Month: December 2020
A Guide on Statutory Leaves in Oman
Sajin Rasheed, Director
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Granting leaves is a policy of companies that aims at the well-being of their employees. Leaves are allowed to them for their needs, and like every other country Oman also has certain fixed leaves to which the employees are entitled. Here we are discussing about the statutory leaves granted in Oman.
In Oman, employees are entitled to the following Leaves as specified in the labor law;
- Annual leave
- Sick leave
- Maternity leave
- Hajj Leave
- Compassionate leave
- Official national holidays
Annual Leave Policy in Oman
According to Article 61 of the Oman Labour Law, upon completion of six months of service with the employer, an employee is entitled to a paid annual leave for a period of thirty days for every calendar year.
Frequently asked questions
Is annual leave in the Oman based on calendar days?
Yes, as a general practice annual leave is calculated based on calendar days which include any public holidays and weekends that fall within this period.
Can the employer determine when the employee leave will be taken?
An employee and an employer can agree when the annual leave can be taken by mutual agreement. The employer may postpone the annual leave of a worker for one succeeding year. The worker shall go on leave at least for a period of two weeks once in every two years.
How is Oman national/public holidays that fall within an employee’s annual leave treated?
Any public holidays that fall within the period of annual leave will be considered as part of the leave.
Can an employee claim compensation for unutilized leaves at termination of contract?
Yes, The worker shall be entitled to the basic wage for the balance of his annual leave if he leave the company before exhausting such leave.
Can an employee work for another employer during their annual leave?
An employee is prohibited from working for another employer while taking his annual leave. If an employee does, employer has the right to recover the amount of wage paid for that period.
Sick Leave policy in Oman
As per Article 66, an employee whose sickness is proved shall have the right to a sick leave not exceeding in total ten weeks in one year whether such weeks are continuous or separate and the sick leave shall be granted as follows:
- The first and second week, with full gross salary.
- The third and fourth week, with three-quarters of the gross salary.
- The fifth and sixth week, with half the gross salary.
- The seventh to the tenth week, with a quarter of the gross salary.
Proof of sickness shall be confirmed through a medical certificate. However, in case there is a dispute, the matter shall be referred to the Medical Committee, provided for in Article (43) of this Law.
Maternity Leave Policy in Oman
According to Article 83, A female employee shall have the right to a special fifty-day maternity leave covering the periods before and after delivery with full salary for not more than three times during her service with the employer.
Hajj Leave policy in Oman
Muslim Employees get special leave to perform Hajj once and only after one year of continuous employment. The leave may be up to 15 days which shall be once throughout the period of service. This is a paid leave.
Paternity Leave
The Oman Labor law is silent about paternity leave and employees are not eligible for this leave as per Oman Law.
Marriage leave
Employees are granted a three-day paid marriage leave with a gross salary. This type of leave can only be granted once throughout the entire service period.
Compassionate Leave
Compassionate leave is granted for three days in the case of the death of a first-degree relative, and for two days in the case of a second-degree relative.
Examinations leave
Omani nationals employees who are studying in schools, colleges, or universities in the country are granted fifteen days per year for the purposes of taking their examinations.
Iddah Leave
In the case of a married Muslim female employee is widowed, she is granted 130 days of paid leave to mourn the death of her husband.
Oman Public Holidays
The fully-paid official holidays are as follows:
- New Year
- The Prophet’s Ascension (Israa Wal Miraj)
- Eid Al-Fitr: 4 days
- Eid Al-Adha: 4 days
- Prophet’s Birthday:
- Islamic New Year
- Oman National Day
*Please note, Islamic holidays are determined according to moon sighting
Leaves are a mandatory policy as it ensures to provide a work-life balance to the employees. Every employee deserves to have a break from the hectic office schedules and is allowed to have some time for themselves. Employees must look into the leave policies of the country they are working in as it will be different for every country.
For information on the payroll process in Oman click on this link
Payroll service in Oman
The payroll is a complicated process, which is why it is always better to outsource it. Outsourcing of payroll processes will ensure you with professional calculations and will ease your trouble of going through it and lets you focus on other functions in the organization.
Payroll involves highly sensitive data which is why one should be careful in choosing the right entity to outsource your payrolls.
HLB HAMT is a leading payroll outsourcing company and we provide highly experienced and professionals teams to handle your payroll. We take utmost care to process your payroll functions including preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our qualified team guarantees to provide the best quality services to you.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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Payroll Process in Kuwait: A brief overview
HLB Kuwait Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Payroll process is not a cakewalk; it is quite complicated that requires abundant time and resources. One needs to monitor tax updates and other statutory changes constantly and must also ensure that employees are paid the correct salary amount on time.
The payroll process will not be the same for all countries; each country has its own tax laws, minimum salary requirements, pension plans, gratuity schemes, leave policies, and many more. Here we have covered in detail about the payroll process in Kuwait, via a set of FAQs.
What is the frequency of Salary Payments in Kuwait?
Article 56 of the Kuwait labour law states that employees shall be paid as follows;
- Employees hired on monthly pay should be paid the wages at least once in a month.
- Other types of workers shall be paid at least once every two weeks.
What are the statutory pay components included in employee salary?
The Kuwait labor law does not define the components that should make up an employee’s salary; there are no defined statutory components.
What are the common pay components that are normally payable to employees?
Fixed components may include Basic Salary, Housing Allowance, Transport Allowance and Living Contribution. The variable components may include Overtime, Sales commission, Bonus, Incentives, Relocation allowances, Leave passage, Housing Allowance, Transport Allowance and Living Contributions.
What are the standard working hours in Kuwait?
The standard working hours are set at a maximum 8 hours a day or 48 hours a week. The standard working hours during Ramadhan is 6 hours a day.
