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VC_T7EG03 - Define EOS Compensation Reasons

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In this activity, you define your compensation reasons for end of service (EOS).

In Egypt, the EOS compensation to be granted to an employee depends on the nature of the service termination. For example, an employee over 60 years of age that retires from the company might be granted a different EOS compensation than a 30-years old employee that is terminated without a valid cause.

This activity allows you to determine the ground rules for establishing the right EOS compensation based on the reason why the employee has left the company.

The settings that you make here are then used by the EGEOS and EGEOP features to determine which compensation reason is applicable based on a decision tree that you determine.

You have defined your:

• Salary components in Define EOS Salary Components

• Calculation rules in Define EOS Calculation Rules

Enter a unique identifier and description for each of your EOS compensation reasons. Then, under the End of Service Compensation Reason Attributes node, specify the ground rules that are applicable to each of your EOS compensation reasons.

When defining your rules, you map your EOS salary components and calculation rules to a particular reason. Additionally, you determine the time unit to be taken as the service duration unit (for example, years or months) and the wagetype that contains the calculated EOS payout amount.

Assume that you are configuring the system to cover EOS gratuity for retirement. You would make the following settings:

EOS SalCom	Calc. Rule	EOS Period	Full/Part	Trm Mt TH	EOS WT	Ser Dur Ut
EGSI	RULE4	Service Duration	Full Payment	0	/521	Year

Those settings mean that the system takes the conditions of RULE4to calculate the EOS gratuity based on the EOS base EGSIand on the service duration (on an yearly basis). Payment is to be made in full to the employee and stored in the wage type /521. Then, to apply the rule, you would insert, for example, as the output of the EGEOSfeature, under the node applicable to the gratuity condition (for example, employee terminated above the age of 60).

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