Oracle Fusion Human Capital Management for

Canada
Absence Management
ORACLE WHITE PAPER | DECEMBER 2017
Table of Contents

Release 1

Document Updates 1

Document Updates 1

Change Record 1

Introduction 1

Absences in Canada 1

Absence Management and Payroll 1

Overview of Process 1

High-Level Steps 2

Navigation 2

Creating Rate Definitions 3

Creating Absence Elements 3

Type of Absence Information to Transfer to Payroll 3

Absence Payments 4

Unpaid Absences 4

Canadian Rules 5

Base Element Questions 6

Final Disbursement Element Questions 7

Discretionary Disbursement Element 8

Elements Created (Base and Shadow) 9

Element Eligibility 10

ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

 Costing Absence Elements 10

Overriding Default Absence Element Value Definitions 11

Creating Derived Factors 13

Creating Eligibility Profiles 13

Creating Absence Plans 14

Participation 15

Accruals 16

Entries and Balances (Configuring the Transfer of Absence Information to Payroll) 17

Creating Absence Types 17

Type Attributes 17

Plan and Reasons 18

Display Features 18

Enrolling Employees in Absence Plans 19

Processing Accruals 20

Processing Accruals in the UI 20

Withdrawing Accruals in the UI 21

Processing Accruals in Batch 21

Withdrawing Accruals in Batch 21

Creating Employee Absence Records 22

Absence Record Entry 22

ROE Events 22

Absence Calculation Cards 22

Element Entries 24

ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

Processing Payroll 25

Viewing Absence Balances 25

Troubleshooting 25

ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

Release
The absence template functionality for Canada is available starting with Release 12.

Configuration for prior releases must refer to the white paper located here:
» Information Center: Fusion Human Capital Management - Canada (Doc ID 2102586.2)
CA – Absence tab > White Papers > Configuring Oracle Fusion Absence Management for the US (Rel 10 &
later) and Canada (Rel 10 & 11 only)

Document Updates

Document Updates
This document is based on the most current application release as of the document’s publication date. Content is
updated as needed only to reflect major changes to existing features or when significant new features are added for
the CA localization. For this reason, it is possible that some minor UI differences will exist between the version being
implemented and the version described in this document.

Change Record
Date Description of Change

August 2017 Document creation.

Introduction
This paper outlines the setup tasks for creating and processing absences in Canada. Because the majority of the
setup for processing absences is done in the Oracle Fusion Absence Management system, you must be familiar
with Absence Management prior to implementing absences in Canada. This paper outlines the tasks for Canada,
but you must refer to the Global Absence Management documentation for complete details of the global feature.
The documentation can be found on the Oracle Help Center at the link below.

» Absence Management (Implementing Absence Management)

http://docs.oracle.com/cloud/latest/globalcs_gs/globalcs_impl.htm

Absences in Canada
Rules and leave plans for absences vary throughout Canada. Employers can configure plans based on their own
requirements.
Absence element creation for Canada supports the uptake of the four global absence types:

» Vacation
» Sickness
» Maternity
» Other

Absence Management and Payroll

Overview of Process
Global Absence Management gives customers the ability to manage various types of absences.

1 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR THE US BALANCE INITIALIZATION

The majority of the setup for processing of absences is in the Absence Management system. There is an integration
between the Absence Management system and payroll. Payroll requires specific information, which is passed from
the absence system to payroll. This information is used to calculate the absence payment in payroll.

The absence element is created in payroll and creates the calculation components the Calculation Information
Repository (CIR) requires. When defining the absence plan, the absence element is selected within the plan itself.
When the absence record is entered for an employee, the person’s absence calculation card is created and the
absence plan is linked to the calculation component on the person's calculation card. Once the absence is
approved, the daily and summary breakdown information is automatically transferred to payroll.

You can then process the payroll that includes these absence entries and view the resulting absence balances on
the person's Statement of Earnings. After you process and archive payments, you can view the resulting absence
balances on the person's payslip, as well as payroll reports.

High-Level Steps
To configure and process absences in Canada, the high-level list of the absence and payroll steps are included in
the table below.