What is the official salary payment currency in Kuwait?
Article 56 states that remuneration is to be made in the country’s currency, in this case, the Kuwait Dinar.
How is overtime calculation determined in Kuwait?
Overtime is any extra hours worked by an employee beyond the normal working hours. A worker on overtime hours is entitled to a 25% pay over his original remuneration. A worker working on his weekend rest day is entitled to a 50% pay over his original remuneration. Workers working over a national holiday are entitled to a 100% pay over their original remuneration.
How is gratuity accrued?
Employees are entitled to 15 days wages for each year of the first five years of service and one-month wage for each year of service thereafter. Calculations shall be made based on the last remuneration received by the worker. The total end-of-service benefit should not exceed one-and-a-half-year remuneration for employees.
To know more about Kuwait Gratuity Click here
When is gratuity paid to an employee?
Employees are eligible for gratuity pay at the end of their service period, at termination, death, or while resigning.
What are the statutory deductions that are made to employees in Kuwait?
There is no statutory deduction in the form of income tax in Kuwait. However Kuwaiti nationals are enrolled in Social security and hence they deduct a certain amount of their salary towards social insurance.
How is Kuwait Social contribution calculated?
For Kuwaiti Nationals employees, contributions are payable monthly by both the employer and employee. The employer’s contribution is 11% and the employee’s contribution is 10.5% of monthly salary up to a ceiling of 2750 Kuwait Dinars per month.
What is WPS in Kuwait?
Wage Protection System (WPS) was implemented to protect the employee’s salary payment. It is an electronic salary transfer system that allows institutions to pay workers’ wages via banks, approved and authorized to provide the service.
Are Employees eligible for Air Ticket Benefits in Kuwait?
There is no statutory requirement for employers to provide employees with air tickets. However, as a general practice, many employers provide their employees with annual or bi-annual air tickets to travel back to their home countries for vacation.
What is the leave policy defined under the labor law?
- Annual Leave
As per Article 70, workers in Kuwait are entitled to a 30-day paid annual leave. However, the entitlement to leave for the first year of work begins after at least 9 months of service for the employer. Official holidays and sick leaves during the year are not counted as annual leave. - Sick leave
As per Article 69, Employees are entitled to seventy-five-day sick leaves during the year broken down as follows:- first 15 days – at full pay
- following 10 days – at three-quarters of the pay
- following 10 days – at half pay
- following 10 days – at quarter pay
- following 30 days- without pay.
- Maternity leave
According to Article 24, a pregnant working woman shall be entitled to a paid maternity leave of 70 days, not included in her other leaves, if she gives birth within this period. After the end of the maternity leave, the employer may give the working woman, at her request, an unpaid leave for a period not exceeding four months to nurse her baby. - Hajj Leave
As per Article 76, An employee who has spent two continuous years working for the same employer shall be entitled to 21 days leave with pay to perform Al-Hajj if an employee had not performed hajj before. - Paternity Leave
In the Labour law of Kuwait, there is no Statutory Paternity Leave. - Marriage Leave
Marriage leave is not provided in Kuwait; employees can avail of their Annual leave for marriage. - Compassionate Leave
According to Article 77, the employer may grant an employee a special leave of three days in the event of a first- and second-degree relative’s death. - Iddah Leave
The Muslim working woman, whose husband has died, shall be entitled to a fully paid iddah leave for four months and ten days from the date of death. During this leave, the working woman cannot work for another employer. The non-Muslim working woman, whose husband has died, shall be entitled to a paid leave of 21 days. - Academic Leave
The employer may grant an employee a paid academic leave provided the worker shall return and work for the employer for a similar length of time. Academic leave should not exceed five years.
Please read our article on Kuwait leave policy here for a comprehensive understanding.
- Annual Leave
Is bonus or incentive payment mandatory in Kuwait?
No, Incentive and Bonus is totally based on Companies decision.
What are the items included in the End of Service Benefits calculation in Kuwait?
The employee is entitled to the following end-of-service benefits.
- End of service Gratuity
- Repatriation ticket if applicable
- Notice periods pay if applicable
- Any unutilized leave (Vacation) pay
- Any other outstanding payment or deduction
Holidays in Kuwait
The following National holidays are given in Kuwait.
- Arabic New Year: 1 day
- Isra’ and Mi’raj day: 1 day
- Eid Al-Fitr: 3 days
- Arafat day: 1 day
- Eid Al-Adha: 3 days
- Prophet’s Birthday (Al-Mawlid Al-Nabawi): 1 day
- National Day: 1 day
- Gregorian New Year: 1 day
Employee Benefits in summary:
- Salary
- Gratuity
- Annual Leave
- Sick leave
- Maternity Leave
- Iddah Leave
- Compassionate Leave
- Medical Insurance
- Overtime pay if applicable.
- Hajj Leave
Payroll Process
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our client’s entire payroll cycle that includes preparation of payroll reports, processing salary payments with WPS compliance, accrual management including Gratuity, and pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours on every project, ensuring our clients get refined consulting services to take your business forward.
Business owners may not have the time for payroll calculation as they have numerous other things to take care of. Outsourcing payroll functions will not only free up the time of the owner but will also promise professional service.
To know more about our payroll process, Click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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A Guide on Statutory Leaves in Kuwait
HLB Kuwait Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Every employee needs a break to relax and spend time with their loved ones, especially if they are spending excessive hours at their office. A stressed and hectic mind will have a negative impact on job performance and can even result in costly mistakes. Hence, leaves are more than mandatory not just for the well-being of the employee but for the employer as well.
Here we have covered in detail about the leave policy in Kuwait.
