Oracle fusion hrms_for_uae_hr_setup_white_paper_rel11

An Oracle White Paper
March 2016
Oracle Fusion HRMS (United Arab Emirates):
HR Implementation and Functional
Considerations

Oracle Fusion HCM: HR Implementation and Functional Considerations
Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes
only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release, and
timing of any features or functionality described for Oracle’s products remains at the sole discretion of
Oracle.

Introduction ................................................................................................................ 1
What’s in this Document......................................................................................... 1
Other Information Sources...................................................................................... 1
Document Updates................................................................................................. 2
Comments and Suggestions................................................................................... 2
Organization Structures.............................................................................................. 3
Introduction............................................................................................................. 3
Enterprise............................................................................................................... 3
Creating an Implementation Project........................................................................ 3
Verifying Geographies............................................................................................ 5
Defining Enterprise Structures................................................................................ 8
Legal Jurisdictions.................................................................................................. 8
Legal Addresses................................................................................................... 11
Legal Authorities................................................................................................... 12
Legislative Data Groups ....................................................................................... 12
Legal Entities........................................................................................................ 13
Legal Entity Registrations..................................................................................... 17
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units.... 18
Legal Reporting Units (Release5)......................................................................... 20
Legal Reporting Units (Release7 and above) ....................................................... 22
Business Units...................................................................................................... 25
Workforce Structures................................................................................................ 26
Locations.............................................................................................................. 26
Divisions............................................................................................................... 27
Departments......................................................................................................... 28
Reporting Establishments..................................................................................... 29
Roles in Organization ........................................................................................... 30
Actions Reasons .................................................................................................. 35
Managing Workforce Structures ........................................................................... 38
Personal Data Setup ................................................................................................ 40
Addresses ............................................................................................................ 40
Names.................................................................................................................. 41
Legislative Information.......................................................................................... 41
National Identifiers................................................................................................ 42
Contacts............................................................................................................... 43
Visa...................................................................................................................... 43
Passport............................................................................................................... 44
Disability............................................................................................................... 45

Contracts.............................................................................................................. 45
Hiring a Worker ........................................................................................................ 46
Maintaining Person and Employment Information................................................. 51
Terminating a Worker............................................................................................... 56
Additional Information for Payroll Interface ............................................................... 57
Calculation Cards..................................................................................................... 59
Employer Calculation cards.................................................................................. 59
Personal Calculation Cards .................................................................................. 66
Banking Setup.......................................................................................................... 84
Banks ................................................................................................................... 84
Bank Branches..................................................................................................... 85
Bank Accounts ..................................................................................................... 86
Organization Payment Methods............................................................................ 87
Consolidation Groups and Payroll Definitions........................................................... 91
Consolidation Groups........................................................................................... 91
Payroll Definitions................................................................................................. 91
Person Payment Information .................................................................................... 95
Assigning a Payroll to the Employee .................................................................... 95
Assigning Payment Methods to the Employee...................................................... 96
Elements and Compensation.................................................................................... 98
Elements and Element Templates........................................................................ 98
Salary Basis and Compensation......................................................................... 103
Payroll processing after termination........................................................................ 108
Conclusion ............................................................................................................. 110
Glossary................................................................................................................. 110

1
Introduction
This paper identifies and describes HR setup tasks for Oracle Fusion Human Capital Management for the United
Arab Emirates (UAE).
What’s in this Document
This document is intended to support the implementation team in understanding:
 The organizational structures that need to be defined to manage HR processes for the UAE.
 The UAE-specific data that needs to be provided.
 Where and how predefined UAE-specific data can be integrated with customer-specific data.
 The data that needs to be defined to hire and maintain a UAE worker.
 The UAE-specific business rules that have been implemented.
 The HR processes that can be executed for the UAE.
 Information required supporting interface or transferring data to a third-party payroll system.
 The migration process from a legacy system, by identifying the UAE-specific fields that need to be populated by
such migration.
This documentation can also be beneficial to end users who run application processes after implementation.
Note: This document should not be considered a comprehensive guide for HR implementations. The
focus of this document is UAE-specific processes and information. For information about generic tasks,
the implementation team should refer to documentation listed in the following section.
Other Information Sources
Oracle Fusion HRMS (United Arab Emirates): Payroll Implementation and Functional Considerations Whitepaper:
https://support.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1565449.1
Oracle Fusion Workforce Deployment Implementation Guide:
http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm
Oracle Fusion On-Premise Quick Start Implementation Guide:
https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1395863.1
Oracle Fusion Cloud Quick Start Implementation Guide:
https://support.us.oracle.com/oip/faces/secure/km/DocumentDisplay.jspx?id=1471160.1
Oracle Fusion Global Payroll User Guide:
http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf
Oracle Fusion Global Payroll Interface Guide:
http://www.oracle.com/technetwork/fusion-apps/payrollinterfaceguider4-1873384.pdf

2
Document Updates
This document is based on the most current application release as of the document’s publication date. Content is
updated as required only to reflect major changes to existing features or when significant new features are added to
the UAE localization. For this reason, it is possible that some minor UI differences may exist between the version
being implemented and the version described in this document.
Change Record
Date Version Change Reference
05-Feb-2016 1.1 Document updated for Release 11 Features. Included and
updated sections:
 National Identifiers
 Visa
 Disability
 Hiring a Worker
 Payroll Definitions
Comments and Suggestions
Your comments are important to us. We encourage feedback about Oracle Fusion Applications Help and guides.
Please send your suggestions to: oracle_fusion_applications_help_ww_grp@oracle.com.
You may also use the Send Feedback to Oracle link in the footer of Oracle Fusion Applications Help.

3
Organization Structures
Introduction
Before a customer can hire a UAE worker or run any country-specific process, the implementation
team must set up the organization structures required for the management of HR processes. You can
perform all setup tasks using the Functional Setup Manager (FSM).
The following sections describe how to create an implementation project and define enterprise
structures and related objects required for UAE implementations. These structures, which typically
contain country-specific information, must be defined before you can create application users.
Note: For the complete set of setup tasks required for a full implementation, please refer to
the documents listed under Other Information Sources.
Enterprise
The Enterprise classification represents the top structure in the organization that supports partitioning
requirements for Oracle Fusion applications. A person exists within the context of an enterprise. If a
person is associated with two enterprises, the person has two person records.
Since there is no concept of legislation at the enterprise level, no UAE-specific attributes are stored at
this level; these attributes must be stored at the level of other structures such as legal entity.
This document does not describe enterprise setup since this structure is defined at a higher level than
HR and is used across product lines.
Creating an Implementation Project
Setup tasks for organization structures should be defined in an implementation project. Follow these
steps to create an implementation project:
1. Sign in to the Oracle Fusion application using a role that has the profile of a super-user and
privileges to create all organizational structures:

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2. Select Setup and Maintenance from the Navigator:
3. On the Implementation Projects tab, click icon:
4. On the Create Implementation Project page, enter the required information and click Next:

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5. Select Workforce Deployment as the offering, since this parent project contains all the tasks
required to set up HCM organizational structures:
6. Click Save and Open Project.
Verifying Geographies
Geography information is used in Oracle Fusion applications for address entry and geography-based
business processes, such as territory management and shipping. Before defining enterprise structures,
the implementation team must verify predefined geographies and load any additionally required local
geography. There are no predefined geographies for UAE and you must define it.
Follow these steps to setup geographies for the UAE.
1. Select Manage Geographies in the implementation project checklist:

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2. On the Manage Geographies page, select AE and click Search to create geography setup and
content:
3. Click the green checkmark for each type of geography data you want to verify:
Address Cleansing Defined:

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Structure Defined: Create a geography type of Emirate
 Hierarchy Defined:
Validation Defined: Attach the UAE geography type to City attribute
4. Verify the information on each page and make necessary changes, then click Save and Close.
Note: Implementation teams can create new geographies by importing data through interface tables.
You can load data into the interface tables using the Oracle Fusion file-based data import process or
the tool of your choice.