These steps are in sequential order, as some of the setup may be used in a subsequent step.

Procedure Action Required

Creating Rate Definitions Create rate definitions for calculating absence payment, accrual and liability balances.

Creating Absence Elements Create an absence element for each absence plan that transfers absence payment
information for payroll processing.

Creating Derived Factors Create derived factors to define how to calculate certain eligibility criteria that changes over
time.

Creating Eligibility Profiles Create eligibility profiles to define criteria that determine whether a person qualifies for
objects that you associate with the profile.

Creating Absence Plans Create an absence plan and ensure the following is defined for payroll:
» You select the Transfer absence payment information for payroll processing check box.
» You select the element for the plan in the Element field.

Creating Absence Types Create absence types and associate them to the absence plans.

Enrolling Employees in Absence Plans Enroll employees in the absence plan, if explicitly required.

Processing Accruals If an employee is enrolled in an accrual plan, you must run the accrual process.

Creating Employee Absence Records Record an absence for the employee. At this point the absence information is transferred to
payroll (assuming the absence is approved and the option to transfer information to payroll
is configured).

Processing Payroll Process the payroll that includes the absence entries.

Viewing Absence Balances View the employee’s absence and accrual balances in the SOE, payslip, cheque advice,
and reports.

Navigation
Use the following tasks located in the related work areas to configure the objects to process absences in payroll:

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Object Set Up Task Work Area

Rate Definition Manage Rate Definitions Absence Administration, Payroll

Calculation

Absence Element Manage Elements Payroll Calculation

Derived Factors Manage Derived Factors Absence Administration

Eligibility Profile Manage Eligibility Profiles Absence Administration

Absence Plan Manage Absence Plans Absence Administration

Absence Types Manage Absence Types Absence Administration

Creating Rate Definitions

Rate definitions are used in the calculation of the following:

» Absence payment amounts for the employee

» Accrual and liability balances

» Salary reduction amounts

Use the Manage Rate Definitions task, in the Absence Administration or Payroll Calculation work areas, to create
rate definitions.

Creating Absence Elements

Create an absence element for each absence plan that transfers absence payment information for payroll
processing. When you create the plan, you must select the absence element to link it to the absence plan.

Type of Absence Information to Transfer to Payroll

When you create an absence element, you define the type of information to transfer to Payroll from Absence
Management. This also is associated to the type of absence plan you define in Absence Management. The table
below refers to the type of absence information to transfer to payroll, as defined in the absence element template.

Type Examples

Accrual Balances A vacation accrual plan that isn’t processed through payroll. The leave isn’t shown separately on
the statement of earnings.

Accrual Balances and Absences A vacation accrual plan that is processed through payroll. The leave is shown separately on the
statement of earnings.

Qualification Absences A maternity plan that is processed through payroll. The leave is shown separately on the
statement of earnings.

No Entitlement Absences A no entitlement leave plan that is processed through payroll. The leave is shown separately on
the statement of earnings.

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Absence Payments
You may choose to reduce the employee’s regular earnings by the full absence payment or a defined rate. This
option is defined in the Absence Payments section of the absence element template. Select the appropriate option
as defined below for salaried employees.

Payment Option Description

Reduce regular earnings by Does not require a rate definition.

absence payment

Select rate to determine absence
deduction amount
Select this option if your absence payment is at a different rate than your salary
reduction. If you have selected this option, use the displayed field user to select the rate
to determine the absence deduction amount. If you do not select a rate, the payroll
calculation automatically reduces the salary by the regular pay rate of the employee.
Note: Select this option if you are creating the element for an unpaid absence.

Unpaid Absences
When creating the element for an unpaid absence (that is linked to the absence plan), you must select the option
"Select rate to determine absence deduction amount". This will report the unpaid absence element earnings on the
payslip, as well as the SOE.

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Canadian Rules
The absence element template contains Canadian specific rules that require user input. These rules are applicable
for all the secondary classifications of absence elements. The tax processing type and Record of Employment
(ROE) Employment Insurance (EI) rules on the absence template are the same rules that are displayed on the
earnings template.

