Payroll Relationship Rule for Kuwait

The payroll relationship rule determines what happens when you terminate the last active employment assignment record for a payroll relationship.

It also determines whether the application creates a payroll relationship when you add a new assignment record for an employee. The Continuous Period of Service Rule is predefined for employees assigned to payroll statutory units (PSUs).

Continuous Period of Service Rule

When you terminate a work assignment, 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 payroll statutory unit. 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; else, it creates a new one.