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Defining Enterprise Structures
You can now begin the process of defining enterprise structures. All setup tasks are located in the
implementation project task list under Workforce Deployment > Define Common Applications
Configuration for Human Capital Management > Define Enterprise Structures for Human Capital
Management, as shown here:
Legal Jurisdictions
All legal entities must be registered against a jurisdiction that is governed by a legal authority. A legal
jurisdiction is a combination of the legislative category (such as labor law) and the physical territory
(such as a group of countries, a country, a state, or a county) to which legal rules are grounded.
Jurisdictions must be set up before creating registrations, because a jurisdiction is required in the
registration process. A jurisdiction must also have a start date and end date to show when the
jurisdiction is effective and when you can register against it. For UAE, there is a predefined jurisdiction
called United Arab Emirates Social Insurance.
To verify the legal jurisdiction:
1. Select Manage Legal Jurisdictions in the implementation project task list:

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2. On the Manage Legal Jurisdictions page, search for United Arab Emirates Social Insurance.
3. Ensure that the Identifying field has the value Yes.

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Note: An identifying jurisdiction is the one that is automatically associated with all legal entities
created for the territory. It represents the jurisdiction that a company has to register with when
first created, such as Chamber of Commerce or Companies House. Registration information for
the identifying jurisdiction is required when creating a Legal Employer.

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Legal Addresses
A legal address is the address of record for an entity. For example, the legal address of a legal authority
is used in communications with that authority. No Legal Addresses are predefined for UAE. You must
create legal addresses for all organizational units of the enterprise.
To define legal addresses:
1. Select Manage Legal Addresses in the implementation project task list:
2. On the Manage Legal Addresses page, click the Create icon.
3. On the Location Create page, enter the address information and click OK:

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Legal Authorities
Legal authorities are the government entities with which an enterprise interacts, for example to send
legal reports. No legal authorities are predefined for the UAE. You must create a legal authority for
each government entity, such as a local Social Insurance office, that has a relationship with the
enterprise. Later, you register each legal entity you create with a legal authority.
To define legal authorities:
1. Select Manage Legal Authorities in the implementation project task
list:
2. On the Manage Legal Authorities page, click the Create icon.
3. On the Create Legal Authority page:
3.1 Select Tax Authority Type based on the type of interaction. Typically, this is set to
Collecting and reporting.
3.2 Add one or more addresses.
3.3 Add one or more legislative categories. This establishes a link between the legal authority and
all jurisdictions associated with the selected legislative category.
4. Click Save and Close.
Legislative Data Groups
A legislative data group (LDG) defines the payroll and related data partition context for a user,
allowing customers to partition their payroll data. Although an LDG is not an organization, it is
included here for completeness.
You can partition payroll data at any of the following levels that are relevant to an enterprise:

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 Payroll statutory unit (PSU), where one LDG is required per PSU.
 Country, where one LDG is required per legislation with one or more PSUs.
 Between country and PSU, where a more complex setup is required. For example, partitioning at this
level is appropriate when multiple LDGs are required per legislation with one or more PSUs.
An LDG must be defined in an HR-only implementation if the customer plans to export employee-
level information, such as payment methods or salary, to a third-party payroll system.
If an LDG is associated with a PSU, then whenever a user creates payroll data, the LDG can be
derived from the payroll relationship for the transaction via the PSU association.
To define an LDG:
1. Select Manage Legislative Data Groups in the implementation project task list:
2. On the Manage Legislative Data Groups page, click the Create icon.
3. On the Create Legislative Data Group page, provide the required information and click Submit.
Legal Entities
A legal entity is an entity unequivocally identified and given rights and responsibilities under
Commercial Law, through registration with the territory’s appropriate authority. Legal entities have the
responsibility to account for themselves (balance sheet, income statement, specified reports) to
company regulators, taxation authorities, and owners according to rules specified in the relevant
legislation.
Legal Employers and Payroll Statutory Units (PSUs): Overview
Oracle Fusion HCM recognizes different types of legal entities:
 A legal employer is a legal entity that employs workers.

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 A payroll statutory unit (PSU) is a legal entity that is responsible for paying workers, including the
payment of payroll tax and social insurance. A PSU can pay and report on payroll tax and social
insurance on behalf of one or many legal entities, depending on the structure of your enterprise.
PSUs provide a way to group legal employers so that certain statutory calculations, such as court orders
and some taxes, can be performed at a higher level. A legal employer can belong to only one PSU, and
the PSU represents the highest level of aggregation for a person. No balances are aggregated across
PSUs.
When defining a legal entity, you must consider the context in which it is to be used:
 If it is to be used in an HCM context, designate it as a legal employer. In an HCM implementation, it
is required to define legal employers.
 If it is to be used in a Payroll context, designate it as a PSU.
 You can define a legal entity that is both a legal employer and a PSU.
 If multiple legal employers need to be grouped together for tax reporting purposes, you can associate
them all with a single PSU. If legal employers do not report together, they must not share a PSU.
No legal entities are predefined for the UAE. You must create all legal entities that apply to the
enterprise you are setting up.
Note: Legal Entities for UAE should be marked as both a Legal Employer and a PSU.
Legal Reporting Units and Tax Reporting Units: Overview
A legal reporting unit (LRU) is the lowest level component of a legal structure that requires
registrations. It is used to group workers for the purpose of tax and social insurance reporting or to
represent a part of your enterprise with a specific statutory or tax reporting obligation.
If LRUs are used in Oracle Fusion HCM Payroll for tax reporting purposes, then they are considered
tax reporting units (TRUs). In the Legal Entity Configuration, when you create an LRU that belongs to
a PSU, the application automatically creates a TRU in HCM and associates it with the parent PSU.
When you create an LRU that belongs to a legal employer (that is not also a PSU), you must select a
parent PSU. In this way, TRUs are indirectly associated with a legal employer by association with a
PSU.
TRUs are not relevant for the UAE localization as there is no statutory requirement to report at this
level. The application uses automatically created TRU for internal references.

