors. When you use the rate in a
formula, you can, however, override the default periodicity.
1. Converts all values that contribute to the rate into a single periodicity.
2. Converts that rate into the return periodicity.
For example, for a rate with a periodicity of weekly using the annualization conversion formula, the rate calculation does the following:
1. Calculates an annual figure from the value and periodicity of each contributing earning and deduction.
2. Converts the annual figure into a weekly value.
52 weeks in a year
12 months in a year
260 working days in a year
To specify different conversion rates, you can define your own formula using the Rate Conversion formula type.
For example the formula provided for an annualized rate conversion includes the calculation based on 260 working days in a year, a 5
day working week, whereas a 6 day working week equates to 312 working days in a year. The following is an example of how to create a
formula based on a 6 day working week:
Navigate to task Manage Fast Formulas in the Payroll Calculations work area
Search for a formula of Type equal to Rate Conversion
Select ANNUALIZED RATE CONVERSION
Copy Formula Text (do not edit original fast formula)
Create a new fast formula using Create icon at top of search results table
Enter Formula Name
Select Type as Rate Conversion
Enter a Description
Select an existing Saudi Arabia Legislative Data Group
Enter the Effective Date from which fast formula can be used
Insert Formula Text copied from the original ANNUALIZED RATE CONVERSION fast formula
Edit Formula Text by changing all instances of 260 to 312
Save and Submit the fast formula
Compile the fast formula
Enter Name for the element. Note: This name is used as the prefix for all supporting payroll definitions that are created, for
example elements, balances and formula
Enter a Reporting Name Note: this is the name shown when the element is displayed on reports
Enter a Description for the element
Enter the Effective Date from which the element can be used
Enter the Currency Note: the default value, based on the LDG previously selected, is Saudi Riyal
Select the calculation units as Days
Select the appropriate value from the table below for type of absence information
Select Next
The review page summarizing the values entered will be shown. If the details are correct press Submit button to create the element and its
associated payroll definitions, otherwise correct the information before submitting.
After creating element eligibility records via the Element Summary click Done.
Derived factors define how to calculate certain eligibility criteria that change over time, such as a person's age or length of service. You
add derived factors to eligibility profiles and then associate the profiles with objects that restrict eligibility.
The following derived factors can be created via the Manage Derived Factors task:
Age
Length of service
A combination of age and length of service
Compensation
Hours worked
Full-time equivalent
For example when annual leave is based on length of service, 21 days for service less than or equal to 5 years, 30 days for service over 5
years, create a derived factor.
If you cannot define the required criteria as a derived factor create a user-defined criteria. For example Pilgrimage leave will only apply to
those workers whose Religion is Islam, and Religion is not included as one of the types of derived factor.
Create eligibility profiles to define criteria that determine whether a person qualifies for objects that you associate the profile with. You can
associate eligibility profiles with objects in a variety of business processes.
As the majority of absence types will be applicable to all workers it is suggested that the only eligibility profiles that need to be created are
for:
Maternity leave
Paternity leave
Pilgrimage leave
Qualification - A Qualification Plan is a form of Absence Plan in which the employees entitlement to time off is not earned on a
period basis but is granted to them. Non-accrued plans are typically used for entitlements other than vacation (e.g. sickness,
maternity, family leave, jury duty, military service).
No Entitlement A Plan which has neither Accruals nor Entitlements defined. Commonly this type of plans is used to track Loss
of Pay or Unpaid Absences.
Once defined, an Absence Plan can be associated to one or more Absence Types.
See Implementing Absence Management: Absence Plans
In Saudi Arabia plans need to be created to support the following absence types:
Annual leave
Sick leave
Maternity leave
Paternity leave
Marriage leave
Pilgrimage leave
Bereavement leave
Examination leave
Unpaid leave
Please note that not all attributes are applicable for each type of absence plan.
The following is the suggested setup for each absence plan based on statutory requirements. Use this table as a guideline as to what to
enter for Plan Attributes.
