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Administrator Guide
Last Updated: 2023-06-23
Concept: Termination Adjustments

Concept: Termination Adjustments

Workday generates a termination time adjustment for employees upon their termination. It sets the remaining time off plan balance to zero. The adjustment takes into account time offs, accruals, and any other adjustments for dates on or before the termination date.
To generate termination adjustments, specify a time off plan to use for the adjustments and include a step in the
Termination
 business process.
To receive a termination adjustment, an employee must meet eligibility requirements for the time off plan, its accruals, and the adjusting time off on the termination effective date. Workday doesn't process balance adjustments of greater than 1000 units.

Viewing Termination Adjustments

You can view a worker's termination adjustment after the service step from the Termination Business Process runs. Use the termination adjustment to calculate how much paid or unpaid time off the worker has.
You can use the
Adjustment
 tab of the
Maintain Accrual and Time Off Adjustments/Overrides
 page to view the termination adjustments.
The
Reference Date
 column displays the termination date. You can view the worker's termination adjustment details. Workday hides termination adjustments from employees until the day after their termination date. Employees continue to see their unadjusted balances and can request time off as before. They won't receive validation errors if their plan balance is too low to cover requests because of a termination adjustment.

Managing Termination Adjustments

Workday updates termination adjustments in response to certain events that happen after you create an adjustment.
You can't update a termination adjustment directly. You can use the
Adjustment
 tab of the
Maintain Accrual and Time Off Adjustments/Overrides
 page to enter a time off adjustment to offset the termination adjustment.
Events that update termination adjustments
  • Time off requests or corrections for dates on or before the termination date.
  • Rescinded terminations. Workday restores the plan balance and removes the
    Adjustments
     tab from the
    Maintain Accrual and Time Off Adjustments/Overrides
     page.
  • Corrections to termination dates. Example: You correct a termination date of October 20 to November 15. Workday updates the termination adjustment for any time off, adjustments, overrides, or accruals between the original and the corrected termination dates. Any correction to the termination event triggers a recalculation.
Events that don't update termination adjustments
  • Manual adjustments.
  • Accrual overrides and overrides to time off plan balances entered after a termination adjustment generates.
  • Requests to take compensatory time off (time off in lieu) entered through Workday Time Tracking.