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Organization Structure Models Supported by the UAE Localization
The following sections describe how you can set up the organization structure, comprising of
organization units, required to manage the HR processes for the UAE. Each enterprise can combine
these organizational units in a different way to set up the organizational model that best fits their
business needs. Before you begin creating organizational units, it is helpful to understand the
organization structure models supported by the UAE localization.
The UAE Localization supports one to one configuration between the Enterprise and PSU with one
legal employer.
Creating Legal Entities
To define legal entities:
1. Select Manage Legal Entities in the implementation project task list:
2. Click the Create icon to display the Create Legal Entity page:
3. Provide the required information, noting the following:
 Legal Entity should always be set as both Payroll Statutory Unit and Legal Employer for UAE.
 The Legal Entity Identifier is an internal code.
 An identifying jurisdiction must have been previously defined.
 You must have previously defined the legal address for the legal entity.

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 The type of registration information required is based on the Registration Code Assignment
information you defined when you created the selected jurisdiction. In this case, Social
Insurance Number and Legal Reporting Unit Registration Number are required for
registration with the United Arab Emirates Social Insurance jurisdiction.

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Legal Entity Registrations
Legal entities are connected to legal authorities through legal entity registrations. A registration is
automatically created for the identifying jurisdiction you select when you create a legal entity. If the
legal entity is registered with the United Arab Emirates Social Insurance jurisdiction, it can interact with
social insurance legal authorities. If the legal entity interacts with other legal authorities, you must create
additional registrations as appropriate.
To define a legal entity registration:
1. Set the scope for this task as follows:
1.1. Select Manage Legal Entity Registrations in the implementation project task list:
1.2. On the Scope Selection window, click Select and Add:
1.3. Search for and select the legal entity you just created, and then click Save and Close.
2. Select Manage Legal Entity Registrations in the task list. The Manage Registrations page
displays a list of registrations for this legal entity:

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Note: A registration was automatically created for the United Arab Emirates Social Insurance
jurisdiction when the legal entity was created, based on the registration details provided.
3. Click the Create icon to add a registration:
4. Enter the required information, noting the following:
 When you select a jurisdiction, the Territory field is populated automatically.
 The Issuing Legal Authority field displays a list of all legal authorities associated with
the selected jurisdiction.
 The Registered Address field displays a list of all predefined legal addresses.
Legal Entity HCM Information for Legal Employers and Payroll Statutory Units
Additional information about legal entities is required for Oracle HCM processes.
To provide HCM information:
1. Set the scope for this task by selecting the legal entity, as you did in Step 1 of the previous task.
2. Select Manage Legal Entity HCM Information in the implementation project task list:
3. If the entity is a legal employer, complete the fields on the Legal Employer and Emirati Legal
Employer Details tab:

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Note: The Employment Model selection is critical. The UAE localization supports all delivered
employment models. Refer to the section on employment models in chapter Define Enterprise
Structures for Human Capital Management of Oracle Fusion Applications Workforce
Development Implementation Guide
(http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20380/toc.htm).
Full contract functionality is available only if you select the 2-Tier Single Contract - Single
Assignment Model or a 3-tier employment model.
4. Click the Payroll Statutory Unit tab:
Note: The Fiscal Year Start for a UAE customer should be 1st January of the year the enterprise
is going live on Oracle Fusion HRMS.
5. Click the Emirati Payroll Statutory Unit Detail and enter WPS report details
If data is migrated from a legacy system, these UAE-specific fields must be populated. The
following table shows the attributes of this flexfields for record
PER_ORGANIZATION_INFORMATION_EFF
(DESCRIPTIVE_FLEX_CONTEXT_CODE = ORA_HRX_AE_PSU_DETAILS):
TABLE 1. ORGANIZATION INFORMATION DATA FLEXFIELDS UAE
APPLICATION_COLUMN_NAME END_USER_COLUMN_NAME LOOKUP DESCRIPTION
ORG_INFORMATION1 ORA_HRX_AE_MOL_EMPLOYER_ID ORA_HRX_AE_NUM_13 Ministry of Labour Employer ID
ORG_INFORMATION2 ORA_HRX_AE_WPS_AGENT_ID ORA_HRX_AE_NUM_9 WPS Agent ID
ORG_INFORMATION3 ORA_HRX_AE_EMPLOYER_BANK_CODE ORA_HRX_AE_NUM_9 WPS Employer Bank Code

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6. Complete the fields on this tab and click Submit.
It is at the PSU level that we associate the legislative data group.
For more information about legal entities, refer to the Define Enterprise Structures for Human Capital
Management chapter, Oracle Fusion Applications Workforce Deployment Implementation Guide,
Oracle Fusion Applications Workforce Development Implementation Guide, or Oracle Fusion
Applications Compensation Management Implementation Guide.
Legal Reporting Units (Release5)
To create an LRU (or a TRU, as it is referred to in HCM):
2. Select Define Legal Reporting Units for Human Capital Management in the task list:
o On the Scope Selection window, select Create New.
Note: An LRU with the same name as the previously created legal entity has been created by
default:
This LRU is designated as the main legal reporting unit for the legal entity:

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3. To create a second LRU for this legal entity, enter the required information on the Create Legal
Reporting Unit page:
Legal Reporting Unit HCM Information (Release5)
Additional information about legal reporting units, referred to as tax reporting units in this context, is
required for Oracle HCM processes.
1. Set the scope for this task by selecting the parent legal entity and then the legal reporting unit, as
described in previous tasks.
2. Select Manage Legal Reporting Unit HCM Information in the implementation project task
list:

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3. Enter details for Reporting Establishment
Legal Reporting Units (Release7 and above)
To create an LRU:
Select Define Legal Reporting Units for Human Capital Management in the task list:
On the Scope Selection window, for Legal Reporting Unit select the Select and Add value, then
click Apply and Go to Task.

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This LRU is designated as the main legal reporting unit for the legal entity:
2. To create a second LRU for this legal entity, enter the required information on the Create Legal
Reporting Unit page:
Legal Reporting Unit HCM Information (Release7 and above)

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Additional information about legal reporting units, referred to as tax reporting units or reporting
establishments in this context, is required for Oracle HCM processes.
1. Set the scope for this task by selecting the parent legal entity and then the legal reporting unit, as
described in previous tasks.
2. Select Manage Legal Reporting Unit HCM Information in the implementation project task
list:
3. Select the check boxes, if this LRU to mark as TRU and Reporting Establishment.
4. Enter details for Reporting Establishment
5. Enter details for TRU

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Business Units
Oracle Fusion HCM uses the business unit classification to group sets of data that are enabled with the
Set ID functionality. Thus, when you associate a business unit with a default set, this default set is
inherited by every entity connected to the business unit.
No UAE-specific data are required or captured at this level. However, it is required to assign a business
unit to a worker in the new hire process, so business units must be created for the enterprise.
To create a business unit:
1. Select Define Business Units for Human Capital Management in the implementation project
task list:
2. Click the Create icon.
3. On the Create Business Unit page, provide the required information:

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Note: You must have previously created the location and default set. (Default sets are created
using the Manage Reference Data Sets task. For more information about business units and default
sets, refer to the Oracle Fusion Workforce Deployment Implementation Guide:
http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20379/toc.htm).
Workforce Structures
Workforce structure setup should be performed once organization structure setup is complete.
Workforce structures are used to:
 Define additional partitioning of the workers within the organization, including divisions,
departments, and reporting establishments.
 Assign roles to workers within the organization, including grades, jobs, and positions.
 Set up actions and reasons that apply to the work relationship cycle of workers.
No workforce structures are predefined for the UAE. The implementation team is responsible for
defining all the workforce structures that apply to the enterprise for which the setup is being done.
Note that some workforce structures may not apply to every enterprise.
Locations
The first workforce structures to define are the locations where business is conducted or which are of
interest to the business. Locations can store information about the physical location of a workforce
structure and can be assigned to workers in order to define their physical work location.
To create or manage locations:
1. Select Manage Locations in the implementation project task list:

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3. On the Create Location page, provide the required information and click Submit:
Divisions
A division is a high-level organization that supports functionality for roll-up reporting. Division exists
above a legal entity, but below an enterprise. As there is no concept of legislation at the division level,
no UAE-specific attributes are stored here.
To create divisions:
1. Select Manage Divisions in the implementation project task list:
3. On the Create Division page, enter the required information:

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Note: In the sample screen above, the division is associated with the previously created location.
4. Click Next to provide additional division details and then review and submit.
Departments
A department is a division of a business enterprise dealing with a particular area or activity. You can
assign workers to departments.
No data is required or captured at this level for the UAE, but implementation teams can create a
department structure for an enterprise in the organizational structure setup phase of the project.
To create departments:
1. Select Manage Departments in the implementation project task list:
3. On the Create Department page, provide the required information:
Note: In the sample screen above, a location has been selected. Every time this department is
connected to another entity, such as a worker, this location is also connected to that entity by
default.
4. Click Next to provide additional department details and then review and submit.

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Reporting Establishments
A reporting establishment represents an organizational unit used for statutory reporting, other than tax
or social insurance reporting. You can create a new reporting establishment from scratch or you can
select an existing TRU and define it as a reporting establishment. (From Release7 you will no longer be
able to create a reporting establishment from a previously created TRU)
To create reporting establishments:
1. Select Manage Reporting Establishments in the implementation project task list:
3. On the Create Reporting Establishment page, select Create New to create a new reporting
establishment or choose Select an existing organization to define as a Reporting
Establishment if the reporting establishment is an existing TRU. (From Release7 you will no
longer be able to create a reporting establishment from a previously created TRU)
If you choose to select an existing organization, the Search: Organization section is displayed:

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Select Tax Reporting Unit in the Classification field and click Search. Then click Select
Organization for the TRU you want to work with.
4. In the Reporting Establishment Description section, provide the required information:
5. Click Next to provide additional details and then review and submit.
Roles in Organization
A set of workforce structures, including grades, jobs, and positions, must be defined during
implementation. These structures are used to assign a role to each worker in the organization.
Grades
A grade defines the relative rank, level, or status of a worker. It is one of the key building blocks used
for managing compensation.
To create grades:
1. Select Manage Grades in the implementation project task list:

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3. On the Create Grade page, provide the required information:
Note: In the sample screen above, this grade is associated with the business unit created earlier.
4. Click Next to define the order of progression between grades:
5. Click Next to define grade rates:

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Grade rates can be used to define pay values for grades in a legislative data group (country). You
can add a rate that was previously defined or create a new rate:
Jobs
A job defines a set of roles or duties that are linked to a worker. Each enterprise should create the job
codes that are suited for its organization.
To create jobs:
1. Select Manage Job in the implementation project task list:

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3. On the Create Job page, provide the required information:
Note: In the sample screen above, the selected Job Set is the same as the default set selected for
the business unit. Thus, this job cannot be assigned to workers who belong to a business unit that
is connected to a different job set.
4. Click Next to enter job details:
Note: No UAE-specific data is required in the Job Details page or other setup pages for jobs.

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Positions
A position is a specific instance of a job in a department or business unit. The use of jobs or jobs and
positions varies by industry and customer requirements.
To create positions:
1. Select Manage Positions in the implementation project task list:
3. On the Create Position page, provide the required information:
Note: In the sample screen above, the position is associated with the previously created business
unit. The business unit you select here determines which jobs, departments, and location values
can be selected on subsequent screens.

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4. Click Next to provide additional position details:
Note: On this page, you can specify optional attributes, such as Full Time or Part Time, Regular
or Temporary, Entry Grade and Entry Step. You can also add previously defined grades that are
valid for this position. No UAE-specific data is required or captured in the Position Details page
or other setup pages for positions.
Actions Reasons
Action reasons are useful primarily for analysis and reporting purposes. They provide information
about when or why a specific action, such as termination of a worker, can be taken. They can also be
used to trigger a process based on the value of the action reason. For example, a specific termination
reason might trigger the payment of an indemnity. Action reasons are often used in report fields or
selection criteria.
Several action reasons are predefined in the system. Although action reasons are not workforce
structures, the implementation team may want to create additional ones to suit the business needs of
the enterprise.

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To view and manage action reasons:
1. Select Manage Actions in the implementation project task list:

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2. On the Manage Actions page, you can search for existing actions and view associated action
reasons. You can also create new actions and action reasons:
The screen below shows the action reasons for the termination action:
3. To create a new action reason for an action, click the Create icon in the Actions Reasons section
and complete the required fields:
The new reason code is available for selection when a user performs the specified action.

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Managing Workforce Structures
As described in the previous sections, implementers use the setup tasks in FSM to create organization
and workforce structures. Maintenance of such structures can also be done through FSM. For some of
these structures, maintenance tasks are also available in the Workforce Structures work area:
When you select Workforce Structures in the Navigator, the following page is displayed:
Use this work area to manage:
 Positions
 Jobs
 Grades
 Departments
 Locations

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For example, to add an entry grade to the position you created earlier, search for the position on the
Manage Position page and then edit the record to add additional information:

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Personal Data Setup
This section describes the setup and validations predefined for the UAE for the following person
information:
 Addresses
 Names
 Legislative information
 National IDs
Addresses
The format in which addresses must be entered for workers located in the UAE is predefined and
should not be modified during implementation. The predefined format enables the following fields
 Country (Required)
 Address Line 1 (Conditional Mandatory)
 PO Box (Conditional Mandatory)
 Address Line 2
 Emirate
The following figure shows how a UAE address is captured in the application:
Address Validation
1. You must enter either the Address Line 1 or the Post Office Box.
2. PO Box must not contain more than 6 characters.
Address Mapping
If you are uploading the data through HCM Data Loader (HDL) or File Base Loader (FBL), then map
the address fields as follows:

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UI Name Table Column name (PER_ADDRESSES_F)
Address Line 1 ADDRESS_LINE1
PO Box ADDRESS_LINE3
Address Line 2 ADDRESS_LINE2
Emirate TOWN_OR_CITY
Country COUNTRY
Names
The format in which names must be entered for workers located in the UAE is predefined.
Implementer has option to add additional name attributes to the seeded name attributes but the
existing structure should not be modified.
The UAE name format follows the standard format used in Oracle Fusion:
 Title
 First Name (mandatory)
 Family Name (mandatory)
 Father’s Name
 Grandfather’s Name
 Mother’s Name
The following figure shows how a UAE name is captured in the application:
Legislative Information
UAE-specific legislative information can be captured for each person. None of these fields is required,
and it is up to the enterprise to decide which data needs to be entered.

