How to use the End of Service to calculate and settle final payment for employees.
This video shows how to calculate the End of Service.
To view step-by-step instructions, please scroll below.
Step 1
From the Home dashboard, go to the Finance > Payroll table.
Step 2
Select the employee whose End of Service needs to be calculated.
Step 3
Click on Go to profile.
Step 4
Click on End of Service
Step 5
Select Departure Date
Step 6
Select Reason for Departure.
Admin can select from the 4 types of reasons behind departure:
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Termination
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Resignation without notice
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Resignation with notice
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End of contract
Step 7
Select Contract Type.
Admin should select the contract type based on the initial contract that this employee signed for:
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Unlimited
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Limited
Click on Calculate.
Step 8
Check the addition components of the End of Service amount for the employee:
(1) Additions - Gratuity and Leave encashments
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Gratuity is calculated as per the UAE labor law; however it can be edited. For non-AED employees, gratuity will be 0.
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Leave encashment is calculated based on time-off data.
To edit leave encashments, click on Edit beside the relevant leave type (i.e. Vacation, Monthly Accrual or Sick). You may click on Edit beside either Remarks or Amount. Edit the amount as required. Click on Save.
(2) Additions - Monthly pay and allowances
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Monthly pay - The monthly pay is calculated for the departure month.
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Variable pay - Since variable pay cannot be predicted for future payroll months, variable pay will not show if departure date is a future payroll month.
Work expenses - Since work expenses cannot be predicted for future payroll months, work expenses will not show if the departure date is a future payroll month.
Step 9
To add any further amounts, click on Add new additions.
Select the Type - Advance or Leave Encashment, the Date Incurred, and the Amount.
Optional: You may enter a Reference #, a remark in the free text box beside Note or upload a proof of expense document if you want.
Once completed, click on Save.
Review the Total of Additions to verify the amount is correct.
Step 10
Check the deduction components of the End of Service amount for the employee:
Deductions - Any amount that has to be recovered/deducted from the employee's final settlement amount should be updated here.
Step 11
To add a new deduction, click on Add new deductions and select New deduction (if it is a one-off deduction).
Note: If you just need to calculate the End of Service amount for an employee who will be having a future departure date, you can also create a New recurring deduction (if the amount has to be deducted over multiple months).
For New deduction, select Type, Date Incurred and Amount.
Optional: You may enter a Reference #, a remark in the free text box beside Note or upload a proof of expense document if you want.
Once completed, click on Save.
For a New recurring deduction, select Type, Date Incurred and Total Amount. Use the +/- beside Term to select the number of months it will occur in. Adjust the amount beside each month if necessary.
Optional: You may enter a Reference #, a remark in the free text box beside Note or upload a proof of expense document if you want.
Once completed, click on Save.
Once all changes have been made click on Save.
Step 12
Click on Review and submit the transaction. If needed click on Print Final Settlement.
Check if everything is accurate and click on Submit transaction.
