Employment Terms is a new concept introduced in Oracle Fusion. In this article, let’s see

•  What an Employment Term is,
• The advantages of using an Employment Term,
• Different Types of Employment Model

What is an Employment Term in Oracle Fusion HCM?
The Employment Model is designed to support simple or complex global work relationships. In Oracle EBS, if an employee has work relationship in two different Legal Entities, then the Assignment record has to be maintained in two different places. Because Fusion HCM is global, it is created only once even though an employee is working in two different Legal Entities. The global person is a good improvement for multinational enterprises and the employment models ensure employees can be entered into the system reflecting their employment in the enterprise.
What are the advantages of using Employment Term?
It manages a worker’s relationship with multiple legal employers, multiple assignments, or individual contractual agreements with great flexibility and ease. If you know that a person will have multiple similar assignments in a work relationship, assignments automatically inherit any information that you enter in employment terms. Because you enter the information once only, using employment terms is efficient and promotes consistency among related assignments. You have the option to limit or prevent changes made directly to the assignments level.

While configuring the Employment Model, if your enterprise or legal employer has prevented override at the assignment level, then you will not be able to edit any of the assignment information that was inherited from the Employment Terms. Instead you can edit the employment term and all associated assignments inherit the changes you made in the Employment Terms. This approach is recommended if you want to enforce particular assignment attribute values. This restriction of editing assignment only applies to the information that inherits from the Employment Terms. If you do not enter employees working hours in the Employment Terms, you can enter different values for each assignments associated with this Employment Terms.
Different Types of Employment Model
Three-Tier Employment Model and Two-Tier Employment Model

• Employment Model can be set up at Enterprise level and Legal Employer level (which overrides enterprise set up)
• The default value is 2-tier model –single assignment
• In case a 3-tier model is adopted, the HR specialist user can indicate if employment terms data can be overridden at assignment level

Three-Tier Employment Model
This model comprises three types of entities: Work relationships, Employment terms, and Assignments. Users can include contract details in employment terms. When you configure the employment model for the enterprise or legal employer, the following four three-tier options are available:

Single Employment Terms with Single Assignment
Each work relationship contains one set of employment terms, and each set of employment terms contains one assignment. Both the employment terms and the assignment are created automatically.

Single Employment Terms with Multiple Assignments
Each work relationship contains one set of employment terms, and the employment terms can contain one or more assignments. The employment terms and one assignment are created automatically when the work relationship is created; additional assignments are created manually. Additional assignments can belong to the employment terms or exist outside them.

Multiple Employment Terms with Single Assignment
Each work relationship can contain one or more sets of employment terms, and each set of employment terms can contain a single assignment. One set of employment terms and the associated assignment are created automatically when the work relationship is created; additional employment terms and assignments are created manually. Additional assignments can belong to employment terms or exist outside them.

Multiple Employment Terms with Multiple Assignments
Each work relationship can contain one or more sets of employment terms, and each set of employment terms can contain one or more assignments. One set of employment terms and an associated assignment are created automatically when the work relationship is created; additional employment terms and assignments are created manually. Additional assignments can belong to employment terms or exist outside them.

Two-Tier Employment Model
This model comprises two types of entities, which are work relationships and assignments. Employment terms occur in the three-tier employment model only. When you configure the employment model for the enterprise or legal employer, you can select from three two-tier options:

Single Assignment
If you select Single Assignment, each work relationship of any type has one assignment only. The assignment is created automatically when the work relationship is created.

Single Assignment with Contract
If you select Single Assignment with Contract, users can include contract information in the single assignment. This approach enables those legislations that require contract information in employment records to meet their obligations without having to use a three-tier employment model. The assignment is created automatically when the work relationship is created. Including contract information in the assignment is optional.

Multiple Assignments
If you select Multiple Assignments, each work relationship of any type can include one or more assignments. One assignment is created automatically when the work relationship is created. Additional assignments are optional and are created manually.

Changing the Employment Model 

We can change the employment model for the enterprise or legal employer both during initial implementation and later. However, there are some restrictions on switching to and from particular employment models.  We can switch from:

• Two-tier employment model to a Three-tier employment model only if no work relationships exist in the enterprise or legal employer
• Three-tier employment model to a two-tier employment model only if no work relationships exist in the enterprise or legal employer
• At any time, you can switch from one Three-Tier employment model to any other Three-Tier employment model.
• Single Assignment to Multiple Assignments
• Single Assignment to Single Assignment with Contract if no work relationship exist in the enterprise and vice versa.
• Multiple Assignments to single Assignment
• Multiple Assignments to Single Assignment with Contract

Jayashree Prakash

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