The Leaves granted to employees working in Kuwait under the labor law are as mentioned below
- Annual leave
- Sick leave
- Maternity leave
- Hajj Leave
- Compassionate leave
- Academic leave
- Official national holidays
A. Annual Leave Policy in Kuwait
As per Article 70, workers in Kuwait are entitled to a 30-day paid annual leave. However, the entitlement to leave for the first year of work begins after at least 9 months of service for the employer. Official holidays and sick leaves during the year are not counted as annual leave. The worker shall be entitled to a leave for the fraction’s year in proportion with the period he spent in actual service, even the first year of service.
FAQs
Is annual leave in Kuwait based on calendar days?
Yes, Annual leave is calculated based on calendar days. Official holidays during the leave period are not counted as annual leave
Can the employer determine when the employee leave will be taken?
The employer has the right to determine the date of the annual leave, with the consent of the employee. Similarly, an employee can accumulate his annual leaves entitlements for a maximum period of two years and can take them all at once subject to the approval of the employer.
How are national/public holidays that fall within an employee’s annual leave treated?
If any public holiday falls within the period of Annual leave, that will not be considered as part of the leave.
Can an employee claim compensation for unutilized leaves while termination of contract?
Yes, upon termination of the work contract a worker is entitled to a cash compensation for any leaves that have not been utilized.
Can an employee work for another employer during their annual leave?
No, an employee shall not work for another employer while on annual or sick leave provided. Where his employer establishes that he has done so, he may deprive him of his wage for the duration of the leave or recover any wages previously paid to him
B. Sick Leave policy in the Kuwait
Article 69 states that an employee is entitled to sick leaves at the following rate per annum.
- First 15 days at full pay.
- following 10 days at three-quarters of the pay
- following 10 days at half pay
- following 10 days at quarter pay
- following 30 days without pay. (Sick leave unpaid leave)
FAQs
What is the difference between sick leave unpaid and unpaid leave?
The days taken after the first forty-five days are regarded as sick leave unpaid and are different from unpaid leave. The days falling under this type of leave are included when determining the service period of an employee. This leave does NOT impact calculation of gratuity, outstanding vacation, air ticket payout or any other payroll accrual due to the employee.
C. Maternity Leave policy in Kuwait
As per Article 24, A pregnant working woman is entitled to a paid maternity leave of 70 days, not included in her other leaves, if she gives birth within this period.
Frequently asked questions concerning maternity leave
Can an employee take extra leaves after exhaustion of her maternity leave?
After the end of the maternity leave, the employer may give the working woman, at her request, an unpaid leave for a period not exceeding four months to take care of the baby.
Is the period taken as unpaid maternity leave included while determining the period of service?
Yes, this period taken as unpaid maternity leave is included while determining the period of service and is counted while calculating gratuity at the end of service.
Is a female employee entitled to any extra breaks post-delivery?
Yes, the nursing female employee is allowed a two-hour break per day so that she can take care of her newborn baby.
Can an employer terminate an employee who is on maternity leave?
The employer may not terminate the services of a working woman while she is on such leave or during her absence from work because of a sickness that is proved by a medical certificate that states that the sickness resulted from pregnancy or giving birth.
D. Hajj Leave
The worker who spent two continuous years working for the same employer shall be entitled to 21 days leave with pay to perform Hajj provided that he had not performed hajj before
E. Paternity Leave
There is no statutory paternity leave in Kuwait
F. Compassionate leave
According to Article 77, the employer may grant an employee a special leave of three days in the event of a first- and second-degree relative’s death.
G. Academic leave
The employer may grant an employee a paid academic leave to obtain a higher degree in his work field provided the worker shall return and work for the employer for a similar length of time that should not exceed five years.
H. Iddah Leave
The Muslim working woman, whose husband has died, shall be entitled to a fully paid iddah leave for four months and ten days from the date of death. During this leave, the working woman shall not be entitled to work for another employer.
The non-Muslim working woman, whose husband has died shall be entitled to a paid leave of 21 days.
I. Marriage Leave
Marriage leave is not provided in Kuwait, Employee can avail their Annual leave for marriage
J. Kuwait Public Holidays.
These are the public holidays in Kuwait;
- Hegeira New Year: 1 day
- Isra’ and Mi’raj day: 1 day
- Eid Al-Fitr: 3 days
- Arafa Day: 1 day
- Eid Al-Adha: 3 days
- Prophet’s Birthday: 1 day
- National Day: 1 day
- Gregorian New Year: 1 day
*Please note, Islamic holidays are determined according to moon sighting
Leaves are one of the many elements that help in promoting a relaxed workplace. This in turn leads to more motivated, productive and healthy working environment.
For information on the payroll process in Kuwait click on this link
Payroll Process in Kuwait
The process of payroll is little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing pay slips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
Did you find the blog informative?
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Get in touch
Whatever your question our team will point you in the right direction
Start the conversationSign up for HLB HAMT insights newsletters
Auditing and Technology in UAE
Sumesh Krishna, Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
COVID-19 has brought in tremendous changes to every sector across the world. Many businesses had to shut down, while the remaining shifted to digital or online business. Technology has been part of auditing for a few years now; but with the spread of the novel coronavirus, it has become an inevitable part of the auditing processes. Every business has been forced to change their modus operandi and had to learn the latest techniques.
The past few months have witnessed massive technological advancements and changes in every sector, including the government offices, in every country in the world. All began to sell their services online. As for auditing, technology has been in use for a few years now with computer-aided audit tools.
The Audit Quality Review (AQR) team at the Financial Reporting Council (FRC) publishes inspection reports every year. This year a report was published in March on the thematic review of “The use of technology in the audit of financial statements” Samples of tech implementations at the top six audit firms were considered for the review.
According to the review, the FRC concludes that all the firms’ common factor was data analytics for audit testing. Data analytics is used for risk assessment and substantive testing. Providing necessary training and tools for employees at all levels can bring in more meaningful results. But there are many difficulties that firms of all sizes face regarding the same. The data analytics have added advantages of AI assistance, natural language processing and machine learning.
