Explore the available features to take full advantage of the new help platform!

Deducting days before/after employees' hire or termination date

Prev Next
  • PT

  • ES

  • AO

  • CV

  • MZ

  • ST

  • GW

  • Professional

  • Executive

  • Public Sector

  • Omnia

  • Evolution


When you run a salary or end-of-contract processing run for a period that includes an employee's hire date, contract end date, or dismissal date, the application automatically deducts the days before the employee's start or after their departure.

This process includes all system earnings, as well as all earnings assigned to the employee in their record. Earnings assigned in monthly changes or directly during processing are not included in this process.


Deducting Days

This deduction is made according to the configuration specified in the Parameters of the Fiscal Year, on the Hiring/End of Contract tab.

In this area, the Automatically deducts days before hiring and after departure option is available; when enabled, it lets the application perform all calculations. If this option is not enabled, you can manually post absences and/or pay for the days not worked.

In addition to this option, calculation formulas for deducting absences are also available, namely:

Uses the calculation formula for absences in days

Method

Full-time/ Ignore Part-time Schedule

Part-time

Always pays days/hours worked

MonthlySalary = (MonthlySalary /AbsenceDays) x (TotalPeriodDays - DaysNotWorked)

MonthlySalary = (TotalMonthlyHours - HoursNotWorked) x HourlyRate

Always deducts days/hours not worked

MonthlySalary = MonthlySalary - ((MonthlySalary /AbsenceDays) * DaysNotWorked)

MonthlySalary = (TotalMonthlyHours - HoursNotWorked) x HourlyRate

Uses the calculation formula for absences in Hours

Method

Full-time/ Ignore Part-time Schedule

Part-time

Always pays hours/days worked

MonthlySalary = (WeeklyHours / 5 x CalculationDays - HoursNotWorked) x HourlyRate

MonthlySalary = (TotalMonthlyHours - HoursNotWorked) x HourlyRate

Always deducts days/hours not worked

MonthlySalary = MonthlySalary - (HourlyRate x HoursNotWorked)

Uses a penalty formula depending on whether more or less than half the month was worked

With this option enabled, the ERP follows this behavior:

  • If the employee works more than half the month, the Always deducts days/hours not worked formula is used;

  • If the employee works less than half the month, the Always pays days/hours worked formula is used.

For part-time employees, the deduction of days is calculated based on the days actually worked.


Variables

When using formulas, it's important to keep in mind how the following variables are calculated:

AbsenceDays

The AbsenceDays variable takes on the value set in the "Days 30" column of the "Periods" table.

TotalPeriodDays

The TotalPeriodDays variable equals the total number of days (calendar days) in the period.

CalculationDays

There are three ways to obtain the CalculationDays value, depending on the processing type assigned to the employee:

  • Variable Working Days: the Working Days field of the processing period number associated with the employee;

  • Fixed Days (30): the Days 30 field of the processing period number associated with the employee;

  • Fixed Working Days: 52 x 5 / 12

DaysNotWorked

The DaysNotWorked variable is obtained as follows:

  • Hiring: Days Not Worked = difference in days between the period's start date and the employee's hire date. For example, an employee hired on 13/01/2021 did not work 12 days;

  • Dismissal/EndOfContract: Days Not Worked = difference in days between the departure date* and the end date of the period in question. For example, an employee dismissed on 13/01/2003 did not work 18 days.

WorkingDaysNotWorked

The WorkingDaysNotWorked variable is obtained as described above for DaysNotWorked, and, for employees with a processing type equal to Variable Working Days or Fixed Working Days, Saturdays, Sundays, and public holidays that fall within the days not worked are subtracted from this value:

  • Hiring: between the period's start date and the employee's hire date;

  • Dismissal/EndOfContract: between the departure date and the end date of the period in question.

Note: We consider the departure date to be the departure date, the dismissal date, or the contract end date assigned to the employee in their record, whenever at least one of these falls within the period to be processed.

The dismissal date always takes precedence over the contract end date, even if both are filled in on the employee's record. Normally, if both dates are filled in, it's because they correspond to the same point in time. If they differ, this means the departure did not actually take place on the contract end date, and the dismissal date is used instead.

HoursNotWorked

For use with the calculation formula for absences in hours, this variable is obtained as follows:

Schedule - Full-time

  • Processing type = Fixed Days 30 HoursNotWorked = (WeeklyHours / 5) x DaysNotWorked

  • Processing type = Variable Working Days/Fixed Working Days HoursNotWorked = (WeeklyHours / 5) x WorkingDaysNotWorked

Part-time Schedules

  • For any processing type = (Horas semana / WeeklyWorkDays) x DaysNotWorked

  • Calculated based on the average of the total weekly hours and the working days of the week.

Example 1: employee hired on 13/01/2021 with processing type = Variable Working Days:

HoursNotWorked = 40/5 * 7 (12 days – 2 weekends, 1 public holiday)

Example 2: employee dismissed on 13/01/2021 with processing type = Variable Working Days:

HoursNotWorked = 40/5 * 14 (18 days – 2 weekends)

Example 3: employee hired on 13/01/2021 with processing type = Fixed Days (30):

HoursNotWorked = 40/5 * 12

Example 4: employee dismissed on 13/01/2021 with processing type = Variable Working Days:

HoursNotWorked = 40/5 * 18

Example 5: employee (part-time) working 25 hours per week over 4 days/week

(25/4) x DaysNotWorked

TotalMonthlyHours

Count of the employee's actual monthly schedule hours for the calculation month.