Module 15 · Specialist · 9 min read

Compliance warnings and gratuity

You will be able to: Use the Compliance list and the 30 and 90 day tiles; Calculate UAE end-of-service gratuity step by step; Run the Gratuity Liability report.

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  • Self-check: not taken not done yet
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Two screens read the data on the employee record and warn you before something costs money: Compliance (documents) and the Gratuity Liability report (end-of-service pay).

Compliance

Employees ▸ Compliance lists every document that has already expired or expires within 90 days, soonest first: Emirates ID, Passport, Residence Visa and Labour Card. It only reads. You fix a document by typing the new expiry date on the employee record, then pressing Refresh.

The Employee Compliance screen listing documents that are expired or expiring soon such as the Emirates ID, passport, visa and labour card.

Employees, Compliance: documents that are expiring.

Employees, Compliance: documents that are expiring.
TileCounts
Expired DocsDocuments already past their date (a person with two expired documents counts twice)
Due · 30 DaysDocuments expiring in 0 to 30 days; one expiring today is here
Due · 90 DaysDocuments expiring in 31 to 90 days
  • An expired document stays on the list, however long ago, until a new date is entered.
  • Only active employees are checked, and a document with no date entered cannot appear.
  • The Employees list flags only documents due within 60 days and does not flag expired ones, so Compliance is the complete list.

Gratuity: the rule Zeyto applies

Gratuity is the end-of-service payment owed after a year of service. Zeyto follows the structure of the UAE private-sector rule (Federal Decree-Law No. 33 of 2021, Article 51, as summarised on u.ae) for every employee: nothing under 1 year of service; 21 days of basic pay for each year of service up to 5 years; 30 days for each year after the fifth; part years count in proportion; the total never above two years of wage, which Zeyto applies as 24 times the monthly basic. Only the basic salary is used. Housing, transport and other allowances are ignored.

A day of pay is Basic Salary × 12 ÷ 365. Service is counted from Joined On to the as-on date by calendar anniversary, with part of a year as a decimal. This day-of-pay rule is Zeyto's own choice: the law speaks of days of wage without defining the daily rate, and many HR calculators divide the monthly basic by 30 instead, which gives a slightly higher figure. Treat the Gratuity Liability report as an accrual estimate, and settle a leaver's final payment on the figure your accountant or the labour authority confirms.

3 yearsBasic AED 3,000, exactly 3 years. A day of pay is 3,000 × 12 ÷ 365 = 98.63. Three years at 21 days is 63 days, so gratuity is 98.63 × 63 = AED 6,213.70.
7 yearsBasic AED 5,000, 7 years. A day of pay is 164.38. The first 5 years give 5 × 21 = 105 days, and the 2 years beyond give 2 × 30 = 60 days. Total 165 days × 164.38 = AED 27,123.29.
The capBasic AED 3,000, 30 years. The formula gives AED 84,328.77, but the cap is 24 × 3,000 = AED 72,000, so gratuity is AED 72,000.
Under a yearSomeone who joined 10 months ago accrues AED 0, however large the salary. At exactly 1 year on AED 4,000 basic, gratuity is 21 × 131.51 = AED 2,761.64.

Gratuity Liability report

The report lists each active employee with a Joined On date, with Joined, Service (yrs), Basic and Accrued Gratuity as on a chosen date, and a TOTAL of accrued gratuity. It reads and posts nothing: it shows what you owe, not a journal. Past dates are an estimate, because it uses today's records. A person who joined after the as-on date shows 0, and Inactive people are not listed.

The Gratuity Liability report listing each employee with years of service and the end-of-service amount owed.

Reports, Gratuity Liability.

Reports, Gratuity Liability.
Watch outAn active employee without a Joined On date is not listed at all. If the report total looks low, check for missing join dates first.

Try it in the demo

  1. Open Employees ▸ Compliance in the demo and read the three tiles and the Status column.
  2. Open Reports and find Gratuity Liability under Payroll / Compliance. Run it and check one row by hand.
  3. Pick an employee and recalculate their gratuity using 21 and 30 days with the formula above.
Open the live demo

Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.

Key takeaways
  • Compliance covers expired and the next 90 days; the Employees list flags 60 days only.
  • Gratuity uses basic only: 21 days to 5 years, 30 days after, cap 24 months' basic.
  • Day of pay = basic × 12 ÷ 365; nothing under 1 year.
  • Gratuity Liability reads and posts nothing.

Check yourself

5 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.

1. How do you clear a document from the Compliance list?

2. Using Zeyto's gratuity formula (a day of pay is basic × 12 ÷ 365): basic AED 3,000 and exactly 3 years of service. What is the accrued gratuity?

3. Basic AED 5,000, 7 years of service. How many days of pay does the formula count?

4. Using Zeyto's gratuity formula: basic AED 5,000 and 7 years of service. What is the accrued gratuity?

5. An employee has 10 months of service. What gratuity does Zeyto accrue?

Practice questions for this module · Printable study sheet