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

Create Severance Matrix

Security:
Set Up: Severance Packages
 domain in the Core Compensation functional area.
Create a severance matrix to determine:
  • The compensation basis Workday uses to calculate the severance.
  • The duration of severance payments both before and after the termination date.
  1. Access the
    Create Severance Matrix
     task.
  2. Select an
    Effective Date.
    You can add a severance matrix to a severance package after the effective date.
  3. Select 1
    Basis
     option and 1
    Duration
     option to determine the severance matrix type:
    Option Description
    Compensation Basis Range
    Create the severance matrix based on a compensation basis range.
    Service Length Basis Range
    Create the severance matrix based on a service year compensation basis.
    Specific Duration Entries
    Create the severance matrix based on a specific duration amount.
    You can qualify who receives an amount according to length of service and eligibility rules.
    Length of Service Multiplier
    Create the severance matrix based on a duration amount as a multiplier of length of service.
  4. Configure options applicable to the severance matrix type:
    Option Description
    Duration Unit
    Enter the units for the minimum and maximum ranges for each matrix band (row).
    Length of Service Unit
    Available if you based the severance matrix type on
    Service Length Basis Range
    .
    The options available depend on the units used to define the minimum and maximum length of service.
    Calculate Compensation Basis As Of Date
    Available if you based the severance matrix type on
    Compensation Basis Range
    .
    Select the relative date from which Workday calculates the compensation basis and determines eligibility for the matrix band.
    Compensation Rounding Rule
    Available if you based the severance matrix type on
    Length of Service Multiplier
    .
    Workday rounds the calculated severance or notice duration according to the selected rounding rule created on the
    Create Compensation Rounding Rule
     task.
    Multiplier Order
    Available if you based the severance matrix type on
    Length of Service Multiplier
    .
    Select when Workday performs rounding, before or after multiplication.
  5. As you complete the severance matrix eligibility bands (rows), consider:
    Option Description
    Minimum / Maximum Compensation Basis Range
    Available if the severance matrix type is
    Compensation Basis Range
    .
    Enter the minimum and maximum values of the compensation basis range. You can enter up to 2 decimal places.
    Workday uses this range to determine eligibility for this matrix band.
    Minimum / Maximum Length of Service
    Available if you based the severance matrix type on
    Service Length Basis Range
    .
    Enter the minimum and maximum values of the length of service in
    Duration Units
    . You can enter up to 2 decimal places if the length of service is under 1 year.
    The minimum value of the next range must be equal to the maximum value of the previous range. Example:
    • Range 1: From 1.00 through 10.00.
    • Range 2: From 10.00 through 20.00.
    Workday uses this range to determine eligibility for this matrix band.
    Eligibility Rules
    Limits the severance matrix to a specific group of employees.
    Duration
    Available if you based the severance matrix type on
    Specific Duration Entries
    .
    When combined with
    Duration Units
    , defines how long an employee is entitled to receive severance or notice.
    If you enter zero, eligible employees don't receive severance pay.
    Length of Service Multiplier
    Available if you based the severance matrix type on
    Length of Service Multiplier
    .
    Specifies how long an employee is entitled to receive severance or notice when multiplied by the
    Minimum Years of Service
     and
    Duration Units
    .
    If you enter zero, eligible employees don't receive severance pay.
    Minimum Duration
    Enter the minimum duration the worker eligible for this band is guaranteed to receive.
    Used to validate any adjustments made on the
    Severance Package Assignment
    .
    If you leave the field blank or enter zero, Workday doesn't enforce restrictions if any dates change on the
    Severance Package Assignment
    .
    Maximum Duration
    Enter the maximum duration the worker eligible for this band is guaranteed to receive, regardless of the length of service multiplier.
    Used to validate any adjustments made on the
    Severance Package Assignment
    .
    If you leave the field blank or enter zero, Workday calculates zero severance duration for the worker.
You can access the
Severance Matrix Report
 to compare severance matrices to each other.