The additional questions specific to Canada offer variations for the following:
» Tax processing type for absence payments
» ROE options for EI allocation and EI hours
» Options to designate a different tax method, EI allocation and EI hours for the final disbursement payments,
if final payments are enabled
» Options to designate a different tax method, EI allocation and EI hours for the discretionary payments, if
discretionary payments are enabled
» Option to create a Record of Employment Notification event for the absence
The above options are further described in the table below.

Purpose Element Template Element Template Question Description

Section

Tax processing type for Tax Processing What type of taxation applies to this Specifies the type of taxation for the
absence payments element? absence element.

ROE EI earnings Record of Employment If this element is insurable, how are the Specifies how the EI earnings are
allocation earnings allocated? allocated, by date earned or date paid.
This is required for ROE processing
and defaults to date earned.

ROE EI hours Record of Employment Are there insurable hours associated Specifies if there are EI hours
with this element? associated with the element or not.
This is required for ROE processing
and defaults to Yes for the base
absence element. However, it defaults
to No for disbursement and final
disbursement element.

ROE event notification Record of Employment Should this element create a ROE Specifies whether or not to create an
event notification? event notification when a termination
or unpaid leave of absence occurs for
the employee.

Final disbursement Accrual Liability and Does this plan enable balance Creates the Final Disbursement
payments Balance Payments payments when enrollment ends? shadow element, if the value selected
is Yes. If No, the shadow element is
not created.
When you select Yes for this question,
you are presented with the additional
options to specify the tax processing
type, EI allocation and EI hours for the
final disbursement payments.
The default tax processing type is
Nonperiodic, EI earnings allocation is
date paid, and EI hours is No.

Discretionary Accrual Liability and Does this plan enable partial payment Creates the Discretionary
disbursement payments Balance Payments of balance? Disbursement shadow element if the
value selected is Yes. If No, the
element is not created.

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 When you select Yes for this question,
you are presented with the additional
options to specify the tax processing
type, EI allocation and EI hours for the
discretionary disbursement payments.
The default tax processing type is
Nonperiodic, EI earnings allocation is
date paid, and EI hours is No.

Base Element Questions

The questions in the capture below determine options on the base absence element.

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Final Disbursement Element Questions
Some absence plans allow final disbursements or payout at employment termination. In these cases, you can elect
to pay the final disbursement by answering Yes to the enable balance payments when enrollment ends question
when creating your base absence element. For Canada, you can also specify the tax method, EI allocation and EI
hours for the final disbursement payments

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The questions in the capture below are reflected in the final disbursement element.

If Yes, the Final Disbursement element is created.

Discretionary Disbursement Element

Some absence plans support discretionary disbursement for unused absence balances. In these cases, you can
elect to pay the discretionary disbursement by answering Yes to the partial payment of balance question when
creating your base absence element. For Canada, you can also specify the tax method, EI allocation and EI hours
for the discretionary disbursement payments.

The questions in the capture below are reflected in the discretionary disbursement element.

8 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

 If Yes, the Discretionary Disbursement element is
created.

Elements Created (Base and Shadow)

During the definition of the absence element, the element template automatically creates some or all of the following
shadow elements in addition to the base absence element. The shadow elements created depend on the options
you select when you configure the element.

Element Name Purpose

<Absence Name> Absence element you associate with the absence plan.

<Absence Name> Accrual Shadow elements:

<Absence Name> Accrual Calculator  Retrieves absence accrual information from Absence Management
<Absence Name> Accrual Result  Processes liability

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 <Absence Name> Entitlement Shadow elements:
<Absence Name> Entitlement Calculator  Retrieves absence accrual information from Absence Management
<Absence Name> Entitlement Result  Processes absence payments and deductions

<Absence Name> Entitlement Retro Shadow element used to process absence payments and deductions in
retroactive processing.

<Absence Name> Discretionary Disbursement Shadow elements:

<Absence Name> Discretionary Disbursement Calculator  Retrieves partial payment information from Absence Management
<Absence Name> Discretionary Disbursement Result  Processes these disbursements

<Absence Name> Discretionary Disbursement Retro Shadow element used to process partial payment disbursements in retroactive
processing.

