What is meant by the end-of-service settlement (final settlement)?

Establishments follow a systematic approach in the process of payroll, as a fixed salary cycle is followed for all employees of the company, in which company rely on setting a specific date for collecting variables, or the so-called deduction period (CUT-OFF), in order to ensure the company transfer of employee salaries on the specified date.

However, there are some cases in which it is possible not to follow the payroll cycle and other expenses, the most prominent of which are:

Final Settlement

Upon the termination of the contractual relationship between the employee and the company, the company must ensure that the payroll are paid for the days he worked until the last day of work, in addition to other entitlements such as end-of-service gratuity, unused annual leave balance entitlements, and any other employee entitlements, as well as deducting any Dues or deficits owed by the employee. Thus, we form what is called (the employee’s final settlement).

Based on the text of Article 88 of the Labor Law, the disbursement of the employee’s final settlement benefits cannot be delayed until the regular payroll cycle arrives. Therefore, establishments directly calculate and clear the final settlement outside the payroll cycle (off-cycle payroll) after the employee’s last day of work.

How does Jisr help in the process of calculating the final statement:

Through Jisr, the competent or authorized person can automatically create the final statement for the employee immediately after the human resources official or the competent person terminates the employee’s services on the system, as Jisr automatically calculates the following transactions within the final statement:

• Salary for working days that were not paid to the employee (until the last working day).
• Entitlements for unused annual leave balance.
• Indemnity.
• Deductions due from the employee (advances, social insurance)
• Attendance statement discounts can also be included by sending a request to review and approve the employee’s attendance statement during his last days of work in the facility.
• Overtime hours upon approval of the employee’s attendance sheet.
• In addition to days of absence or tardiness, etc

manual deductions or additions can be included in the settlement during the preparation process, and then sent for confirmation and payment

To facilitate the sequence of operations: starting with Payroll, and then Final Settlement.

💡 Note: This option will be available and visible only to people who have the authority to obtain leave and end of service.