1. Implementing Payroll for the United Arab Emirates
  2. Options for Enterprise Structure Setup for HCM for UAE

Options for Enterprise Structure Setup for HCM for UAE

The United Arab Emirates (UAE) localization supports all the global employment models. Use the global setup tasks to define legal entities, legal authorities, and legal addresses.

Consider the following key points as you design and create enterprise structures for Oracle Fusion HCM and ensure that the UAE reports, such as Form 1, Form 2, and Form 7 are processed accurately.

Contract Data

To use the complete contract functionality, select any three-tier employment model or the Two-Tier Single Contract Single Assignment model. Use the Manage Legal Entity HCM Information task and select the employment model in the Legal Employer Details section.

Legislative Categories, Legal Jurisdiction, and Legal Authorities

Social Insurance is the legislative category. Use this legislative category when you create the legal authority Social Insurance office and the legal jurisdiction.

Legal Entities, Legal Employers, and Payroll Statutory Units

When you set up legal entities, you can identify them as legal employers and payroll statutory units, which makes them available for use in Oracle Fusion HCM. It is possible to create a legal entity that's both a legal employer and a payroll statutory unit (PSU).

For a UAE organization, there must be a one-to-one relationship between the legal employer and the PSU. Specify the legal entity as a legal employer and also as a PSU. Use the Social Insurance Number as the legal entity registration code.

Tax Reporting Units

The application creates the default tax reporting unit (TRU) for a legal entity automatically, when you create the PSU.

The UAE payroll reports are based on the PSU since there is a one-to-one mapping between the PSU and the TRU.

Payroll Statutory Units and Calculation Cards

PSU calculation cards are used for calculating contribution base for social insurance and gratuity by legal employer. Use the Manage Legal Entity Calculation Records task in the Setup and Maintenance work area to define entity-specific contribution information.

For the UAE, these employer calculation cards are available:

  • Employer Social Insurance Calculation Card

  • Employer Gratuity Calculation Card