<Absence Name> Final Disbursement Shadow elements:

<Absence Name> Final Disbursement Calculator  Retrieves final payment information from Absence Management, such as
<Absence Name> Final Disbursement Result upon employee termination
 Processes these disbursements

<Absence Name> Final Disbursement Retro Shadow element used to process final payment disbursements in retroactive
processing.

Element Eligibility
You must create element eligibility for the base, accrual and entitlement elements, as noted below (using the
example of the absence element “RLH CA Vacation”).

» base element (RLH CA Vacation)

» <base element> accrual (RLH CA Vacation Accrual)
» <base element> entitlement (RLH CA Vacation Entitlement)
If you chose to create the final disbursement or discretionary elements, you must also create element eligibility for
those shadow elements.

» <base element> discretionary disbursement (RLH CA Vacation Discretionary Disbursement)

» <base element> discretionary disbursement result (RLH CA Vacation Discretionary Disbursement Result)
» <base element> final disbursement (RLH CA Vacation Final Disbursement)
» <base element> final disbursement result (RLH CA Vacation Final Disbursement Result)
If you are processing retroactive payments, you must also create element eligibility for those retro shadow elements.

» <base element> entitlement retro (RLH CA Vacation Entitlement Retro)

» <base element> discretionary disbursement retro (RLH CA Vacation Discretionary Disbursement Retro)
» <base element> final disbursement retro (RLH CA Vacation Final Disbursement Retro)

Costing Absence Elements

When setting up costing for absence elements, you may have to create costing element eligibility for the following
payment elements:
» Base absence entitlement, entitlement results, and entitlement retroactive elements
» Discretionary disbursement, disbursement result, and disbursement retroactive elements
» Final disbursement, disbursement result, and disbursement retroactive elements
You must determine how to cost element eligibility records, including which type of costing to apply and which input
value to cost. You determine which account numbers to specify for the cost account segments, such as the natural
account, and which offset account balances the cost account.

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For further information, see Global Human Resources Payroll Costing Guide (1918574.1) on My Oracle Support.

Overriding Default Absence Element Value Definitions

You may override the values selected during element creation for the tax method, EI hours and EI allocation for any
of the shadow elements that are created (entitlement, discretionary disbursement and final disbursement). These
values are stored as value definitions, so you override them using the Manage Calculation Value Definitions task.

The naming convention of the value definitions created for each shadow element is as given below:

Entitlement Element

» <Element Name> Tax Processing Type

» <Element Name> EI Allocation
» <Element Name> EI Hours
Discretionary Disbursement Element

» <Element Name> Disc Tax Processing Type

» <Element Name> Disc EI Allocation
» <Element Name> Disc EI Hours
Final Disbursement Element

» <Element Name> Final Tax Processing Type

» <Element Name> Final EI Allocation
» <Element Name> Final EI Hours
To override the value, use the Manage Calculation Value Definitions task, select the value definition name to edit,
and make the change to the value definition. This overridden value is used during the payroll process, instead of the
value initially configured at element creation.

If you override the values, they must be valid. The text values you must use to override the various types of value
definitions are as given below:

Tax Processing

» Regular: R
» Nonperiodic: N
» Lump Sum: L
EI Allocation

» Date earned: DATE_EARNED

» Date paid: DATE_PAID
EI Hours

» Yes: Y
» No: N

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The following is an example of where an override to the tax processing type is entered. The ‘N’ noted in the text
column indicates that the tax will be calculated using the nonperiodic method.

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Creating Derived Factors
Derived factors define how to calculate certain eligibility criteria whose values 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.

Using the Manage Derived Factors task, you can create six different types of derived factors:

» Age
» Length of service
» A combination of age and length of service
» Compensation
» Hours worked
» Full-time equivalent

Creating Eligibility Profiles

Create eligibility profiles to define criteria that determine whether a person qualifies for objects that you associate
with the profile. An eligibility profile is a user-defined set of criteria used to determine whether a person qualifies for
a benefits offering, variable rate or coverage, compensation plan, checklist task, or other object for which eligibility
must be established. You can associate eligibility profiles with objects in a variety of business processes.