More than the advantages, the FRC is trying to warn businesses about the risks in technology. AI and other algorithms are made through machine language, and it may be difficult for a commoner to understand. These machine language algorithms can result in prejudices and biases from the training data which can negatively affect the auditing process.
These issues can be resolved with design principles, ensuring that AI is identified and performed by following good practice. Communicating with all the employees is the next step to be taken to avoid such problems. The biases can be reduced by clearing the training data, by removing the sensitive fields, and through tests. The machine learning-based systems should also be treated like any other system in the entity, only then can we keep the technology under control without causing any issues for the company.
The proper functioning of the design principles, models, and controls will boost any entity’s confidence and the service provider should be able to assure the business owners.
Small audit firms use technology with ease, and this is due to the support of a third party who works with the entity by following their methodologies and approaches; this may not be possible for every auditing firm. The automated algorithms will give you a 100% result on testing where a small data is considered but it may not be the case for the entire population. The FRC’s report highlights the growth of natural language processing and data analytics which will be beneficial for the auditing sector.
The computers will now read and interpret the written language; this is seen in some audit firms now where the computers take on by reviewing the contracts and meeting minutes. Another technology that is gaining popularity in the industry is blockchain. The blockchain-based accounting system allows making changes and self confirms many contents.
These new technological advancements bring immense help to the auditors and make their jobs easy, but it requires special attention and regular checks to make sure that the technology is not ruining the system completely. Dealing with machines is easy unless you give them the power to destroy you.
Go to our service page: Audit and Assurance
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A Guide on Statutory leaves in Bahrain
HLB Bahrain Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Everyone deserves a break from the hectic work schedule. Apart from letting you fulfill your requirements, leaves are a way to recharge and refresh a person. Leaves are the rights of employees and they should be aware of the leave policies. Here we give you a glimpse into the leave policy in Bahrain.
Under Bahrain Labor Law, workers shall be granted with following leaves as per the Articles 78 to 89:
- Official Public holidays
- Annual leave
- Sick leave
- Maternity leave
- Hajj Leave
- Marriage Leave
- Paternity Leave
- Compassionate leave
- Iddah Leave
Official Public holidays
The following are the official leaves to be paid with full wages:
- New Year’s Day
- Labour Day
- Eid-al Fitr
- Day of Arafat
- Eid Al Adha
- Islamic New Year
- Ashura
- Prophet’s Birthday
- National Day
If any official holidays fall during the weekend, a day in lieu thereof shall be granted.
Annual Leave
Article 58 of the Bahrain Labor law says a worker can obtain annual leaves on the following basis:
- If an employee completes one year of service, he/she eligible for 30 days of Annual Leave
- If an employee period of service is less than one year, he/she is eligible for a proportion of his service in that year
Frequently asked questions
Can the employer determine when the employee leave will be taken?
As per Article 59, employer is permitted to schedule the dates of annual leave according to the business requirements and conditions. Subject to the provision of Article 61, a worker shall have the right to schedule his annual leave if he has to sit for an examination in any educational level, provided that notice shall be given to the employer, at least 30 days before going on leave.
Are Public holidays part of annual leave?
Any public holidays shall not be counted as annual leave and shall be entitled for full pay leave as specified in Article 64 of Bahrain labor law.
Can employee claim payment for unutilized leaves during termination of contract?
Article 59 of Bahrain labor law allows employee to claim their accrued leave balance if he/ she leaves the employment without utilizing those leaves.
Can an employee work for another employer during their annual leave?
A worker shall not work for another employer while on annual or sick leave provided for in Article 62. Where his employer establishes that he has done so, he may deprive him of his wage for the duration of the leave or recover any wages previously paid to him
Can an employer terminate an employee who is on leave?
No, an employer shall not be entitled to exercise the right to terminate a contract of employment or to dismiss a worker during the period of his absence on annual or other approved leaves of absence.
Sick Leave
Sick leave is granted to an employee in the following rate:
- First Fifteen Days – Full Pay
- Next Twenty Days- Half Pay
- Last Twenty Days – Without Pay
As mentioned in Article 65, a worker who has completed three months of continuous service shall have the right, in case of a sickness certificate by a doctor nominated by the employer.
See the following sample calculation simplifying the salary of an employee taking sick leaves.
Frequently asked questions
Can an employee who is on probation take a paid sick leave?
An employee who completes continuous three months of service has the right to take certified sick leave.
Can an employer terminate an employee due to Illness or Temporary disablement?
An employer cannot terminate an employee on account of illness prior to availing him, the period designated for Sick leave as provided in the law. However, the employer shall give him notice of his desire to terminate the contract fifteen days before the date of the worker’s exhaustion of his leave entitlement provided for in Article 117. If the worker recovers before the expiry of such period, the employer shall be barred from terminating the contract due to the worker’s illness.
Is an employee allowed to extend his sick leave?
A worker who is sick may make use of his annual leave balance in addition to the sick leaves to which he’s entitled.
What is the difference between sick leave unpaid and unpaid leave?
The days taken after Thirty- five days are regarded as sick leave unpaid and are different from unpaid leave. The days falling under this type of leave are included when determining the service period of an employee. This leave does NOT impact calculation of gratuity, outstanding vacation, air ticket payout or any other payroll accrual due to the employee.
Maternity Leave
As per Article 32, A female employee working in Bahrain shall be entitled to maternity leave as stated below:
- Sixty days with full Pay
- Additional fifteen days without pay
Frequently asked questions concerning maternity leave
Is the period taken for unpaid maternity leave included while determining the period of service?
