What is compulsory retirement in SAP PY - Payroll?

SAP Term: compulsory retirement

• Component: PY

• Component Name: Payroll

• Description: Mandatory end of a job tenure.

Smart SAP Assistant

• Key Concepts: 
  Compulsory retirement is a feature in SAP Payroll (PY) that allows an employer to set a retirement age for their employees. This feature ensures that employees are not employed beyond the set retirement age, and that they receive the appropriate benefits and entitlements upon retirement. 
  
  How to use it: 
  In order to use the compulsory retirement feature, employers must first set up the retirement age in the system. This can be done by entering the employee's date of birth and the desired retirement age into the system. Once this is done, the system will automatically calculate when the employee should retire and will notify them accordingly. 
  
  Tips & Tricks: 
  It is important to note that compulsory retirement is only applicable to employees who are employed on a permanent basis. Employees who are employed on a temporary or contract basis are not subject to compulsory retirement. Additionally, employers should ensure that they are aware of any local laws or regulations regarding compulsory retirement before setting up this feature in their system. 
  
  Related Information: 
  For more information on compulsory retirement in SAP Payroll, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_HCM/6.0_SP04/en-US/f8d7f9a3e2b14c8a9f3d7c2b5f9e4d1a.html