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Former Member

Provision for Notice period for an employee

Hello Expert,

One of my client having a requirement as below:

We need to have the following in SAP as a compensation against Notice period:

1.Provision is required to collect / deduct compensation from employee if they could not serve during the notice period
2.Options are required to input the % of Compensation for notice period since it will vary based on the employee status (Probation / Confirmation)
3.The company will pay one month compensation if the employees are not allowed to work during the notice period. In such cases, system should create an entry for making the payment excluding performance pay for their notice period

Please let me know the provision through which this can be mapped or create a provision for the same.

As i am new to SAP Payroll, kindly let me know how to configure this and how to proceed.

Awaiting for the correct process.



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2 Answers

  • Posted on Aug 21, 2016 at 01:36 PM

    Hello Ninad

    Kindly check SAP note 374197-Termination workbench. Kindly refer to the Notice pay section in this note which provides the details.

    Thanks and Kind Regards


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  • author's profile photo Former Member
    Former Member
    Posted on Aug 22, 2016 at 05:40 AM


    you have two options,

    1. simple create 2 wt's for Notice period paid & Notice period recovery and maintain the amount in the IT 0015.

    2. if you want system to calculate the either Notice period paid/recovery then write small PCR according to your requirement and maintain the No. of days in the Specific wage type through IT 0015.

    Best Regards

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