Employee End of Service Benefits Policy
The end of service benefits policy is more than just a legal formality; it is a structured approach to recognizing employees' contributions, ensuring that both the employer's and employee's best interests are taken into account. It clarifies the end of service calculation base, full\ partial entitlement cases, its relation with contract types, and calculation and payment responsibility.
Created by
Naif O. Alawbathani
|
Human Resources Adviser
Written by HR experts Fully customizable Saudi labor law ComplaintShare the calculator with an HR college
What’s included in the end of service benefits policy?
This policy outlines how end-of-service benefits are managed for departing employees. It serves as a guide for both the company and employees.
The primary purpose of the end of service benefits policy is to provide crucial financial support to employees as they transition to a new role. It’s understood that this can be a challenging time, and this gratuity is designed to offer assistance when it's most needed.
The policy details the specific conditions an employee must meet to be eligible for full or partial benefits. It also thoroughly explains how to calculate end of service benefits, including how various factors such as allowances impact the final amount.
Furthermore, it established a clear timeframe for employees to receive their benefits. This ensures that any outstanding responsibilities from the contractual relationship, such as returning company equipments, are settled before the payment is disbursed. This approach safeguards the rights of both parties involved.
Finally, this end of service benefits policy explicitly affirms commitment to complying with all relevant end of service benefits Saudi law articles.
End of Service Benefits Policy - Table of contents
1. Overview
2. Objectives
3. End of Service Benefits (ESB)
4. Full Entitlement of ESB
5. Partial ESB Entitlement (Resignation)
6. Non-Entitlement to ESB
7. Contract Types & ESB Entitlement
8. Continuous Service
9. ESB Calculation and Payment
10. Legal Compliance
Why do you need an end of service benefits policy?
Reflecting the company's commitment to employee welfare.
Maintaining a positive company reputation both internally and externally.
Showing the company’s care about its people, even when difficult decisions must be made.
Reducing the likelihood of potential legal disputes.
How do you use the model?
Download the template and review the content.
Customize it with name, logo and legal entitlement rules and calculation method.
Add it to employee handbooks and employment contracts.
Ensure compliance by getting the end of service benefits policy reviewed by a legal/HR expert.
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