Plan Attributes
Annual Maternity Paternity Marriage Pilgrimage Bereavemen Examination Unpaid
Sick leave
leave leave leave leave leave t leave leave leave
No
Plan Type Accrual Qualification Qualification Qualification Qualification Qualification Qualification Qualification
entitlement
Navigate to task Manage Absence Plans in the Absence Administration work area
Create a new absence plan using Create icon at top of search results table
Enter Effective As-of Date
Select Legislation Saudi Arabia
Select Plan Type as suggested in the table above and Continue
Go to Plan Attributes tab
Enter Plan name
Select Legislative Data Group
Select Status Active
Select Plan UOM Days
Select Type as suggested in the table above
Select Anniversary Event Rule, if applicable, as suggested in the table above
Enter Term Duration, if applicable, as suggested in the table above
Select Term Duration UOM, if applicable, as suggested in the table above
Select Overlap Rule, if applicable, as suggested in the table above
The following is the suggested setup for each absence plan based on statutory requirements. Use this table as a guideline as to what to
enter for Participation
Participation
Annual Maternity Paternity Marriage Pilgrimage Bereavement Examination Unpaid
Sick leave
leave leave leave leave leave leave leave leave
Date of Date of
Qualification Absence Start Absence Start Absence Absence Start Absence Start Absence Start Absence
Childbirth or Childbirth or
Date Rule Date Date Start Date Date Date Date Start Date
Placement Placement
As previously As previously As previously
Eligibility null null null null null null
created created created
Go to Participation tab
Select Qualification Date Rule as suggested in the table above
Select Entitlement End Rule As of Event
Go to Accruals tab
Select Accrual Definition Matrix
Enter Payment Percentage 100 %
Select Accrual Proration Rule None
Select Accrual Method Front-loaded
Select Accrual Frequency Source Person primary frequency
Select Accrual Vesting Rule None
Select Ceiling Rule None
Select Carryover Rule Include in matrix
Select Carryover Proration Rule None
Select Carryovers expire after specific time
Enter Duration 90
Enter UOM Days
Select Allow Negative Balance
Create Accrual Matrix using Create icon at top of table. For example entitlement for annual leave could be based on a matrix using a
defined derived factor where:
o Years of service is less than or equal to 5 years = Pay Rate Factor 100% and Days equals 21, and
o Years of service is more than 5 years = Pay Rate Factor 100% and Days equals 30, and
o Annual leave can be carried forward on the anniversary of their hire date or the 1st January depending on company policy, but
must be taken by the end of 90 days
o Any carried forward leave not taken by the allotted time cannot be paid (unless their contract states otherwise)
The following is the suggested setup for each absence plan based on statutory requirements. Use this table as a guideline as to what to
enter for Entitlements.
Entitlements
Bereavement
Annual leave Sick leave Maternity leave Paternity leave Marriage leave Pilgrimage leave
leave
Entitlement Absence Start Absence Start Date Qualification date Qualification date Absence Start Date Absence Start Date Absence Start
Absence Types will tie the actual transaction of scheduling and recording absences to the plans that process the absence for payment
and balance maintenance.
Patterns provide high level control of how the application collects date information and how certain data is displayed.
Generic absence
Childbirth or Placement
Illness or Injury
TYPE ATTRIBUTES
Create
Pilgrimage Bereavement Examination Unpaid
Name Annual leave Sick leave Maternity leave Paternity leave Marriage leave
leave leave leave leave
General Attributes
Event Type N/A N/A Child birth Child birth N/A N/A N/A N/A N/A
Postnatal Postnatal
complications complications
Miscarriage Miscarriage
Prenatal Prenatal
Special Conditions N/A None complications complications N/A N/A N/A N/A N/A
Premature Premature
childbirth childbirth
Duration Rules
Maximum Duration
None Warning Error Error Error Error Error N/A N/A
Alert
Maximum 130 for female
N/A 120 60 1 3 7 N/A N/A
Duration 3 for male
Partial Day Unlimited Unlimited Not allowed Not allowed Not allowed Not allowed Not allowed Not allowed Not allowed
Navigate to task Manage Absence Types in the Absence Administration work area
Enter Effective As-of Date
Selection Legislation Saudi Arabia
Select relevant Pattern as suggested in the table above and Continue
Go to Type Attributes tab
Enter Name
Select Event Type, if applicable, as suggested in the table above
Refer to Implementing Absence Management: Absence Types, Reasons and Categories for any other details that are required.
Prerequisites:
Work schedule created for a six day working week and assigned to the person
New ANNUALIZED RATE CONVERSION Formula created for 312 working days per year based on a six day working week
Navigate to task Manage Rate Definition in the Payroll Calculations work area
On the Manage Rate Definitions page, click Create
On the Create Rate Definition, select Derived Rate as the Category
Enter the Effective Start Date and select the Legislative Data Group
Select OK to open the Create Rate Definition page
Select Balance as the Contributor Type to open the Create Rate Contributor page
On the Create Rate Contributor page select Subject to Social Insurance as the Balance Name and Relationship Period to Date as
the Balance Dimension
Select Annually as the Periodicity
Click on Save and Continue
Submit the Rate Definition
The following set of elements are created, based on the element name originally given
Go to Entitlements tab
Select Entitlement Definition Type Matrix
Enter Entitlement Start Date as Absence start date
Add Qualification Band Matrix using Add icon at top of table
o Enter Sequence 1
Add Qualification Details using Add icon at top of table. For example entitlement for sick leave could be based on a matrix where:
o Sequence 1 = Duration 30 Days and Payment percentage is 100%
o Sequence 2 = Duration 60 Days and Payment percentage is 75%
o Sequence 3 = Duration 30 Days and Payment percentage is 0%
Enter an appropriate Detail Name for each sequence and select Save and Close when the sequence is complete.
Create a new absence type using Create icon at top of search results table
Enter Effective As-of Date
Selection Legislation Saudi Arabia
Select Pattern as Illness or Injury and Continue
On the Manage Absences and Entitlements page, in Absence Records section click Add
The Duration will be defaulted based on the calculation of working days between the start and end date
Select Submit to create the Absence record, which will be shown in the Qualification Plans section
This information will be used to calculate the payments due for Sick leave in the payroll process
C ON N E C T W I TH U S
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