Hire an Employee for UAE

Let's go through the process of hiring a UAE employee and running a payroll for the same.

More information on the hire task for UAE can be found in Oracle_Fusion_HRMS_for_UAE-HR_Setup.

To perform tasks related to person and employee management, sign- in to the application using a role connected to a user, such as Human Resource Specialist.

1. Select the Hire an Employee task.
2. Select New Person from the Quick Actions menu.
3. Select the sections for which data is to be entered.
   Note: Some sections such as Personal Details and Employment info are displayed explicitly.
4. Enter the details in the applicable sections.
5. On the Person Details section, provide the required information.
6. On the Employment Details section, provide the required information.
   Note: When hiring an employee with a fixed term contract you must enter the duration of the contract to be used in the gratuity calculation, if gratuity is applicable.

Assign Additional Information

Now that the employee has been hired a set of data needs to be assigned to the employee in order to be processed and paid.

Basic information to be assigned is:

• Remuneration Information
• Calculation Cards
• Personal Payment Method

Assign Remuneration

Remuneration to the employee can be assigned either through Salary Basis and Compensation (that will automatically generateelement entries, or directly create element entries.

Note: You enter remuneration using the setup for Salary Basis and Compensation.

Adding a Salary:

1. Sign in to the Oracle Fusion application using a role that has the profile of a Payroll Manager (PAY_MGR_ALL).
2. Select Change Salary in the Person Management work area.
3. Click Propose New Salary, then complete the fields on the Add Salary window.
4. On the Manage Salary page, select the previously created Salary Basis and enter a Salary Amount, such as 2500 AED per month:
   Note: Selectable salary basis are limited to the ones defined for the LDG assigned to the payroll statutory unit connected to the legal employer of the employee.

Adding Compensation:

1. Select Individual Compensation in the Person Management work area.
2. On the Manage Compensation page, click Award Compensation.
3. On the Award Compensation window, select the previously created compensation plan and enter the compensation amount, such as 500 AED as additional allowance.
   Note: When you save this record, an element entry with the specified start and end dates is automatically generated. You can view the entryon the Element Entries page:

Calculation Cards

For payroll to be processed for a UAE employee, the Employee Social Insurance Details card must be present. This card is automatically generated in the hire process if the citizenship information is updated.

1. Select the Calculation Cards task in the Payroll work area.
2. Select the employee and verify that Employee Social Insurance or Pension Fund Details card is created.
3. Review the default values that have been assigned to the card and if needed edit the data.
   Note: If the card is automatically created as part of the new hire process, the value for Citizenship field is derived from Person Information. If the card is created manually, the citizenship is defaulted to United Arab Emirates. The default value for the Exception Type field is blank. If no value is specified, then the employer and the employee each pay their contributions.

Personal Payment Method

Once banks and branches have been loaded in the system and a payroll definition has been assigned to the employee, you can add payment methods to the employee record.

1. Select the Personal Payment Methods task in the Payroll work area.
2. Search for and select the employee.
3. On the Manage Personal Payment Methods page, click Create.
4. On the Personal Payment Method page, select the Organization Payment Method for this employee.
   Note:

   Note: An employee can have multiple payment methods. Use the Payment Amount Type and Percentage fields to manage distribution across different payment methods.

Run Payroll and Review Results

Now that the basic information has been entered, it is possible to run payroll and review the related results. This section describes the minimum data needed to run payroll, more detail on payroll process can be found in the global payroll guides.

1. Select the Payroll task from the Navigator.
2. Select the Submit a Flow task in the Flow Submission and Results work area.
3. Select the LDG for which the payroll is to be calculated and flow pattern Calculate Payroll.
4. Enter the parameters to run the report.
   • Payroll Flow: Identifier for the process that is being run. You can enter a value each time the process is executed. You can chooseany format to describe the payroll flow.
   • Payroll: Payroll definitionfor which payroll is being run.
   • Payroll Period: Period for which payroll is calculated. For UAE, the period is always monthly.
   • Run type: Optionally, the report can be run for a specific establishment
5. Click Submit.

Review Payroll Results

You can review the payroll results once the process is completed successfully.

1. Select the Process Results Summary task in the Payroll work area.
2. Filter the results using the appropriate parameters such as for example the Payroll Name (Payroll Definition).
3. Select the desired row and review the results using Satement of Earnings.
   Note:

   • The income subject to social insurance is made up of the two earnings that were assigned to the employee through the remuneration definition.
   • Deductions are driven by the social insurance calculation cards. Note that when exception type Employee pays both contributions was selected, both the employee and employer contributions are discounted from Net Pay.

Government Sector Employees

To run the Monthly Contributions - Government Sector report, an employee belonging to a government sector legal employer must be hired.

The legal employer must have the Government Sector selected in the legal entity calculation card for the social insurance details component.

Additionally in order to generate cheque payments, a cheque type payment method must be associated the employee.