Continuous Period of Service Payroll Relationship Rule for Saudi Arabia

The Continuous period rule payroll relationship rule is predefined for employees assigned to payroll statutory units (PSUs). The payroll relationship rule determines what happens when you terminate the last active employment assignment record for a payroll relationship. And also whether the application creates a payroll relationship when you add a new assignment record for an employee.

Continuous Period of Service

When a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated. Subsequently, when you create an assignment, the application searches for an active payroll relationship of the same type and for the same PSU. If a payroll relationship exists, date validation occurs to determine whether to use the existing payroll relationship or to create a new one. The application compares the start date of the new assignment to the last standard earnings date of the existing payroll relationship. If the start date is before the last standard earnings date, the application uses the existing payroll relationship, otherwise, it creates a new one.