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The UAE supports the following legislative information:
 Marital Status: Uses UAE-specific values in the lookup
 Religion
 Highest Education Level
The following figure shows how UAE legislative information is captured in the application:
The UAE-specific PER_PERSON_LEGISLATIVE_DATA_LEG_DDF includes the following
flexfields:
 Place of Birth-Alternate Language (PER_INFORMATION1)
 Organization Granting Highest Education Level (PER_INFORMATION3)
 Subject (PER_INFORMATION2)
Note: Refer to the Oracle_Fusion_HRMS_UAE_HR_Data.xls document on My Oracle Support
(MOS) for a complete list of predefined lookups and flexfields for the UAE.
National Identifiers
Three national identifiers are provided for UAE:
1. Social Insurance Number
2. Civil Registration Number
3. Emirates ID
The following validations have been delivered for the UAE national identifiers:
 If entered, Social Insurance number must be 12 digits or fewer.
 If entered, Civil Registration Number must be 15 digits or fewer. The user must enter the social
insurance number if the civil registration number is entered.
 If the Civil Registration number is 15 digits then the 4th , 5th , 6th and 7th digits of the Civil ID
must be year of birth.

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 If entered, Emirates ID must be 15 digits, and the 4th, 5th, 6th and 7th digits of the Emirates ID
must be year of birth.
The following figure shows how a national identifier is captured in the application:
Contacts
The UAE-specific PER_PERSON_CONTACT_RELATIONSHIP_DDF includes the following
flexfields:
 Name of Spouse's Employer (CONT_INFORMATION1)
 Spouse's Latest Qualification (CONT_INFORMATION2)
 Subject (CONT_INFORMATION3)
 Statutory Dependent (CONT_INFORMATION4)
Validation- Name of spouse’s employer, spouse’s latest qualification and subject fields are applicable
only for contact type Spouse.
(MOS) for a complete list of predefined lookups and flexfields for the UAE.
Visa
The UAE-specific PER_PERSON_VISA_LEG_DDF includes the following flexfields:
 Previous Occupation (VIS_INFORMATION1)
 Sponsor Type (VIS_INFORMATION2)

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 Sponsor Name (VIS_INFORMATION3)
 Sponsor Relationship (VIS_INFORMATION4)
 Sponsor Number (VIS_INFORMATION5)
 Sponsor Nationality (VIS_INFORMATION6)
 Emirate (VIS_INFORMATION7)
Validation- When the Visa type is Iqama, the user must enter a Visa Number. The Visa Number must
not exceed 14 digits, and should be in the following format: NNN/NNNN/NNNNNNN.
(MOS) for a complete list of predefined lookup and flexfields for the UAE.
Passport
The UAE-specific PER_PERSON_PASSPORT_LEG_DDF includes the following flexfields:
 Place of Issue-Alternate Language (PAS_INFORMATION1)
 Number of Accompanying Persons (PAS_INFORMATION_NUMBER1)

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Disability
The UAE-specific PER_PERSON_DISABILITY_LEG_DDF includes the following flexfields:
 Applicable to Social Security (DIS_INFORMATION1)
 Reporting Description (DIS_INFORMATION2)
Contracts
The UAE-specific PER_CONTRACT_LEG_DDF includes the following flexfields. The user must
enter contract for employee if gratuity needs to be processed in payroll.
 Employment Status (CTR_INFORMATION1)
Validation: - When the contract type is Fixed, user must enter value in the duration field.

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Hiring a Worker
Once the organizational and workforce structures have been defined by the implementation team, the
user is ready to manage workers’ data in the application. To perform tasks related to person and
employee management, you would typically sign in to the application using a role connected to a user,
such a Human Resource Specialist, rather than to a member of the implementation team:
The new hire process is the first task in the workforce lifecycle.
To hire an employee:
1. Select New Person under Workforce Management in the Navigator:

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2. In the task list on the left, select Hire an Employee:
Note the other supported person types for the UAE:
 Contingent Worker
 Nonworker
 Pending Worker
3. On the Identification page, provide the required information:
Note the following:
 The Hire Reason field displays a list of valid action reasons defined for the hire action.
 The Legal Employer field displays a list of all legal employers for the UAE.
 The name format is determined by the predefined name formats for the UAE.

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 National identifier section displays three national identifiers in National ID Type list of values
for UAE.
 Social Insurance Number
 Civil Registration Number
 Emirates ID
4. On the Person Information page, provide the required information:

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Note the following:

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An address is required and must conform to the predefined UAE Address format.
The following additional information is optional for the UAE:
 Phone and E-Mail.
 Marital Status, Ethnicity, and Highest Education Level fields in UAE-specific Legislative
Information section
 Citizenship and Visa Information
 Emergency Contacts
Note: Citizenship should be entered for the Social Insurance card to be automatically
created.
5. On the Employment Information page, provide the required information:
Note the following:
Because the employer in this example uses the 3-tier employment model (as selected in legal employer
setup), employment information must be entered at both the terms and assignment levels. To enter
information at the assignment level, click the Assignment tab.

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The Business Unit, Job, Grade, Department and Location must have been previously defined. The
Business Unit you select determines which jobs, grades, and departments you can select.
Maintaining Person and Employment Information
Once the new hire process is complete, the person is recorded in the system. Payroll users can modify
person and employment information as required, and add data not entered in the new hire process.
Some information, such as birth and disability information cannot be entered in the new hire process
and must be entered during maintenance.
Person Management
To maintain person information:
1. Select Person Management under Workforce Management in the Navigator:
2. Search for and select the person record:

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3. Navigate through the various tabs to view and manage the complete set of person information.
Select either Edit>Correct or Edit>Update to modify the information in any section.
Person Information:
Contacts:
Click the Create icon:
Note: Statutory reports show only the contacts that have the Statutory Dependent flag selected.

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Documents:
Disabilities:
Click the Create icon:

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Note: Statutory reports consider only the employees with Disability that have the Applicable to
Social Security field equal to Yes.
Extra Information:
This tab is used to capture country-specific person information. There are no UAE-specific fields
on the Extra Information tab.
Employment Management
The Person Management work area also provides tasks for maintaining employment information.
From here, you can modify an existing instance of employment or add a new instance if, for example,
an employee has a job change, or business unit change.

