Employment Models in Oracle Fusion HCM Explained

Employment Models

This is one of the topic you should know very well when switching from Oracle Ebiz (PeopleSoft) to Fusion. Oracle Fusion supports different type of employment models. They are broadly categorized into Two-Tier model and Three-Tier models but they have their on variations, which we will cover later in this post. It is just because two employment models have come now, there is a confusion otherwise, more or less, we already have Two-Tier model in oracle Ebiz and PeopleSoft. In Oracle Fusion we configure employment model at enterprise level or/and Legal Employer level.

To configure/change the employment model of an enterprise you search for the task “Manage Enterprise HCM Information”

Different Employment Models

As explained briefly above there are two employment models available in oracle Fusion, which are given below

Two-Tier Employment Models

Two -Tier employment models consist of Work Relationship and Assignments. This employment Model has three variations, which are given below:-

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i. Single Assignment

As the name suggests at any point of time a worker can have only one active assignment with legal employer for any work relationship. When you create the work relationship (Employee, Contingent Worker, Non-worker) the assignment record gets created automatically. System will not allow you to create any additional assignments.

ii. Single Assignment With Contract

As the name suggests along with the assignment details you can also capture contact information for any work relationship with legal employer. You still cannot create multiple assignments. This model works for the enterprise/legal employer where there are less number of workers for whom contract information must be captured to meet their obligations. You can also think as a workaround of the Three-Tier employment model when you only need to record contract details for less number of employees. Please note, contract details are captured only for employees not for contingent workers.

iii. Multiple Assignments

In this variation you can create multiple assignments for any work relationship with legal employer. When you create a work relationship one assignment gets created automatically. You may create any number of additional assignments later manually. Remember, in this variation you wont be able to captured Contract related information.

Three-Tier Employment Models

This employment model consists of three entities. Two you are already familiar now from two-tier models, additional entity, third, for this model is Employment Term. Three-Tier employment models have four variations, which are given below.

An enterprise will go for this model when they have to capture Contract Related information (Employment Terms) for all employees. We have already seen the shorter version of this, which is “Single Assignment With Contract”.

i. Single Employment Terms With Single Assignments

In this employment model a work relationship contains one employment term and that employment term will have only one assignment at any point of time. Employment terms and assignment are created automatically when you create a work relationship with employer.

ii. Single Employment Terms With Multiple Assignments

In this employment model a work relationship contains one employment term and that employment term will have multiple assignments. Employment terms and one assignment are created automatically when you create a work relationship with employer. Additional assignments can be created manually later. Remember, additional assignments may belong to employment terms or exist outside.

iii. Multiple Employment Terms With Single Assignments

In this employment model a work relationship contains one or more sets of employment terms and each employment term can have only one assignment at any point of time. One set of employment terms and the associated assignment are created automatically. Additional Employments terms are created manually.

iv. Multiple Employment Terms With Multiple Assignments

In this employment model a work relationship contains one or more sets of employment terms and each set of employment term can have one or more assignments. One set of employment terms and the associated assignment are created automatically. Additional Employments terms are created manually. Additional employment terms and assignments are created manually. Additional assignments can belong to employment terms or exist outside.

Employment Terms Override

If you see the three-tier employment models you might have question that why do we need to enter same information at employment term and again at assignment level. To make the life easier Oracle Fusion allows assignments to inherit most attribute values from the associated employment terms.

For Example : If you set the assignment category to Full-Time in the employment terms, all associated assignments with employment terms will by default get set to Full-Time.

At the enterprise or legal employer level you have the options to enable whether attributes defaulted from employment terms can be further override at assignment level or not. You basically have following three options.

Preventing Override at the Assignment Level

With this option users cannot update assignment attribute values inherited from employment terms. This approach is recommended if you want to enforce particular assignment attribute values. The restriction applies only to attribute values that users specify on the employment terms, and they can specify as many or as few attributes as required at that level. Any value that users omit from the employment terms can be updated without restriction at the assignment level.

Allowing Override at the Assignment Level

With this option users can update assignment attribute values inherited from employment terms. Using employment terms in this way can be efficient, particularly if workers in your enterprise have multiple assignments in a single set of employment terms: users enter attribute values once only in the employment terms, but can update individual attributes as necessary at the assignment level.

Deferring the Decision to the Employment Terms

If you have no compelling reason either to allow or to prevent override at the assignment level, you can defer the decision to each set of employment terms. That is, whenever a user creates a set of employment terms, that user can decide whether to allow or prevent override at the assignment level.

To change the override option you search for the task “Manage Enterprise HCM Information”

Switching Between Employment Models

There comes a scenario when an enterprise or legal employer would like to switch from one to another employment models. It is pretty easy to switch between these models as long as no work relationship exists. However, it gets complicated when work relationship exists.

To change the employment model of an legal employer search for the task “Manage Legal Entity HCM Information”

Before you make your mind to change the employment model of an enterprise or legal employer do check the table below, which shows the option you have when want to switch between employment models.

» P.S. Information given in the table below is true as of Release 9.

• You can switch from a two-tier employment model to a Three-tier-tier employment model only if no work relationships exist in the enterprise or legal employer.
• You can switch from a Three-tier-tier employment model to a two-tier employment model only if no work relationships exist in the enterprise or legal employer.
• You can switch from one Three-tier-tier employment model to any other Three-tier-tier employment model at any time.

Additional Resource

• Oracle Fusion Business Process Models: 21 Workforce Deployment (Doc ID 1578175.1)
• Fusion Global HR: In New Hire Why Does Changing Legal Employer Delete All Information For New Person ? (Doc ID 1941302.1)
• Fusion : FBL Loading of Work Relationships in 3-tier Employment Model is not Loading (Doc ID 1918840.1)

Interview Questions on Employment Models

• An enterprise operates in a country where contract information is required for the employees. What kind of employment model can an enterprise use?
• When can an enterprise move from one employment model to another