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HRMS Absence Management Setup

Revised 06/17/17

Application: Human Resources

Setup Item: Absence Management

R2i Checklist Step: HR-75

Overview of Absence Management

Employees are absent from work for a variety of purposes, such as illness or injury, vacation, medical
appointments, childbirth, death of a close relative, jury duty, and professional activities. Many
enterprises permit employees to accrue hours or days of PTO (paid time off) to use for sick or vacation
leave. In such enterprises, setting up and maintaining PTO plans is another part of absence
management.

For management of your employees absences from work, you must be able to:

Group related absence types together for reporting and analysis.


Identify the types of absence your enterprise recognizes.
Record the reasons, dates, and times for projected and actual absences and maintain
records of time taken for each absence.
Group related absence types together for reporting and analysis.
Set up and administer PTO accrual plans, whereby employees can accrue time off for
vacation or sick leave as they work.

Maintaining Absence Balances

Using Oracle Human Resources, you can set up any number of absence types for recording employees
absences. The system keeps a running balance for each absence type. Each time you record an absence
for an employee, the balance is automatically increased or decreased according to how you have set it
up.

Absence Types: Absence Categories and Types

Absence Category Absence Type


Medical Leave Illness or Injury
WorkRelated Injury
WorkRelated Illness
Medical Appointment
Family Leave Paid Maternity/Paternity
Unpaid Maternity/Paternity
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All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Dependent Care
Personal Leave Compassionate Leave
Personal Business
Professional Leave Certification Classes
Meeting Attendance

Absence Category, Type, and Reason

Absence Category Absence Type Absence Reasons


Family Leave Paid Maternity/Paternity Birth of a child
Adoption of a child
Dependent Care Child care

Absence Types

Oracle Human Resources provides a convenient way to maintain information about the various
absence types your enterprise recognizes. To facilitate reporting and analysis of employee absences,
you can distinguish between absence types and absence categories. An absence category is a group of
related absence types.

Each absence you enter is of a certain type (such as study leave) within a certain category (such as
unpaid leave). Categories group together a number of related absences types for reporting purposes.
For each absence type, you can maintain a balance of time off for the employee. If the absence type
does not provide sufficient explanation of the circumstances of the absence, you can define absence
reasons to associate with the absence type. If you want Oracle Human Resources to maintain a balance
of time off recorded under a certain absence type, you associate an element with the type.

Oracle Human Resources provides a convenient way to maintain information about the various
absence types your enterprise recognizes. To facilitate reporting and analysis of employee absences,
you can distinguish between absence types and absence categories.

Also to assist with absence reporting and analysis, you can provide reasons to select from when
recording employees time taken for an absence type.

Setup of Absence Types

Setting up each absence type is essentially a two-step process. One step involves defining the type
that is, entering its name and optionally selecting a category and reasons for it. The other step involves
defining an element to associate with the type. This element serves two important purposes:
It provides a way to maintain a running total of time taken for the absence type. When you record an
absence for an employee, the amount of time taken goes as an entry to the input value of the element
associated with the absence type.

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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

It provides a way to restrict employee eligibility for the absence type. The links you build for the
element establish which employees are eligible to use the type.

To hold a single running total of time taken for two or more absence types, you associate all the types
with the same absence element. For example, your absence category Personal Leave may include two
absence types that you need for certain reporting purposes, Compassionate Leave and Personal
Business. However, you require just one running total to be kept of employees time taken for both
types of personal leave. In this case you simply associate both absence types with the same absence
element.

Absence Elements

Each element you define and associate with an absence type has an input value with either hours or
days as its unit of measure. To maintain a running total of the hours or days an employee has taken for
an absence type, this input value is said to hold an increasing balance.

Example Element for the Absence Type Compassionate Leave

Input Value Unit of Measure Initial Entry


Hours Hours in decimal (none)
format

Increasing Balances of Time Taken

An increasing balance for an absence type starts with no time entered and increases as you enter
employees hours or days absent. For example, if the absence type Compassionate Leave has an
increasing balance, the balance starts from zero for each employee and increases by the number of
hours entered for each absence of this type.

Increasing balances are appropriate for most or all absence types. For absence types for which your
enterprise sets a maximum time allowed, the system issues a message when an entry of time absent
exceeds this maximum (or Oracle Alert can notify you when an employee reaches the maximum time
or takes excess time).

When defining an absence type for a PTO accrual plan, give it an increasing balance that will show
accrued time that the employee has used. To see the amount of accrued time that an employee has
available for use as vacation or sick leave, use the Accruals window.

Example Element for the Absence Type Professional Leave

Input Value Unit of Measure Initial Entry


Amount Hours in decimal 32
format

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Copyright 2000 KPMG Consulting, LLC
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HRMS Absence Management Setup
Revised 06/17/17

Decreasing Balances of Time Remaining

If your enterprise sets a maximum time allowed for an absence type that is not connected to a PTO
accrual plan, you have the option of setting up a decreasing balance for this type, instead of an
increasing balance.

For example, suppose your enterprise allows certain employees 32 hours leave per year for
professional development. The Professional Leave absence element can have a decreasing balance and
an initial entry of 32 hours.

If you record an employee absence of 4 hours for this absence type, the decreasing balance shows 28
hours still available to be taken.

