Oracle Fast Formulas - Chapter 49: Fast Formula for Notice Period Recovery

 Chapter 49: Fast Formula for Notice Period Recovery

Overview:

This formula helps automatically calculate the notice period recovery amount from employees who do not serve the full notice period upon resignation or termination.

---

Business Logic:

• Notice Recovery = (Monthly Salary / Total Days in Month) × Unserved Notice Days

---

Inputs Required:

• MONTHLY_SALARY: Employee’s full salary for the month

• UNSERVED_DAYS: Number of days not served in the notice period

• TOTAL_DAYS: Total days in the respective month (usually 30/31)

---

Sample Formula:

DEFAULT FOR MONTHLY_SALARY IS 0
DEFAULT FOR UNSERVED_DAYS IS 0
DEFAULT FOR TOTAL_DAYS IS 30

INPUTS ARE MONTHLY_SALARY, UNSERVED_DAYS, TOTAL_DAYS

NOTICE_RECOVERY = (MONTHLY_SALARY / TOTAL_DAYS) * UNSERVED_DAYS

RETURN NOTICE_RECOVERY

---

Use Case Example:

• Monthly Salary: ₹60,000

• Unserved Notice Days: 10

• Total Days: 30
  → Notice Recovery: (₹60,000 / 30) × 10 = ₹20,000

---

Best Practices:

• Ensure to validate that UNSERVED_DAYS ≤ Standard Notice Period.

• The formula should also be linked to final settlement processing.

---

Practice Quiz:

1. How is the per-day salary calculated for notice recovery?

2. What happens if the employee serves the full notice period?

3. Can notice recovery be waived? If yes, where do you handle it?