Answer / Deepak Vasistha

SAP handles various business scenarios such as financial management, supply chain management, human resources management, and project management, among others. When a person is terminated in SAP HR, their employment status changes to 'Terminated' in the master data. The data related to this employee remains in the system for compliance purposes, usually for several years depending on the company's policies and local laws. If an employee's contract is changed from temporary to permanent, the relevant transactions are executed through the 'Change Employment' or 'Convert Temporary Employee' functions in SAP HR. The data of a terminated employee will not be deleted immediately but will typically be archived after a specified retention period.

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