Accrual Start Rules
Accrual plans differ with respect to the date from which they permit plan participants to start accruing PTO. In Oracle HRMS, the accrual start rule determines this date for a plan. The system includes these accrual start rules:
- Beginning of Calendar Year
- Six Months after Hire Date
Enterprises have many different rules governing their accrual starts, so you may need start rules other than the three provided. You can either modify the existing rules, or add new ones.
Start Rule: Hire Date
For plans with this rule, participants' accruals begin from the first full period following their hire date. For example, if the hire date of a participant on a semi-monthly payroll falls on the first day of either the first or second period in the month, PTO accrual starts as of that date.
If the hire date falls sometime after the first of the month but before the end of the first period, accruals start in the second period of the month. If the hire date falls after the first day of the second period but before its end, accruals start with the first period in the next month.
Start Rule: Beginning of Calendar Year
With this start rule, participants' accruals begin from the start of the year following the year in which they are hired. This means that a participant with a hire date of 2 January 1996 and another with a hire date of 31 December 1996 both start to accrue time as of 1 January 1997.
Notice that the amount of PTO each accrues may not be the same, as accrual amounts often depend on employees' length of service.
Plans with the start rule Hire Date or Beginning of Year can require participants to work for a period of time, perhaps three or six months, before they are eligible to accrue PTO. If plan participants in fact take vacation or sick leave during this period, the system does not accept entry of this time against the accrual plan. Many enterprises set up an absence type for "approved but unpaid leave" to use for absences taken during periods of ineligibility.
The period of ineligibility is not applicable to plans with the start rule Six Months After Hire.
Start Rule: Six Months After Hire
For plans with this start rule, participants' accruals do not begin until the first full pay period after the six-month anniversary of their hire date. For example, someone on a semi-monthly payroll who is hired on 5 February 1996, completes six months of service on 5 August 1996, and starts to accrue PTO in the second period in August.
Notice that if people are hired on the first day of a period, their accruals begin with the pay period of the six-month anniversary of their hire date. For example, someone on a semi-monthly payroll who is hired on 1 February 1996 completes six months of service on 1 August 1996, and hence starts to accrue PTO in the first period in August.
See Also
Length of Service and Accrual Amount Rules
Accrual Plan Setup Steps
