RekazHR and payroll system
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End-of-service benefit and final settlement

When employment ends, Rekaz calculates the end-of-service benefit from the actual length of service, the reason for leaving and the last wage, adds the leave balance and other dues, deducts what the employee owes, and issues a final settlement ready for approval and signature.

End of service: what Rekaz offers

Calculated from the employee file

Start date, service periods, last wage and the reason employment ended.

Complete final settlement

The benefit, leave balance payment, salary due, less advances and custody.

Monthly end-of-service provision

The liability built up for each employee every month, ready for accounting entries.

Termination steps

Reasons for leaving, return of custody, and approvals before payment.

Service periods

Interrupted service and re-hiring counted precisely.

Signed documents

A final settlement that can be printed or signed electronically.

End-of-service benefit calculator Free tool: work it out now, step by step, under the Labor LawEmployee turnover rate calculator Free tool: work it out now, step by step, under the Labor Law

How the end-of-service benefit is calculated under the Labor Law

  • Half a month's wage for each of the first five years, and a full month's wage for each year after that; parts of a year count pro rata (Article 84).
  • When the employee resigns: nothing for less than two years, one third for two to five years, two thirds for more than five but less than ten years, and the full benefit at ten years or more (Article 85).
  • The full benefit is due in cases including leaving because of force majeure, or a female employee ending her contract within six months of marriage or three months of giving birth (Article 87).
  • The benefit is calculated on the last actual wage.

General information; the reference is the Saudi Labor Law, its implementing regulations and their amendments.

A worked example

  • An employee served 7 years with a last wage of SAR 10,000 and the contract ended without resignation: (5 years × 5,000) + (2 years × 10,000) = SAR 45,000.
  • Had the employee resigned after 7 years, two thirds would be due: 45,000 × 2/3 = SAR 30,000.

End of service: frequently asked questions

Does the system calculate end of service on resignation?

Yes, it applies the resignation shares (none, one third, two thirds, full) by length of service and shows the calculation.

Which wage is the benefit calculated on?

The last actual wage under the Labor Law; Rekaz takes its components from the pay elements set up in your organisation.

Is the leave balance part of the settlement?

Yes, payment for the remaining balance is calculated and added to the final settlement.

Can we see the end-of-service liability before an employee leaves?

Yes, the end-of-service provision report shows each employee's accumulated liability every month.

See also: Payroll and pay runs · Probation period management · Employee leave management · All questions

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Rekaz ERP · HR and payroll system

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What is Rekaz?

Rekaz (Rekaz ERP) is a Saudi cloud system for running organisations, Arabic-first with an English interface, used from the browser and phone. It brings HR and payroll, warehouses and procurement, and administrative correspondence into one system, and covers the whole employee journey from hiring to end of service and the final settlement.

Which modules does it include?

Employee records and the full employee file, contracts and letters, leave and balances, attendance and shifts, payroll and pay runs, end of service and settlements, probation, violations and penalties, GOSI, Muqeem and Mudad, recruitment, performance reviews and training, warehouses and inventory, procurement and suppliers, custody, administrative correspondence, payroll accounting entries, and reports and dashboards.

Does Rekaz follow the Saudi Labor Law?

Yes. It calculates leave entitlement, the end-of-service benefit and the resignation shares under the Labor Law, applies the schedule of violations and penalties from your work regulations, and lets you set policies to suit your organisation.

How do employees record attendance?

With ZKTeco fingerprint devices (connected and synced), from their phone inside the boundary of set work locations, or by importing an attendance file. Rekaz applies shifts and working rules, counts lateness and absence, and once the month is approved its effect moves to payroll.

Is there a mobile app for employees?

Yes. The employee portal installs as an app on Android and iPhone straight from the browser, with no app store. Employees request leave, advances and attendance corrections, see their payslip, leave balance and custody, and managers approve their team's requests.

How do approvals work?

You design the approval path for each request type yourself: direct manager, then HR, then finance, or any order you need. Each approver is notified, authority can be delegated during leave, and late requests are escalated automatically.

Does it calculate payroll automatically?

The monthly payroll centre brings together allowances and deductions and the effect of absence, leave, penalties and advances, flags differences before approval, then issues the pay run, employee payslips and payment orders, with the Mudad payment cycle, financial closing and accounting entries.

Does Rekaz handle GOSI, Muqeem and Mudad?

Yes: GOSI settings, reconciliation and transactions; Muqeem transactions with iqama expiry alerts (Saudi employees are excluded automatically); the Mudad payroll payment cycle; and a compliance and Saudization dashboard.

Does it cover recruitment and performance?

Yes. A careers portal for jobs and applicants, interviews and candidate scorecards, job offers, onboarding for new hires, then performance review forms and training throughout employment.

Is my data secure?

The connection is encrypted, administrator accounts have two-factor authentication, permissions follow each job, branch and department, every action is kept in an audit log, and the database is backed up.

Does it suit an organisation with several branches?

Yes. You define branches, departments and sections, grant permissions and approvals per branch and department, and see reports per branch or for the whole organisation.

Can we move our current employee data?

Yes. Rekaz imports employees from an Excel file, and we help you prepare your data when your subscription starts.

How much does it cost?

The price depends on the number of employees and the modules your organisation needs. Send us your name, organisation and headcount and we will send you a quote.

How do I start?

Press "Subscribe now", enter your name, organisation and number of employees, and WhatsApp opens with a ready message to the Rekaz team. We will contact you to show the system and set up your organisation's account.

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