55

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Terminating a Worker
When a person’s employment period ends, the work relationship must be terminated.
To terminate a work relationship:
1. Select Manage Work Relationship in the Person Management work area.
2. On the Manage Work Relationship page, select Terminate from the Actions menu:

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3. On the Terminate Work Relationship page, enter the details of the termination, including the
termination reason:
Note: The Termination Reason field displays a list of Action Reasons associated with the
termination action, as described earlier in this guide.
Availability of Functionality Based on Product License
The availability of certain features such as calculation cards and element templates depends on the type
of license you have.
HR-Only: As an HR-only customer, you get access to the basic version of the element templates.
These templates create the element and you need to create the input values, formulas, balances to meet
your business requirements.
Payroll Interface: As a payroll interface customer, you get access to a number of payroll features not
available to an HR-only customer. This includes access to the full earnings element that creates the
element, input values, formulas, balances. These earnings elements can be processed through the
calculation to Gross process which is also available to Payroll Interface customers. Any other type of
element, such as deductions, is created using the basic version of the element templates and you need
to create the input values, formulas, balances.
Additional Information for Payroll Interface
The setup tasks described up to this point in this document are required to manage the HR processes
for an enterprise. If the enterprise also runs the Oracle Fusion HCM (UAE) Payroll, additional
information must be provided to support payroll processes. Setup tasks for Oracle Fusion Payroll are
outside the scope of this guide.
If the enterprise does not implement Oracle Fusion Payroll but extracts data from the Oracle Fusion
application using the Payroll Interface to feed an external payroll system, additional payroll-related data
must be provided to support the Payroll Interface. Detailed documentation for the Payroll Interface
can be found in the Global Payroll Interface Guide (http://www.oracle.com/technetwork/fusion-

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apps/payrollinterfaceguider4-1873384.pdf). The sections that follow describe how to define payroll-
related information to support the Payroll Interface for UAE implementations:
 Calculation cards
 Consolidation Groups
 Payroll Definitions
 Organizational Payment Methods
 Personal Payment Method
 Elements and Gross Compensation

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Calculation Cards
Employer Calculation cards
A calculation card captures values required for calculating and processing payroll deductions. To
support the Payroll Interface, you must create a Social Insurance and Gratuity cards for each PSU.
Creating the Organization Calculation card
1. Sign in using a role that has privileges to manage payroll information:
2. Select Setup and Maintenance from the Navigator:

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3. Select the Manage Implementation Projects task:
4. Search for and select the Implementation Project name.
5. Expand Define Enterprise Structures for Human Capital Management and Manage Legal
Entity Calculation Cards, then clicking on the corresponding Go to Task icon.
Note: You can change the Legal Entity by clicking the Selected Scope link.

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Creating the Employer Social Insurance Card
1. Select Employer Social Insurance Details in the Name field to define data required for Social
Insurance calculation:

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To add the required information for processing Social Insurance deductions:
Note: Employer Social Insurance Details calculation component was created automatically. “Payroll
Statutory Unit Social Insurance Details” calculation component details record was also created.
2. Expand the Payroll Statutory Unit Social Insurance Details calculation component details.

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3. Select the required Employer Sector field, and click Save.
 Employer Sector: The employer sector can be either government sector or private sector.
The deduction rules are applied based on the type of sector you choose.
 Employer Number: The two digit number is issued by the Social Insurance Office to
Government Agencies and is used in the Monthly Contribution – Government Sector
statutory report.
 Contributory Salary Reference Formula: You can define the formula that calculates the
contributory salary at the legal entity level. The contributory salary value is derived from this
formula and is used as the reference value for social insurance calculation. This formula must
have the value returned using variable CONTRIBUTORY_SALARY_REFERENCE. This
is only used in the private sector.
Creating the Gratuity Card
1. Select Employer Gratuity Details in the Name field to define data required for Gratuity
calculation:

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To add the required information for processing Gratuity:
Note: Employer Gratuity Details calculation component was created automatically. Payroll Statutory
Unit Gratuity Details calculation component details record was also created.
2. Expand the Payroll Statutory Unit Gratuity Details calculation component details.
3. Select the required Contributory Base field, Salary Formula and click Save.

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 Calculation Basis: The amount of gratuity is based on the salary per day of the employee
which will differ based on whether you choose fixed or actual calculation basis. For gratuity
calculation, the monthly salary is converted to annual salary. This amount is divided by the
number of days in a year. The actual calculation basis uses 365 days in a year whereas the fixed
calculation basis uses 360 days.
 Salary Formula: You must define your own salary formula for gratuity calculation. Once you
have defined the salary formula, you can select it here. The formula must return the values
using variable MONTHLY_SALARY. Additional details on the calculation are provided in
the section on gratuity calculation.
 Reference Formula: You can define your own reference formula to calculate the paid
gratuity amount and select it here. The formula must return the values using variable
PAID_GRATUITY. This overrides the amount calculated by the default reference formula
in the End of Service Details card in the gratuity details calculation component.
4. Save the calculation card.

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Personal Calculation Cards
A calculation card captures values required for calculating and processing payroll deductions. To
support the Payroll Interface, you must create a Social Insurance calculation card for each person for
whom payroll deductions is processed.
For payroll interface users, the calculation cards can be used to capture a set of data that they want to
record in the HR system and then pass over to the third party payroll. Data to be recorded in the
calculation cards is determined in each implementation, depending on customer needs. For payroll
license customers instead, data to be recorded is driven by Fusion Payroll requirements since that data
is the only source for information for payroll calculation.
Creating the Employee Social Insurance Details Card
The social insurance card is automatically created when the new hire process for an employee is
completed, provided the employee citizenship information is specified. If the citizenship information is
not specified, then the social insurance card must be created manually.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle
Fusion Payroll or Payroll Interface.
2. Select Payroll Calculation from the Navigator:

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3. Select the Manage Calculation Cards task:
4. Search for and select the employee for whom you want to create the card.
5. Click the Create icon:

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6. Select Employee Social Insurance Details in the Name field to define data required for Social
Insurance calculation:
Note: This Employee Social Insurance Detail card’s component creates element entry for the Auto
Indirect element. Hence user has to create the element eligibility for this element before create the
card.

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Adding Calculation components details for Social Insurance
To add the required information for processing social insurance deductions:
Note: Employee Social Insurance Details calculation component was created automatically. Social
Insurance Details calculation component details record was also created.
1. Expand the Social Insurance Details calculation component details.
2. Select the required Citizenship field, and click Save. Social Insurance calculation is processed only
for UAE nationals.

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Additional Calculation component Details for Social Insurance
You can add additional calculation component details for social insurance contributory salary adjust
amount or override amount. This is applicable only for private sector employees.
Create the Contributory Adjustment
1. Click the Create icon on the Calculation Component detail:
2. Select Social Insurance Contributory Salary Adjustment in the Calculation component Details
field to add the Adjustment details.
3. Enter the adjustment amount.