Criteria defined in an eligibility profile are divided into categories:

Category Description

13 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

Personal Includes gender, person type, postal code ranges, and other person-specific criteria.

Employment Includes assignment status, hourly or salaried, job, grade, and other employment-specific criteria.

Derived factors Includes age, compensation, length of service, hours worked, full-time equivalent, and a
combination of age and length of service.

Other Includes miscellaneous and user-defined criteria.

Related Includes criteria based on whether a person is covered by, eligible for, or enrolled in other
coverage benefits offerings.

Some criteria, such as gender, provide a fixed set of choices. The choices for other criteria, such as person type, are
based on values defined in tables. You can define multiple criteria for a given criteria type.

In this example below, the eligibility profile was created with the criteria of an employee person type.

Creating Absence Plans

Absence plans determine how entitlements are provided to an employee including eligibility and rates. The plan
captures and provides information to payroll to facilitate payment of absences. It determines:
» If and how entitlements are granted to the employee
» Who is eligible to participate in the plan
» How payments for the entitlements are calculated and paid
Rates of accrual and entitlement are determined by configurable matrices (or formula).

There are different types of plans defined in the table:

Plan Type Description

Accrual Time earned by an employee on a periodic basis. This is typically used for vacation time.

Agreement Time agreed upon between the employer and employee.

Note: This plan type is specific to the UK localization and not used by Canada.

14 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

No Entitlement A plan that has neither accrual nor entitlements defined. Commonly used to track unpaid absences.

Qualification Employee’s entitlement time that is not earned, but granted to them on a periodic basis. These types of
non-accrued plans are commonly used for entitlements other than vacation, such as maternity or sick
time.

There are numerous options and additional setup within the plans themselves that allow customers to configure the
plans to meet their needs. For example, customers can specify accrual periods, whether employees are allowed to
take vacation before it accrued, specific termination rules, carryover rules, etc. Oracle Fusion does not seed any
plans.

Configuration of the absence plans is done in the Absence Administration work area, using the Manage Absence
Plans task.

Below is an example of a vacation absence plan, showing the basic details and plan attributes.

Participation
The enrollment and termination rules for the plan are configured in the Participation tab of the absence plan.
Additionally, you must attach the eligibility profile to the plan.

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Accruals
The accrual rules and limits for the plan are configured in the Accruals tab of the absence plan.

16 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

Entries and Balances (Configuring the Transfer of Absence Information to Payroll)
Payroll requires specific information to process the information for absence payments. In order to process the
absence payment in payroll, the information must be passed from Absence Management to Payroll. To configure
the payroll integration and pass the information, you must select the “Transfer absence payment information for
payroll processing” option and assign the absence element created in payroll.

Important! If this is not configured, the absence information is NOT transferred to payroll for processing.

Creating Absence Types

An absence type is a grouping of absences, such as illness or personal business that is used for reporting, accrual,
and compensation calculations. Absence types manage the appearance and processing of absence records. This
includes who can enter or update the absence, how the absence can be scheduled, what information is captured,
whether the absence is approved, what plans apply to the type, if and how reasons are used and what supporting
documentation is captured and maintained. One absence plan may be associated with multiple absence types.

Use the Manage Absence Types task, in the Absence Administration work area to create absence types.

Each of the tabs are briefly discussed in the sections below.

Type Attributes
Define various general attributes and rules of the absence type on the Type Attributes tab.

17 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

Plan and Reasons
Link the absence plan and reasons for the absence type on the Plan and Reasons tab.

Absence reasons further refine the absence, if required. If configured, you may select them when an absence is
scheduled. Absence reasons are independent of absence types. You can use the same reason for multiple
absence types. When you create an absence type, you associate the valid reasons with the type.

Use the Manage Absence Reasons task, in the Absence Administration work area to create absence reasons.

