Employee Gratuity Details Card for Kuwait

The component in the Employee Gratuity Details card corresponds to the payroll element gratuity contribution defined at the legislative level. This card captures additional information related to gratuity.

The Employee Gratuity Details card has only one component, and that's Employee Gratuity Details. When you create the Employee Gratuity Details card, the gratuity details component and component details record is created automatically. You can use the gratuity details component to enter data that impacts the calculation of gratuity payment.

On termination, you can choose to enter an override amount to be paid to the employee as gratuity. This amount overrides the gratuity amount calculated using the reference formula defined at the payroll statutory unit level and the legislative level formula calculation.

A Gratuity card is created automatically upon employee termination. The gratuity component, component details, and the association are automatically created simultaneously. This automatic card creation is enabled only if the Payroll Product Usage is set to Oracle Fusion Payroll or Payroll Interface.

End of Service Compensation

To enter the employee End of Service Compensation, you must manually create the calculation component details.

Click Create to create the calculation component details and enter the required information.

Consider the following points when entering the data:

If the contract type is Fixed Contract and the contract ends before the initial contract end date then, in addition to the calculation for gratuity, another compensation payment/reimbursement is required. If the employment ends early due to a decision by the employer, the employer must pay an agreed compensation amount to the employee.

If the employment ends early due to a decision by the employee, the employee must reimburse an agreed compensation amount to the employer. The reimbursement from the employee to the employer cannot be more than the salary that would have been due from the actual date of termination to the initial contract end date.

An active tax reporting unit is required for the legal entity the employee is in. Otherwise, an error message“You must mark the legal reporting unit associated to the legal employer as a tax reporting unit.” will be displayed and the calculation card can’t be saved.