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Note: you can enter negative values to reduce the contributory amount.
4. Save the detail.
Note: The Contributory Salary Adjustment amount should be available only for the month in which
user needs to adjust the salary. The application end dates the component details with that month’s end
date.
Create the Contributory Override

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1. Click the Create icon on the Calculation Component detail:

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2. Select Social Insurance Contributory Salary Override in the Calculation component Details
field to add the Adjustment details:
3. Enter the Override amount:
4. Save the detail:
Note: The Contributory Salary Override amount should be available only for the month in which user
needs to override the salary. The application end dates the component details with that month’s end
date.

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Creating Associations
You must associate the calculation card with a tax reporting unit (TRU). You must also associate the
calculation component with employments terms (or with an assignment in a three-tier employment
model).
To define associations:
1. In the Calculation card Overview pane, click Associations.
2. Click the Create icon in the Associations section.
3. On the Create Association window, select the TRU responsible for reporting deductions for this
person:
4. Click OK, and then click Save to save the association.
Note : Don’t select Calculation Component.
5. In the Association Details section, click the Create icon.
6. On the Create Association Details window, select the employment terms number and calculation
component, then click OK.

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Note: If the employer uses a 2-tier model, you must select an assignment rather than employment
terms number.

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Creating the Personal Calculation Card (Gratuity)
A Gratuity calculation card captures values required for calculating and processing the Gratuity
payment.
Gratuity card is created automatically upon employee termination, provided the Registered for Social
Insurance checkbox is unselected for the employee. When the gratuity card is created, the gratuity
component, component details, and association are automatically created.
For the automatic card creation to be enabled, your Payroll Product Usage must be set to Oracle
Fusion Payroll or Payroll Interface.
2. Select Payroll Calculation from the Navigator:

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3. Select the Manage Calculation Cards task:
 Search for and select the employee for whom you want to create the card.
5. Click the Create icon:
Select End of Service Details in the Name field to define data required for Gratuity
calculation:

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Note: This End of Service Details calculation component creates element entry for the Gratuity
Auto Indirect element. Hence, user has to create the element eligibility for this element before create
the card.

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Adding Calculation components details for Gratuity
1. To add the required information for processing Gratuity Calculation:
Note: Gratuity Details, calculation component was created automatically. Gratuity Details calculation
component details record was also created.
2. Expand the Gratuity Details calculation component details, and provide the Override value, if
required.
Note: You can enter an override amount to be paid to the employee as gratuity. If override amount is
specified, this amount overrides the reference formula for gratuity calculation defined at the PSU level, and
also the calculation formula defined at legislative level.
3. If you want to create End of Service details, click the Create icon in the calculation component
details section, select End of Service Details.

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Note:
End of Service Remuneration or Pension: used to specify whether the employee wants to claim the
end of service remuneration or pension from the social insurance office.
Bank Name, Branch, Account Number: bank information where the payment must be made.
Creating Associations
You must associate the Gratuity card with a tax reporting unit (TRU). You must also associate each
calculation component with employments terms (or with an assignment in a three-tier employment
model).
To define associations:
1. In the Card Overview pane, click Associations.
2. Click the Create icon in the Associations section.

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3. On the Create Association window, select the TRU responsible for reporting deductions for this
person:
Note: Don’t select the Calculation Component.
4. Click OK, and then click Save to save the association.
5. In the Association Details section, click the Create icon.
8. On the Create Association Details window, select the employment terms number and calculation
component, then click OK.
Note: If the employer uses a 2-tier model, you must select an assignment rather than an
employment terms number.

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Banking Setup
An HR customer may want to add banking information even if payroll is not processed by Oracle
Fusion Payroll for UAE. For example, banking setup may be required for reporting purposes or for
date that is used by other products, such as an expenses module.
To accommodate this scenario, the setup for banks and branches must be done before entering bank
accounts and payment methods for the payee. Additionally, some payroll setup, described later in this
document, may also be required.
No banks or branches are predefined for the UAE. Banks and branches must be defined during
implementation. This can be done manually, by entering the banks and branches in the application, or
it can be done in a mass upload process.
Banks
To define banks:
1. Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
2. Select Manage Banks in the implementation project task list:
4. On the Create Bank page, provide the required information:

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Bank Branches
To define branches for the banks you created:
1. Select Manage Bank Branches in the implementation project task list:
3. On the Create Bank Branch page, provide the required information:

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Bank Accounts
Once banks and branches are set up, you can define the bank accounts that are required for the
organization. Normally, implementation teams set up bank accounts that are used at an organizational
level, such as the source bank accounts for payments, rather than bank accounts at the individual payee
level.
No bank accounts are predefined for the UAE.
To define bank accounts:
1. Select Manage Bank Accounts in the implementation project task list:
3. On the Create Bank Account page, provide the required information:
Note: If you want to use this bank account for processing payments related to payroll, select the
Payroll option in the Account Use field.

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Organization Payment Methods
After setting up banks, you can define the payment methods for the organization.
No organization payment methods are predefined for the UAE. Implementation teams must to create
the ones applicable to the enterprise.
To define organization payment methods:
1. Select Manage Organization Payment Methods in the implementation project task list:
3. Select the legislative data group associated with this payment method:
4. On the Create Organization Payment Method page, enter the required information:

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Note: UAE supports the following Payment Types: Electronic Funds Transfer (EFT), Cheque,
and Cash Payment.
Net Pay Balance
During the payment process, the net pay balance is used to store the amount to be transferred as
remuneration for the payee. A net pay balance, Net Pay, is predefined for the UAE, and no additional
setup is required during the implementation phase.

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To view the Net Pay balance:
1. Select Manage Balance Definitions in the Payroll Calculations or Setup and Maintenance work
areas.
2. Enter Net Pay in the Name field and select a UAE LDG, then click Search:

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3. Click the Net Pay balance in the Search Results to view the balance information:
Note: The Use for Remuneration field is set to Yes.
4. Click Balance Dimensions in the left panel to display the dimensions associated with this
balance:
Note: The Core Relationship Payments has been associated with this balance.

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Consolidation Groups and Payroll Definitions
Consolidation groups and payroll definitions are normally concepts related to payroll, but if an HR-
only customer has the requirement to assign banking details for the employee, then these objects must
be set up first.
Consolidation Groups
Consolidation groups are used within the organization to enable grouping of different payrolls for
reporting purposes. No consolidation groups are predefined for the UAE. If you are creating payroll
definitions for the implementation, you must define at least one consolidation group first since it is
required information for payroll definitions.
To set up consolidation groups:
1. Sign in to the application with a role that has implementation privileges, such as
APPL_IMP_CONSULTANT.
2. Select Manage Consolidation Groups in the implementation project task list:
3. On the Manage Consolidation Groups page, click the Add Row icon:
4. Enter a name and select a legislative data group. Description is optional, but useful to provide.
5. Click Save.
Payroll Definitions
Payroll definitions contain calendar and offset information that determine when payments are
calculated and paid. Using payroll definitions, you can specify payment frequency, processing schedule,
and other parameters for a particular payroll. Payroll period types, such as weekly or monthly,
determine the interval at which you pay employees.