Yes, this period taken as unpaid maternity leave is included while determining the period of service and is counted while calculating gratuity at the end of service.
Is a female employee entitled to any extra breaks post-delivery?
When a female employee resumes working, she shall be entitled two additional breaks not less than one hour a day to nurse her child until her child turns six months and she is also entitled for two periods of care for 30 minutes each until her child completes one year of age. These breaks are treated as part of her working hours and not part of the normal break.
What is the maximum no. of leave period a female worker can take without pay?
Subject to the provision of Article 34, a female worker shall be entitled to obtain leave without pay to provide care for her child who is not more than six years of age for a maximum of 6 months in each case and for three times throughout the period of her service.
Hajj Leave
As per Article 67, Muslim worker shall be entitled for leave on full pay for 14 working days to perform his pilgrimage obligation, if Employee has served his employer for a continuous period of 5 years. Such leave shall be granted once to the worker during his service period unless he has taken it during his employment with another employer.
Marriage Leave
In the event of marriage, employees are entitled to full pay for 3 days, only once.
Paternity Leave
A worker is entitled to leave for one day leave with full pay upon the birth of his child.
Compassionate Leave
- In case of death of his/her spouse or one of his relatives to the fourth degree of relationship, employee is entitled to full pay for 3 days.
- In case of death of his/her spouse’s relatives to the second degree of relationship, employee is entitled to full pay for 3 days.
Eddah Leave
- A Muslim female worker shall have the right to one month leave on full pay if her husband dies. She shall also be entitled to complete the Eddah from her annual leave for three months and ten days. If she does not have annual leave balance, she shall be entitled to leave without pay.
Almost all companies across all the countries have provisions for casual leave, sick leave, maternity leave, earned/privilege leave, loss of pay (LOP), compensatory off, etc. Along with these leaves, countries such as Bahrain grant employees paternity leave, compassionate leave, marriage etc, which let them manage their professional and personal lives perfectly.
For information on the payroll process in Bahrain click on this link
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
Did you find the blog informative?
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Oman Payroll Process
HLB Oman Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
A brief overview
For a non-specialized, payroll is about getting your wages/salary paid on a specific date of every month. For a professional, many factors need to be considered such as payroll policy, labor law and they must also ensure that every employee gets paid the actual amount after any deductions/ additional earnings.
Every country has different processes and policies with regard to payroll and also laws and regulations for the safety of Human resources. Here we have covered some important points about the Payroll Process in Oman.
What is the frequency of salary payment in Oman?
Article 51 of Oman Labour Law states as follows,
- Employees working on a monthly wage should receive their salaries at least once a month,
- If the employee works by piecemeal, or if the work period exceeds at least two weeks the employee should be paid for the work done in the first week, and the balance should be settled one week after completion of the job.
- In other cases, the employee should be paid once every week or fortnightly. If the employee agrees in writing with his employer, he can receive his salary once every month.
Are there any statutory pay components in Oman?
Oman labor law does not specify any fixed pay components that should make up an employee’s salary.
Which are the common pay components that are normally payable to employees?
Fixed components may include Basic salary, House rent allowance and Conveyance Allowance. The variable components may include Overtime, Sales commission, Bonus, Incentives, Relocation allowances, Leave passage etc.
What is the minimum Salary in Oman?
Oman’s minimum wage is 325 Omani riyals per month for Omani nationals. There is no specified minimum wage for expatriate workers. Please refer to the following article on the ministerial decree
What are the maximum working hours in Oman?
The maximum number of working hours in Oman is nine hours per day which includes at least half an hour of rest. During the holy month of Ramadhan, the maximum number of working hours for Muslim employees is six a day.
How is Overtime Calculated?
As per Article 70, the employee must get paid extra for the additional hours worked, and the employee is entitled for overtime work plus at least 25% against their basic salary. 50% overtime is provided when an employee works on his day of rest and 100% overtime is provided when an employee works during a national holiday.
How is gratuity accrued?
As per Article 39 of Oman Labor Law, Gratuity calculation is accrued against the last drawn basic salary on the following basis.
- A service period below 3 years at 15 Days per year.
- Three Years and above at one month (30 Days) salary per year.
Please refer to our detailed article on strong
When is gratuity paid to an employee?
Employees are eligible for gratuity pay at the end of their service period, at termination, death or at resignation. According to Article 39, the worker shall be entitled to a fraction of the year worked provided he has completed more than one year of continuous service
What are the statutory deductions that are made to employees in the Oman?
In Oman, payroll is not subject to income tax, and hence there are no mandated tax deductions. Whereas Omani nationals are subject to mandatory national pensions plans contributions.
Which employees qualify for Oman pension contribution?
Pension contribution in Oman is provided for Omani nationals only.
How is Oman pension calculated?
The contribution is fixed at 18.5% of the employee’s Gross Salary, of which 11.5% (includes 1% for occupational injuries and disease) is payable by the employer and 7% is payable by the employee. The maximum deduction base amount is OMR 3000. The employee Pension contribution is deducted from the monthly wages and the employer needs to pay this amount along with the employer contribution to the Pension Authority.
What is WPS in Oman?
The Wage Protection System (WPS) is mandatory in Oman. Companies in Oman need to adopt the Ministry of Manpower’s wages protection system to ensure that the employees are paid on timeUnder the WPS, companies are required to submit wage information to the Ministry of Labor via the e-service program. The WPS ensures that employee rights are protected and that salaries are paid according to agreed terms of employment contracts.
Are Employees eligible for Air Ticket Benefits in Oman?
There is no specific statute in the labour Law to provide return air tickets to the worker’s home country. However, many companies provide air tickets to employees annually and some of the companies extend this payout to employees’ dependents as well.
What is the leave policy defined under the labor law?
