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VV_T511K_LEARH - Maintain Constant to consider the Leave Encashment Exemption for Rehires

In this customizing activity, you can maintain the value of the LEA exemption for rehire (LEARH) payroll constant. This constant holds the value based on which the system decides whether the Leave Encashment Exemption is considered or not for a rehired employee in the organization, when a forced retro payroll is run from the month of termination of the employee’s previous employment with the organization.

1. Enter one of the below two values in the Value field for the payroll constant.
1. 0 – When an employee is rehired and a forced retro is run from the termination month of the employee’s previous employment, the system nullifies the Leave Salary Exemption(/4E7) wage type, thus ignoring the exemption that the employee was eligible for from the previous employment.
2. 1 – When an employee is rehired and a forced retro is run from the termination month of the employee’s previous employment, the system considers the exemption stored in the Leave Salary Exemption(/4E7) wage type which is brought into Prev exemp u/s10 (/4VB) wage type for further processing of tax calculations in the Leave Encashment Taxation(INLEA) payroll function.
2. Save your entry.