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Administrator Guide
Last Updated: 2023-06-23
Create Severance Packages

Create Severance Packages

  • If your company policy includes U.S. WARN payments, specify the number of days of advance notice a worker must receive before termination.
  • Configure the
    Severance Assignment
     event in the
    Maintain Event Categories and Reasons
     task.
  • Create severance matrix.
  • Security:
    Set Up: Severance Packages
     domain in the Core Compensation functional area.
A severance package defines the types of severance pay components that an employee receives upon termination.
  1. Access the
    Create Severance Package
     task.
  2. Consider:
    Option Description
    Reason for Severance
    Determines which severance packages and reasons you can assign to the severance worksheet for an employee.
    Severance Matrix
    Determines start and end dates that entitle an employee to receive severance payments.
    Notice Matrix
    Determines how far in advance an employee is to receive notice of termination.
    Service Start/End Date
    Select the dates you want Workday to use when determining the length of service.
    Override Compensation Basis for Ongoing Severance Calculation
    Select a compensation basis to override the calculation of salary plans for
    Post Termination Payments
    Ongoing Severance Pay
    .
    Workday evaluates which compensation basis to use in this order:
    1. The selected override compensation basis.
    2. The highest compensation basis the employee is eligible for.
    3. The total base pay compensation basis.
    Termination Payouts
    Configure 1 or more
    Severance Payouts
     that define single payment lump sums paid with the final paycheck.
    Select the
    One-Time Payment Plan
     Payroll and Payroll Interface use to pay out the severance amount.
    Estimated Time Off Payout
    Select 1 or more
    Time Off Payout
     and
    Time Off Plans
     combinations you want to:
    • Pay out at termination.
    • Display in the severance worksheet cost estimations.
    Service Instructions
    Configure 1 or more service instructions that apply to the employee. For each instruction, select an option and enter instructions.
Assign the severance package to an employee.