Annual Leave According to Article 61 of the Oman Labour Law, upon completion of six months of service with the employer, an employee is entitled to a paid annual leave for a period of thirty days for every calendar year.
Sick leave
As per Article 66, an employee whose sickness is proved shall have the right to a sick leave not exceeding in total ten weeks in one year whether such weeks are continuous or separate and the sick leave shall be granted as follows:
- The first fourteen days, with full gross salary. (1st and 2nd week)
- Day 15 to Day 28, with three-quarters of the gross salary. (3rd and 4th week)
- Day 29 to Day 42, with half the gross salary. (5th and 6th week)
- Day 43 to Day 70, with a quarter of the gross salary. (7th to 10th week)
A medical certificate must be provided as Proof of sickness. However, in case there is a dispute, the matter shall be referred to the Medical Committee, provided for in Article (43) of this Law.
Maternity leave
According to Article 83, A female employee shall have the right to a special fifty-day maternity leave covering the periods before and after delivery with full salary for not more than three times during her service with the employer.
Hajj Leave
Muslim Employees get a special leave to perform Hajj once and only after one year of continuous employment. The leave may be up to 15 days which shall be once throughout the period of service. This is a paid leave.
Paternity Leave
The Labor law of Oman is silent about paternity leave.
Marriage leave
Employees are granted a three-day paid marriage leave with gross salary. This type of leave can only be grated once throughout the entire service period.
Compassionate Leave
Compassionate leave is granted for three days in the case of the death of a first-degree relative, and for two days in the case of a second-degree relative.
Examinations leave
Omani nationals employees who are studying in schools, colleges or universities in the country are granted fifteen days per year for the purposes of taking their examinations.
Iddah Leave
In the case of a married Muslim female employee is widowed, she is granted 130 days paid leave to mourn the death of her husband.
Please read our article on Oman leave policy here for a comprehensive understanding.
Is employee Medical Insurance mandatory in Oman?
It is mandatory that an employer provide medical insurance to the employee during the duration of employment.
Is bonus or incentives payment mandatory in Oman?
Bonus and incentives payments are not mandatory according to Oman compensation laws. Companies provide these benefits to employee to attract top talent.
Is the employment of foreigners regulated in Oman?
Yes, an employer is not allowed to bring in foreign workers into the Sultanate of Oman unless he obtains approval from the ministry. Grant of such approvals depends upon the following.
- There must be insufficient qualified Omanis for the job.
- The employer meets the required percentages for Omanisation.
- The required fees are paid.
What are the items included in the End of Service Benefits calculation in Oman? The employee is entitled to the following end-of-service benefits?
- End of service Gratuity
- Repatriation ticket if applicable
- Notice period pay if applicable
- Any unutilized leave (Vacation) pay
- Any other outstanding payment or deduction
Employee Benefits in summary:
- Salary
- Gratuity
- Annual Leave
- Sick leave
- Maternity Leave
- Examination leave
- Marriage Leave
- Compassionate Leave
- Iddah leave
- Medical Insurance
- Overtime pay if applicable
It is mandatory for businesses to process payroll in a timely and accurate manner, be it in Oman or anywhere across the world. The law and procedures related to payroll system might vary for different countries, but the mandatory requirement remains the same. An accurate and streamlined system for payroll processing will mitigate risk and improve business operations vastly.
Payroll Process in Oman
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company in Oman, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours on every project, ensuring our clients get refined consulting services to take your business forward.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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All about End of services Gratuity in Kuwait
HLB Kuwait Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Article 51 of Kuwait Labour Law explains an end of service benefits as follows:
- The workers who are paid on daily, weekly hourly or piecework basis shall be entitled to 10 days for each of the first five years of service and a 15 days remuneration for each year thereafter. The total end of service benefit shall not exceed one-year remuneration.
- The workers who are paid on monthly basis shall be entitled to 15 days for each of the first five years of service and one-month remuneration for each year thereafter. The total end of service benefit shall not exceed one-and-a-half-year remuneration.
The worker shall be entitled to a benefit for the fraction of the year in proportion to the period of service. Loans and credits owed by the worker shall be deducted from the end of services benefit. The provisions of the Social Security Law shall be taken into consideration in this regard, and the employer shall pay the net difference between the amounts accrued due to the subscription of the worker in social security and to the end of service benefit.
Gratuity is the amount of money an employer is lawfully required to pay their employee and it is mainly dependent on two factors: last drawn salary and number of years of service. It is usually calculated at the time of resignation or termination. Here, our payroll experts in Kuwait take you through a set of questions and answers that will help in clearing all your doubts related to end-of-service gratuity in Kuwait.
What is Gratuity?
Gratuity is a monetary payment eligible to an employee as a lump sum at the end of his tenure. Gratuity payment is a liability to the employer which accrues as the employee service period progresses.
Who is entitled to a Gratuity?
Employees who are not beneficiaries of the Social Insurance Law are entitled to an end-of-service gratuity
When does an employee become eligible for gratuity payment?
Employees are eligible for gratuity pay at the end of their service period, upon the death of the worker, by a disability preventing his work performance, by a period of sickness which exceeds his entitlement to sick leave, the bankruptcy of the employer or if the establishment was permanently closed. If the female worker terminates the contract because of her marriage within a year after the date of marriage, she is also eligible for Gratuity.
What is the basis amount that is used to calculate gratuity?
As per Article 62 Kuwait Labour Law, the calculation of worker’s entitlements shall be made based on the last remuneration received by the worker. In the event where the worker is paid based on a daily basis, his remuneration shall be defined by an average of remuneration earned by him during the actual working days in the last three months.
What is the number of days used to accrue gratuity?
15 days wages for each year of the first five years of service and one-month wage for each year of service thereafter.
Below given table shows the calculation of accrual at a given time;
What is the effect of unpaid leave taken during the period of service?
