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to their period of service. Unpaid absence days are excluded from the calculation. The gratuity is calculated based on the basic wage as follows: A wage of 21 days for each year of the first 5 years of service. A wage of 30 days for each year exceeding the initial 5 years. MOHRE has also introduced an Alternate End of Service Benefit Scheme as per Cabinet Resolution No. (96) of 2023. 5. Repatriation Expenses: Employers are responsible for bearing the repatriation expenses of the worker to the agreed-upon location, unless the worker has joined another employer, or the contract termination was due to the worker’s actions. In such cases, the worker bears the repatriation costs. Addressing Common Challenges and Effective Solutions Even with the regulatory framework in hand, the application often presents unique challenges. Let us explore some of these common obstacles and discover practical solutions. 1. Cultural and Legal Differences: Expats may face challenges due to cultural and legal differences. Employers should provide cultural sensitivity training and clear communication to help expats adapt. For instance, understanding
local customs and business etiquette can significantly ease the transition for new employees. 2. Awareness of Local Laws & Rights: Miscommunication or lack of awareness about local labour laws can lead to disputes. Employers should provide clear information about payroll processes and employee rights . 3. Compliance Risks: Compliance risks with expats, such as incorrect salary calculations and delayed payments may occur. To mitigate this the employer may opt for payroll software systems. 4. Currency Conversion Issues: The Monthly Contribution Wage of GCC nationals must be accurately converted to their home country’s currency. Employers should use reliable financial tools to ensure accurate deduction and compliance. Best Practices for Employers Having navigated the common challenges, it is crucial for employers to implement best practices that ensure compliance. Here is a list of strategies that can help: Conduct periodic payroll audits to recognise and rectify compliance issues. Invest in training HR and payroll staff on compliance matters. This
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GLOBAL PAYROLL MAGAZINE ISSUE 8
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