Terminate an Employee for Saudi

Terminate the work relationship of an employee at the end of employment period. An employee termination impacts calculation and reporting. Following are the effects of terminating an employee:

• Social insurance isn't processed for the month of termination unless it's the last day of the month.

• If the employee is eligible, gratuity payment is generated automatically.

Termination of an employee involves the following steps:

1. Terminating a work relationship

2. Editing an Employee Gratuity Details calculation card

3. Running payroll and viewing payroll run results

Terminate a Work Relationship

HR specialists terminate the work relationships of employees to whom they have security access.

To terminate a work relationship:

1. In the Person Management work area, select Manage Work Relationship task.

2. On the Manage Work Relationship page, from the Actions menu, select Terminate.

3. On the Terminate Work Relationship page, enter the termination details including the termination reason.

   Note: Based on your selection in the Termination Action field, the values in the Termination Reason field are available.

4. Click Review and then click Submit.

Edit an Employee Gratuity Details Calculation Card

You must set your Payroll Product Usage to Oracle Fusion Payroll or Payroll Interface for automatic card creation. Upon employee termination, the Employee Gratuity Details calculation card is created automatically. When the card is created, the gratuity component, component details, and the association are automatically created. Payroll managers can edit an Employee Gratuity Details calculation card.

To edit an Employee Gratuity Details calculation card:

1. In the Payroll Calculations work area, select Manage Calculation Cards task.

2. On the Person page, search for the person for whom you want to review the Employee Gratuity Details card.

3. In the Search Results section, select the Employee Gratuity Details card.

   The Manage Calculation Cards page opens.

4. Edit the required information on the Employee Gratuity Details calculation card.

5. In the Employee Gratuity Details section, create the calculation component details. Follow these steps:

   1. Click Create.

   2. In the Override Amount field, enter an override amount.

   3. Click Done.

      Note: If an override amount is specified, this amount overrides the reference formula for the gratuity calculation defined at the payroll statutory unit level, and also the calculation formula defined at the legislative level.

Run Payroll and Viewing Payroll Run Results

After you verify that payroll managers verify that the Employee Gratuity Details calculation card is created for the month of termination, payroll is run for the payroll definition ZHRX-SA-V-Monthly Payroll.

To run payroll and view payroll run results:

1. In the Payroll Calculations work area, select Calculate QuickPay task to submit a flow that calculates the run results for a person without waiting for the standard payroll run.

   Note: Run payroll for the payroll definition ZHRX-SA-V-Monthly Payroll.

2. Select View Person Process Results task to view and verify the run results.

3. On the View Person Process Results page, select the terminated employee's name, process, date earned, and the Saudi legislative data group.

4. Click Search.

5. View all the relevant information for a specific employee payroll run. Specific information related to termination is as follows:

   • In the Earnings section, view the gratuity amount paid.

   • In the Deductions section, view the social insurance deductions as zero.

     Note: Social insurance deductions are calculated as zero, since it's the month of termination.