Any period taken by the employee as unpaid leave is excluded when determining the service period. That means unpaid leave days are excluded when accruing gratuity. The period of service is reduced by the number of days served as unpaid leave.
Can an employer withhold gratuity payments?
As per Article 41 Kuwait Labour Law, the employer may terminate the services of a worker without notice, compensation, or benefit in the event where the worker has committed any of the following acts:
- If the worker has committed a mistake that resulted in a large loss for the employer.
- If it was found that the worker obtained employment through cheating or fraud.
- If the worker divulged secrets related to the establishment which caused or would have caused real losses.
What is the maximum limit of gratuity paid to an employee, at the time of final settlement?
The total end-of-service benefit should not exceed one-and-a-half-year remuneration for employees who are paid monthly. The total end-of-service benefit shall not exceed one-year remuneration for employees who are paid on a daily, weekly, hourly or piecework basis.
Does type of termination of an employment contract make any difference in gratuity payment?
Yes, If an employer terminates the contract of an employee (Termination by employer), the employee is eligible to receive gratuity as mentioned in Article 51. If an employee terminates the contract (Resignation of an employee), the employee is entitled to gratuity as specified in Article 53 of Kuwait Labour Law. The following table shows the treatment of Gratuity in these two scenarios:
Please see the below example for a better understanding table shows the calculation of gratuity payment in case of Termination
Table shows the calculation of gratuity payment in case of Resignation
In addition to termination, what are the types of separation in which employee is eligible for entire end-of-service benefits?
The worker shall be entitled to the entire end-of-service benefits as stated in the below-mentioned cases:
- If the duration of the contract expires without being renewed.
- If the female worker terminates the contract as a result of her marriage within a year after the date of marriage.
- If the work contract shall be terminated by the death of the worker or in the event where the worker is proven incapable of performing his work, or due to a sickness that uses up all the worker’s sick leave entitlements as evidenced by a medical report approved by competent official medical bodies
- If a final verdict was issued declaring bankruptcy of the employer
- If the establishment was permanently closed
- If worker terminates the contract as per Article 48 i.e.
- If the employer does not abide by the terms of the contract or the provisions of the law;
- If the worker was assaulted by or by provocation from either the employer or his deputy;
- If continuing work will endanger his safety and health pursuant to the decision of the medical arbitration committee at the Ministry of Health.
- If the employer or his deputy committed an act of cheating or fraud with regard to work conditions upon signing the contract.
- If the employer has accused the worker of committing a punishable act and the final verdict acquitted him.
- If the employer or his deputy commits an act that violates public morals against the worker
Whether you are someone who has resigned from work, or has been terminated by the employer, the gratuity that you are eligible to receive at the end of your service can be of great help while transitioning to your next job. Hence, it is important to be aware of the gratuity payment policies and any changes to it.
For information on the payroll process in Kuwait click on this link
Payroll Process in Kuwait
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our client’s entire payroll cycle that includes the preparation of payroll reports, processing salary payments with WPS compliance, accrual management including Gratuity, and pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
Did you find the blog informative?
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A Guide on Statutory leaves in the Saudi Arabia (KSA)
HLB KSA Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Leave policy is not just about granting leaves; it is about enlightening employees about their entitlements and enabling them to avail of leaves as per their convenience. Like any other country, the workers of KSA are also entitled to official leaves, holidays, and vacations. In this article, we have covered in detail about the leaves in KSA along with sample calculations.
Under Saudi Labor Law, employees will be granted with the following leaves.
- Annual leave
- Sick leave
- Maternity leave
- Special leaves (Hajj Leave)
- Compassionate leave
- Marriage leave
- Paternity leave
- Examination leave
- Iddah leave
- Official Public holidays
Annual Leave
According to Article 109 of the KSA Labor law, a worker is entitled to the following days of Annual leave:
- 21 days of annual leave, if an employee service period is less than 5 years.
- 30 days of annual leave, if service tenure with the employer is more than 5 years.
Frequently asked questions
Is annual leave in the KSA based on calendar days?
As per general practice, employers award employees annual leave based on the calendar days.
Can a worker postpone his annual leaves?
A worker can postpone his annual leave to the following year with the consent of the employer.
Can the employer determine when the employee leave will be taken?
As per Article 110, employers are entitled to determine when employees can take their leaves. The employer has the right to postpone Annual leave to a maximum of 90 days after the year-end. However, If work conditions require postponement, the worker’s consent must be obtained in writing. Such postponement shall not exceed end of the following year from when the leave is due.
Can an employee claim payment for unutilized leaves during termination of contract?
Article 111 of Saudi labor law, allows employees to claim their accrued leave balance if he/ she leaves the employment without utilizing those leaves.
Can an employee work for another employer during their annual leave?
No, a worker shall not work for another employer while on annual or sick leave provided for in Article 118. Where his employer establishes that he has done so, he may deprive him of his wage for the duration of the leave or recover any wages previously paid to him.
What happens when an employee takes unauthorized leave?
Employers may terminate the employee’s contract without compensation in the event the employee takes unauthorized leave for either: More than 30 non-consecutive days a year or for more than 15 consecutive days within a year. In the first case, a prior written warning must be delivered to the employee after 20 days of non-consecutive absence and in the second case the warning must be delivered after 10 days of consecutive absence.
Can an employer terminate an employee who is on leave?
No, employers cannot terminate the services of employees who are on annual leave.
Sick Leave policy in the KSA
Sick leave is granted for 120 days per annum (the year begins from the first date of the sick leave) at the following rate. The sick leave period can either be continuous or intermittent.
- The first 30 days: entitled for Full Pay (100%)
- The following 60 days: entitled for three-quarters of the wage (75%)
- And the following 30 days without pay.
