Saudi End of Service | Saudi End of Service (EoS) Management | Employee Exit Automation | Automated Accounting Integration
Saudi End of Service | Saudi End of Service (EoS) Management | Employee Exit Automation | Automated Accounting Integration
- Saudi Labor Law Compliance (Articles 84 & 85) – Fully complies with Saudi Labor Law by automatically applying the correct End of Service (EoS) eligibility, gratuity calculation, resignation, and termination rules.
- Automated End of Service Calculation – Automatically calculates End of Service awards using the employee's last monthly wage, service duration, contract type, and employment separation reason.
- Employee Eligibility Verification – Validates employee eligibility before processing End of Service requests based on continuous service requirements and applicable labor regulations.
- Advanced Gratuity Calculation Engine – Supports accurate gratuity computation for completed years, partial years, employer termination, employee resignation, contract expiry, and customized separation scenarios.
- Intelligent Multi-Level Approval Workflow – Digitize the complete approval process with configurable workflow: HR Officer → HR Manager → Accountant, including approval history, activity tracking, and audit logs.
- Automatic Accounting Integration – Automatically generates accounting journal entries for gratuity provisions, settlement expenses, payment transactions, and accounting reconciliation without manual intervention.
- One-Click Employee Offboarding – Complete the employee exit process by automatically archiving employee records, closing employment contracts, updating employee status, and finalizing End of Service settlements.
- Saudi & Global Termination Management – Supports Saudi Labor Law termination reasons while allowing configurable global termination categories for multinational organizations and diverse HR policies.
- Dedicated End of Service Request Management – Manage EoS requests through dedicated Request Forms, List View, Kanban View, smart search, advanced filters, and intuitive navigation.
- Real-Time Approval & Settlement Tracking – Monitor every stage of the End of Service process with live approval status, settlement progress, accounting updates, payment status, and complete approval history.
- Complete Odoo Integration – Seamlessly integrates with Odoo Employees, HR, Payroll, Employee Contracts, Approvals, Accounting, Activities, and Documents for a unified HR and Finance workflow.
- Reduced Manual Work & Higher Accuracy – Eliminate manual calculations, reduce processing time, minimize human errors, and improve financial accuracy through intelligent automation.
- Centralized Employee Exit Management – Manage employee settlements, accounting entries, contract closure, employee archiving, and final payments from a single integrated workflow.
- Enterprise-Ready User Experience – Modern and user-friendly interface designed for HR, Payroll, Finance, and Management teams with responsive views, structured workflows, and simplified navigation.
- Transparent Audit Trail – Maintain a complete history of approvals, accounting transactions, settlement records, and user activities to improve operational transparency and compliance.
- Configurable & Scalable Solution – Designed to support organizations of all sizes with configurable workflows, accounting settings, approval stages, and flexible business rules that adapt to organizational requirements.
- Enhanced HR & Finance Productivity – Accelerate employee settlements, improve collaboration between HR and Finance departments, standardize End of Service procedures, reduce administrative workload, and ensure consistent compliance with Saudi Labor Law.
- Streamline Saudi End of Service (EoS) management with a fully automated workflow that ensures compliance with Saudi Labor Law, simplifies employee settlements, and minimizes manual effort.
- Automatically validate employee eligibility and calculate End of Service benefits according to Saudi Labor Law Articles 84 & 85 using the employee's last wage, service period, contract type, and separation reason.
Saudi End of Service (EoS) Award - Articles 84 & 85
- Manage End of Service (EoS) requests and gratuity settlements in accordance with Saudi Labor Law using a fully automated approval workflow, seamless HR & Accounting integration, and automated employee offboarding.
-
1. Employee Eligibility
- Employees become eligible after completing at least 2 years of continuous service, except in legally permitted special cases.
- Applicable to both Fixed-Term and Indefinite employment contracts.
-
2. End of Service Award Calculation (Article 84)
- First 5 Years: Half month's wage for each completed year of service.
- Beyond 5 Years: One full month's wage for each additional completed year.
- Partial years are calculated proportionally based on completed months and days.
- The calculation is based on the employee's last monthly wage, including the basic salary and fixed contractual allowances where applicable.
General FormulaEOS Award = (0.5 × Monthly Wage × Service Years up to 5 Years) + (1.0 × Monthly Wage × Service Years exceeding 5 Years) -
3. Termination & Resignation Rules (Article 85)
-
Employer Termination / Contract Expiry
Employee receives 100% of the calculated End of Service Award. -
Employee Resignation
The entitlement is automatically calculated according to the employee's completed years of service: - Less than 2 Years – No End of Service Award
- 2 to less than 5 Years – 1/3 of the Full End of Service Award
- 5 to less than 10 Years – 2/3 of the Full End of Service Award
- 10 Years or More – 100% of the Full End of Service Award
-
Employer Termination / Contract Expiry
Saudi End of Service (EoS) Award (Gratuity) Calculation Rules
Configure role-based access rights to establish a secure and well-structured End of Service (EoS) approval workflow. Each user role is assigned specific responsibilities, ensuring proper authorization, transparency, and compliance throughout the employee settlement process.
- EoS User / HR Officer: Create, review, and submit End of Service requests for employees.
- EoS HR Manager: Review submitted requests, verify employee eligibility, approve or reject requests, cancel requests when required, or reset requests to Draft for further modifications.
- EoS Accountant: Approve HR-authorized requests, automatically generate accounting journal entries, register End of Service payments, and complete the financial settlement process.
Configure all required settings for Saudi End of Service (EoS) processing from a centralized configuration screen. Define accounting journals, expense and payment accounts, approval workflow options, automatic journal entry creation, employee archiving, contract cancellation, and other automation settings to ensure a fully compliant and efficient End of Service process.
- Configure End of Service accounting journals and financial accounts.
- Enable automatic journal entry creation for gratuity settlements.
- Configure employee archiving and contract cancellation after settlement.
- Seamlessly integrate with Odoo Employees, HR, Payroll, Contracts, and Accounting modules.