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Saudi Arabia Localization: Payment Under Article 77 Is Covered Or Not By Seeded End Of Service (Doc ID 2377874.1)

Last updated on MAY 18, 2018

Applies to:

Oracle Fusion Global Payroll Cloud Service - Version 11.12.1.0.0 and later
Information in this document applies to any platform.

Goal

Payment under article 77 is covered or not by Seeded End of Service

Does the seeded Gratuity for Element include Provision or Payment under Article 77 of Saudi Labor Law?

In case of Fixed Term Contract,In Addition to Regular End of Service Benefits, Remaining Months of Salary is supposed to be Paid to an Employee if he is prematurely terminated from his contract with out any Valid Reason
Example: An Employee has Fixed Term contract of 2 years and is Terminated under Article 77 after 1.5 Years than End of Service Benefits + Remaining 6 months of Salary should be paid to him.

-> In case of Unlimited Contract If an Employee is Terminated under Article 77, Half Months Salary is supposed to be Paid to him Per year he has worked with the Company in addition to the Regular End of Service Amount
Example: An Employee has Unlimited Contract and is Terminated under Article 77 after 5 Years than End of Service Benefits+ 2.5 Months of Salary; should be Paid to him as End of Service.

-> Irrespective of Fixed or Unlimited Contract, the Additional Compensated End of Service Benefits Should be Equivalent or More than 2 Months Salary.
 

Solution

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