The correct approach is to create a rule for the regional variation and place it in the layer that represents that specific region. In Pega’s Situational Layer Cake, regional differences are handled by using a dedicated layer above the common enterprise or application layer. The base HR time off case stays in the common layer and remains unchanged. Any regional customization should be added in the regional layer so it only applies when that region is in context. This keeps the base application clean while allowing localized behavior where needed. So the right answer is to add the rule in the layer for the region.