Display Features
Display and processing features are configured on the Display Features tab.

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Enrolling Employees in Absence Plans
An important step is to enroll the employee in the absence plan.

If you created the plan prior to the employee being hired, they are automatically enrolled in the accrual and
qualification plans, given the employee meets the qualification requirements. However, if you created the plan after
the employee is hired, you must manually enroll them in the appropriate plans.

Use the Manage Absences task in the Person Management work area to enroll employees in the absence plan, or
verify automatic enrollment into a plan.

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Processing Accruals
If an employee is enrolled in an accrual plan, you must run the accrual process. You should use the payroll period
end date to run the accrual process.

You may run the accrual process from the UI or run a batch process.

These processes:

» Calculate the accrual balance for each active enrollment

» Update plan balances
» Transfer the information to payroll
Note: You must configure this option in the absence plan to transfer absence information to payroll by selecting
the “Transfer absence payment information for payroll processing” option and assign the absence element
created in payroll.

Processing Accruals in the UI

You may run the accrual process in the UI using the Manage Absences task in the Person Management work area.
You may run the process for all active plans or only the selected plan.

20 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

Withdrawing Accruals in the UI

You may also withdraw and update worker accrual balances and delete enrollments in the UI using the “Withdraw
accruals and balances” option.

Processing Accruals in Batch

You may also process accruals in a batch process using the Calculate Accruals and Balances batch process, which
is accessed from the Schedule and Monitor Absence Processes task in the Absence Administration work area.

Withdrawing Accruals in Batch

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You may also withdraw accruals in a batch process using the Withdraw Accruals and Balances batch process,
which is accessed from the Schedule and Monitor Absence Processes task in the Absence Administration work
area.

Creating Employee Absence Records

At this point, an absence record may be generated for the employee.

Absence Record Entry

There are multiple ways to perform absence transactions, as noted below:

» The employee can personally perform the entry using Self Service, if it is available.
» A manager can perform the entry for their reports.
» The administrator can perform the entry.
In the example below, the absence entry is created by the administrator.

ROE Events
When an absence record is generated and the ROE notification option on the absence element is set to create a
Record of Employment Notification event for the absence, the ROE event is created using the absence start date.
The absence element with this configuration must also be linked to the absence plan.

Absence Calculation Cards

When an absence record is created for the employee, the absence information is automatically transferred to
payroll. The absence calculation card is created, along with the components that hold the absence information.
When the absence information is transferred to payroll, the employee’s calculation card contains a summary record
and a daily breakdown for each day the person is absent. The summary record contains information such as the

22 | ORACLE FUSION HUMAN CAPITAL MANAGEMENT FOR CANADA: ABSENCE MANAGEMENT

start and end date of the absence, the absence rate, and the units. The daily breakdown shows the absence date
and any factor to be applied, such as the percentage to use when calculating the absence payment. Element
entries are also created for the transaction to be processed in the payroll.

The above assumes the absence is approved and the option to transfer to payroll is configured on the absence plan.

In the example below, the employee’s absence calculation card that was automatically created is displayed.

The generated calculation components are also displayed.

Below is the entitlement record that displays the calculation values.

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Below is the accrual calculation component with the unit accrued for the employee.

Element Entries
When an absence record is created for the employee, the element entries are also created for the transaction to be
processed in the payroll.

Below are the accrual and entitlement element entries.

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Processing Payroll
Once the information is transferred to payroll and the entries are generated, you can process the payroll that
includes the absence entries and view the resulting absence balances on the employee’s Statement of Earnings.

Viewing Absence Balances

Once the payroll is processed and archived, the employee’s absence payments and accrual balances are displayed
on the employee’s SOE, payslip, cheque advice, and reports.

Troubleshooting
Review the following document to help troubleshoot absence and payroll integration issues.

» Trouble-Shooting Fusion Absence / Payroll Integration Issues (Doc ID 1930654.1)

https://mosemp.us.oracle.com/epmos/faces/ui/km/DocumentDisplay.jspx?id=1930654.1

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Oracle Fusion Human Capital Management for Canada: Absences

August 2017