As stated in Article 53, an employee on probation is eligible for Sick leave after completing 90 days of probation period.
See the following sample calculation simplifying the salary of an employee taking sick leaves.
Frequently asked questions
Can an employee who is on probation take paid sick leave?
No, as per Article 53, a worker is not entitled to any paid sick leave during the probationary period.
Can an employer terminate an employee on sick leave?
According to article 82, an employer cannot terminate an employee on sick leave as provided in the law. The worker may request that his sick leave be combined with his annual leave.
What is the difference between sick leave unpaid and unpaid leave?
The days taken after the 90 days are regarded as sick leave unpaid and are different from unpaid leave. The days falling under this type of leave are included when determining the service period of an employee. This leave does NOT impact the calculation of gratuity, outstanding vacation, air ticket payout or any other payroll accrual due to the employee.
Maternity Leave policy in KSA
Female workers shall be entitled to fully paid maternity leave for a period of 10 weeks to be divided at the female worker’s discretion. Such period may start four weeks prior to the expected date of delivery. A woman may not, under any circumstances, work during the six weeks immediately following delivery. She shall be entitled to extend the leave for an additional two months as unpaid leave. In the event of giving birth to a sick child or a child with special needs whose health condition requires a constant companion, a female worker shall be entitled to a one-month leave with full pay starting at the end of the maternity leave and she shall be entitled to extend the leave for an additional month as unpaid leave.
Frequently asked questions concerning maternity leave
Can an employee take extra leaves after exhaustion of her maternity leave?
Yes, an employee on maternity leave can combine such with her outstanding annual leave if she so wishes. This period can be granted to a maximum period of 180 days if the female employee so wishes.
Is the period taken for unpaid maternity leave included while determining the period of service?
Yes, this period taken as unpaid maternity leave is included while determining the period of service and is counted while calculating gratuity at the end of service.
Is a female employee entitled to any extra breaks post-delivery?
When a female resumes back to work, she shall be entitled to additional breaks not exceeding one hour a day to nurse her young baby. These breaks are treated as part of her working hours and not part of the normal break and can be during the first year after the delivery.
Can an employer terminate a female employee who is on maternity leave?
An employer may not terminate a female employee who is on maternity leave. Similarly, an employer cannot terminate her during illness resulting from pregnancy or delivery.
Hajj Leave
Muslim employees are entitled to take Hajj leave. This leave is granted for a period of not more than fifteen days or less than ten days, including the Eid Al Adha holidays. This leave should only be granted once during the entire service period if the employee has not performed Hajj before. To be eligible for this leave, the worker must have spent at least two consecutive years of service with the employer.
Are employees on Hajj leave paid?
Hajj leave is granted as a paid leave.
Paternity Leave
A male worker is entitled for three days paid leave after the delivery of his newborn baby.
Marriage leave
According to Article 113 of Saudi law, Employees who are getting married are entitled to five days paid leave.
Compassionate leave
In the case of the death of a first-degree or second-degree relative, an employee is granted five days of paid leave.
Examination leave
An employee who is enrolled in an educational institution is eligible for paid leaves to sit for an examination in unrepeated years. The number of days granted shall depend on the actual number of days taken to sit for the examinations.
Iddah leave
A Muslim female worker whose husband has died shall be entitled to four months and 10 days paid leave as the date of death to mourn her deceased husband. A non-Muslim female worker whose husband has died shall be entitled to fifteen-day paid leave as the date of death to mourn her deceased husband.
KSA Public Holidays
These are the public holidays in KSA.
- Eid Al Fitr:
- id Al Adha; From 10 to 12 of Dhu Al Hijjah (Feast of Sacrifice)
- National Day: 23rd September
*Please note, Islamic holidays are determined according to moon sightings.
The hectic routine of employees makes leaves a significant part of their lives. They are helpful in promoting good physical and mental health at the workplace and at the same time also contribute positively towards the work-life balance of employees. The leave policies will be different for all countries and it is mandatory to know the policy of the country where you work.
For information on the payroll process in KSA click on this link
Payroll Service in KSA
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our client’s entire payroll cycle that includes the preparation of payroll reports, processing salary payments with WPS compliance, accrual management including Gratuity, and pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
Did you find the blog informative?
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Start the conversationSign up for HLB HAMT insights newsletters
Organizational Consultancy in UAE
Raghunath. T, Director
Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Challenge
- The company ‘s Finance department was unable to meet requirements of user departments, and was perceived to be too slow, despite a team of 50 employees at the HO and about 100 employees in their branches
- The Board felt that this department’s functioning would be a hindrance for the company’s growth plans
Work done and Impact
- Analyzed the department structure, workflows and processes – in line with the set growth objectives
- Recommended realignment of workflows, and decentralization of the Finance department.
- Helped to redefine the Authority Matrix and introduced review systems to ensure that the decentralized structure works effectively.
- Identified and recommended areas of automation which enabled savings in manpower costs yet improved efficiency and controls
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Due Diligence in UAE
Raghunath. T, Director
Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Challenge
- Our client was evaluating an attractive business proposition to invest in a specialized product trading and technical services provider in the UAE. The client had industry knowledge and had a favorable view of the target company but wanted to determine the right transaction price for the acquisition.
Work done and Impact
- Our team of internal auditors and analysts conducted a detailed due diligence of the target company. This include in-depths analysis of their numbers as well as review of internal systems and controls
Action / Impact:
Were able to identify some key issues such as excessive dependencies of some customers and a steady marginal decline in revenue from their more profitable products.
There were also some accounting practices relating to provisions were incorrectly followed, as also some intercompany loans which were irregular.
The report helped our client to assess the projected business better to make a more informed valuation decision. They were also able to address compliance issues by making process changes after they completed the acquisition
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