Oracle HCM Cloud: Global Human Resources 2017 Implementation Essentials — Question 14

A multinational construction company, headquartered in London, has operations in five countries. It has its major operations in the US and UK and small offices in
Saudi Arabia, UAE and India. The company employs 3,000 people in the UK and US and 500 people in the remaining locations. The entire workforce in India fails under the Contingent Worker category.
How many Legislative Data Groups (LDGs), divisions, legal employers, and Payroll Statutory Units (PSUs) need to be configured for this company?

Answer options

• A. five LDGs (one for each country), four divisions (UK, US, India, and one for Saudi Arabia and UAE combined), five legal employers, and four PSUs (all except India)
• B. five LDGs (one for each country), four divisions (UK, US, India, and one for Saudi Arabia and UAE combined), two legal employers and PSUs (US and UK only, because the workforce is very small in the other countries)
• C. four LDGs (UK, US, India, and one for Saudi Arabia and UAE combined), five divisions (one for each country), four legal employers (all except India), and five PSUs
• D. five LDGs, five divisions, five legal employers, and five PSUs

Correct answer: A

Explanation

The correct answer is A because there is one LDG for each country, and since the operations in Saudi Arabia and UAE are combined, it results in four divisions. There are five legal employers as each country with operations needs one, and four PSUs are required since the workforce in India does not necessitate a PSU. The other options inaccurately reduce the number of legal employers and PSUs or miscalculate the divisions and LDGs.