Decreasing absence balances require more maintenance than increasing balances. They need a prorated
initial balance entry for all eligible new hires throughout the year and require resetting each year for all
eligible employees.

Notice that an absence element cannot have both a decreasing and an increasing balance; it has one or
the other.

Initializing an Absence Balance

Oracle Human Resources provides two ways to initialize both increasing and decreasing absence
balances at the years start and to enter initial amounts of any decreasing balances:

The Element Entries window, for individual employees


The BEE facility, for batches of employees.

Alternatively, users can develop their own processes for resetting absence balances in a new year and
entering initial values for decreasing balances.

Referencing Absence Time in Payroll Runs

You can reference absence time taken (amount of an increasing balance) or absence time remaining
(amount of a decreasing balance) for absence types in formulas for earnings, deductions, or other items
Oracle Payroll processes in payroll runs. When defining the input value to hold the absence balance for
an absence types element, you can select the Database Item check box. Entries to this input value then
become database items that formulas for payroll calculations can access.

Absence Management Setup Steps

Define a nonrecurring absence element, with the termination rule Actual Termination and with at least
one input value for each absence type. Link this element.

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All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Note: To set up an absence type for which you do not need to maintain a running total of time
taken or remaining, and do not need eligibility rules, omit this step.

To keep a single record of employees time taken for two or more different absence types, you can
define only one element to associate with all the types.

Define categories of absence types as values for the Lookup Type ABSENCE_CATEGORY, and your
absence reasons as values for the Lookup Type ABSENCE_REASON.

You can select the same reason for different absence types. Define each absence type, associating it
with an absence element.

For an absence type with a decreasing balance, use the Element Entries window or the BEE to make
initial element entries for employees eligible for the type.

Defining an Absence Element

Navigator: US HR Manager
Navigate To: Total Compensation>Basic>Element Description

Date track to set the effective date to a day on or before the start of the first payroll period for which
you want to enter absences.
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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Enter a unique name for the Element (Sick Time). Give the absence element and its absence type the
same name, or coordinate the element name with the type name. An example, for the absence type
Sick Leave, name the element Sick Leave or Sick Leave Absence.

Select Information for the Primary Classification.

Select the processing to Nonrecurring, and the termination rule to Actual Termination. Check the
Multiple Entries Allowed box to have several instances of this type of absence in a pay period.

If this is an absence element for a PTO accrual plan, do not select Process in Run. Uncheck this box
if necessary.

If employees must be a certain age or have served a certain number of years to be allowed the absence,
enter this information in the Qualifying Conditions region. If this is an absence element for a PTO
accrual plan, the plan setup relate length of service to accrued time off. Do not make an entry here for
length of service.

SAVE your work.

Select the Input Values button.

In the Input Value window, create an input value to hold the amount of time taken. Select units of Day,
Hour in HH format, or Hours in Decimal Format (to one, two, or three decimal places).

(Note: Absence elements for PTO accrual plans should be defined as follows: give the input value the
name Hours or Days, to accord with the unit of measure of the plan. When you define the plan using
the Accrual Plan window, this input value name appears in the Units Field of the Absence Information
region.)

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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Select the sequence you require for the input value to process Payroll. If you do not use Payroll, select
1.

Select User Enterable .

Select Database Item only if you want to use the value in Fast Formulas.

Set a minimum, maximum and notification type if the entry does not meet your validation criteria.

SAVE your work. Close the two open windows.

Linking Elements

Navigator: US HR Manager
Navigate To: Total Compensation>Basic>Link

Date track to set the effective date to a day on or before the start of the first payroll period for which
you want to enter absences.

Select the element created for Absence recording (Sick Time) from the List of Values in the Element
Name field.

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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Choose the appropriate Eligibility Criteria for the Element, if applicable. If you want to make the
element available to all employees, do not select any criteria.

SAVE the link. Next define the absence type associated with the absence element.

To Define an Absence Type

Navigate: US HR Manager
Navigate To: Total Compensation>Basic>Absence Types

Date track to the effective date of the Absence Type and enter a unique name for the Absence Type
(Sick Time). (Suggestion: Give the absence type and its associated element the same name, or
coordinate the type name with its element name, i.e., name the absence type for a PTO accrual plan
Salaried Sick PTO Plan, and its associated element, Salaried Sick PTO Absence.)

In the Associated Element region, select the Element defined for the absence type (Sick Time). The
Input Value should populate from the input value selected when you defined the element and the unit
of measure for the input value appears in the Units region.

Select the Balance type (Increasing). (Note: To help you determine whether increasing or decreasing,
ask the question, Does each occurrence increase or decrease the balance on the employees record?)
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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Optionally, in the Reasons area, select a reason from LOV.


.

SAVE your work..

To Record Absences in HRMS:

Navigator: US HR Manager
Navigate To: People>Enter and Maintain>Query Individual>Assignment>Entries

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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Click on the New icon (green +) on the toolbar or go to a blank line and select the name of the
element in the Element Name field from the List of Values (Sick Time) as well as the effective To
date (if applicable).

SAVE your work.

Select the Entry Values button

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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved
HRMS Absence Management Setup
Revised 06/17/17

Enter the total hours in the Sick Time field and the date in the Date Earned field.

SAVE your work.

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Copyright 2000 KPMG Consulting, LLC
All Rights Reserved