Terminating Employment in Oracle HCM: A Complete Overview

Introduction

Terminating employment in Oracle HCM involves ending a work relationship for employees or non-workers. This is typically done using the Manage Work Relationship task within the Person Management work area. Understanding the right way to handle termination ensures proper data management and smooth transitions.

Types of Termination Actions

1️⃣ Terminating a Work Relationship

• Work relationship termination ends all assignments linked to the individual.
• If an employee has multiple assignments but a single work relationship, the entire relationship must be terminated.
• To terminate individual assignments, use the Manage Employment task and select End Assignment from the Actions list.

2️⃣ Ending Employment (Complete Termination)

• When you terminate a work relationship:
  • All assignments related to the work relationship are automatically ended.
  • The work relationship status and assignments change to inactive starting the day after the termination date.
  • The employee becomes an ex-employee or ex-contingent worker.

Impact of Termination

1️⃣ User Access Revocation

• User access and roles are revoked by default after the termination date.
• You can choose to revoke access earlier as soon as the termination is approved, even before the termination date.

2️⃣ Future-Dated Changes

• Future-dated changes are lost unless:
  • The termination is initiated by the worker or a line manager.
  • The future changes are related to a global temporary assignment, in which case, manual intervention is required to delete the changes.

Payroll Termination

• When an employee is terminated, a notification is sent to the Payroll Administrator to inform them of the termination.
• The Payroll Administrator is then responsible for completing payroll termination tasks to close the employee's pay records.

Managing Direct Reports After Manager Termination

• If a manager is terminated, their direct reports are reassigned to the manager’s manager.
  • If position synchronization is enabled:
    • Manager Synchronization to Position: Direct reports will report to the manager in the position.
    • Manager Synchronization to Position Hierarchy: Direct reports will report to the incumbent in the parent position in the hierarchy.
    • If the parent position is vacant, the application will look for an incumbent in the next level up, and if multiple incumbents exist, the person with the longest tenure is selected as the new manager.

Key Takeaways

• Terminate Work Relationships to end all assignments.
• Revoke User Access based on approval dates to ensure security.
• Manage Direct Reports to ensure proper reassignments after a manager’s termination.
• Handle Payroll Termination by notifying the Payroll Administrator to complete the process.

I hope this blog post was helpful for you. If you have any questions or feedback, please leave a comment below.