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Each payroll definition can be associated with only one payroll period type, and you must set up at
least one payroll definition for each payroll period type that you use to pay employees. When you
create a payroll definition, the complete payroll schedule is automatically generated, based on the
selected payroll period type, any offsets or calendar adjustments, and the number of years that you
specify. Once you have saved a payroll definition, you can assign employees to it on the Manage Payroll
Relationships page.
Before you can create a payroll definition, you must have already defined a legislative data group and
consolidation group.
No payroll definitions are predefined for the UAE.
To set up payroll definitions:
1. Select Manage Payroll Definitions in the implementation project task list:
3. Select the LDG for this payroll definition, and click Continue:
4. On the Create Payroll page, enter the required information:

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Note the following:
 UAE supports the following period types: Monthly Calendar and Biweekly.
 Only the payroll interface license customer can use Biweekly period type.
 If a user with payroll license selects Biweekly as Period Type, the user will not be allowed to
create the payroll definition.
 You must select an existing consolidation group.
 Click the Add Row icon in the Valid Payment Methods section to add an organization
payment method to use as the default, plus any additional payment methods that are valid for
this payroll. You can select any organization payment method defined for the LDG that is
linked to this payroll definition.
5. Click Next, and provide the required information on the Payroll Offsets page:

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In the sample screen above, only the basic information required to create a payroll definition (for
the purpose of assigning a payment method to an employee) is provided.

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Person Payment Information
To add payment information for an employee, you must assign a payroll definition to the employee
even if you are not processing payroll for the employee using Oracle Fusion Payroll.
For more information about personal payment methods, refer to the Oracle Fusion Global Payroll
User Guide (http://www.oracle.com/technetwork/fusion-apps/payrolluserguider4-1873385.pdf).
Assigning a Payroll to the Employee
If a payroll definition was not assigned to the employee during the hire process, follow these steps to
do so:
1. Sign in to the application with a role that has payroll privileges, such as PAY_MGR_ALL.
2. Select the Manage Payroll Relationships task in the Person Management work area:

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3. Search for and select the employee.
4. On the Manage Person Details page, add the payroll in the Payroll Details section:
Assigning Payment Methods to the Employee
Once banks and branches have been loaded in the system and a payroll definition has been assigned to
the employee, you can add payment methods to the employee record.
To assign personal payment methods:
1. Select the Manage Personal Payment Methods task in the Payroll Distribution work area:
2. Search for and select the employee.
3. On the Manage Person Details page, click the Create icon:

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4. On the Personal Payment Method page, select the Organization Payment Method for this
employee:
Note:
If the payment type is EFT, you must add a bank account and provide banking details:
An employee can have multiple payment methods.
Use the Payment Amount Type and Percentage fields to manage distribution across different
payment methods.

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Elements and Compensation
Even if elements are normally used in a payroll project only, the implementation team of an HR project
may need to create a regular earnings element and connect it to compensation information, such as
basic salary or other gross compensation elements.
Elements may also be used in the process of calculating gross compensation for the Payroll Interface.
Elements and Element Templates
Elements are created through predefined element templates, which provide the user with an intuitive
user interface and manage the creation of different types of elements and their associated objects. The
template engine gets a set of rules from the template and processes the predefined template structure
to create appropriate data.
A set of element templates is predefined for the UAE. The following UAE templates are used to create
base pay and compensation earnings:
 Standard Earnings
Following secondary classifications are available under this classification:
 Supplemental Earnings
Following secondary classification is available under this classification:

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The following steps show how to create a regular earnings element for basic salary:
1. Select Manage Elements in the Setup and Maintenance or Payroll Calculations work area:
2. On the Manage Elements page, click the Create icon.
3. On the Create Element window, select a legislative data group and a primary classification, then
click Continue:
4. Complete the fields at the top of the Create Element page, and then answer the questions:

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Note: The questions and default answers shown here are based on the predefined UAE element
template for standard earnings. Your answers drive the definition of the earnings element to be
created.
5. Click Next, and complete the rest of the questionnaire:
6. Verify the information and click Submit to create the new element:

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7. On the Element Summary page, provide additional information as needed, such as input values,
processing rules, and eligibility:
Use the Element Overview panel to navigate through the setup pages.
Note: Element eligibility must be defined so the element can be linked to an element entry (and
hence to gross compensation).

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8. In the Element Overview panel, select Actions>Create Element Eligibility.
9. On the Element Eligibility page, enter a name in the Element Eligibility Name field and click
Submit.
Note: By entering only a name and no eligibility criteria, the element is eligible for all employees.
10. Click an Input Value in the left panel to provide additional information as needed:
11. Repeat this entire process to create a set of elements to support your business needs.
12. You could as well create Absences elements by selecting Absences primary classification.

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Element Entries
For earnings to be associated with a person, you must create an element entry for that person and that
element. The following sections show how an element entry is automatically generated by creating a
Salary Basis or a Compensation entry for the payee. Other processes (described in detail in the Oracle
Fusion Global Payroll Guide) can also be used to create element entries for a person.
Salary Basis and Compensation
Once you have created the elements that are meant to hold the payee basic salary and compensation
information, you can perform the setup required to attribute the gross compensation to the payee.
Salary Basis
To set up the salary basis:
1. Sign in to the application with a role that has compensation administrator privileges, such as
CMP_ADMIN_ALL.
2. Navigate to Compensation work area:
3. Select Manage Salary Basis, and then click the Create icon:

104
4. On the Create Salary Basis page, select the payment element to use for the salary basis and provide
the required information:
Individual Compensation
To create a compensation plan, such as for a car allowance:
1. In the Compensation work area, select Manage Plans and click the Create icon:
2. Select the payroll element for the compensation plan, such as a car allowance:
3. Select the Dates tab and set the payment start and end dates:

105
4. Select the Eligibility tab to define eligibility for the plan:
5. Select the Plan Access tab and indicate whether to restrict access to this plan:
6. Select the Instruction Text tab and add any user instructions you want to associate with the plan.
Assigning Salary Basis and Compensation to a Payee
Once you have completed setup for Salary Basis and Compensation, you can assign them to the payee.

106
Adding a Salary
1. Select Manage Salary in the Person Management work area:
2. Click the Create icon, then complete the fields on the Add Salary window:
3. On the Manage Salary page, select the previously created Salary Basis and enter a Salary
Amount, such as 5000 AED per month:

107
When you save this record, an element entry with the specified start and end dates is automatically
generated. You can view the entry on the Manage Elements page
Note that an annualized value of the compensation is given to the Salary Basis. The salary element
entry is passed to the Gross Compensation calculation process, which prepares compensation data for
the Payroll Interface.
Adding Compensation
1. Select Manage Compensation in the Person Management work area:
2. On the Manage Compensation page, click Award Compensation:
3. On the Award Compensation window, select the previously created compensation plan and enter
the compensation amount, such as 500 AED for a car allowance:

108
When you save this record, an element entry with the specified start and end dates is automatically
generated. You can view the entry on the Manage Elements page.
The compensation element entry is passed to the Gross Compensation calculation process, which
prepares compensation data for the Payroll Interface.
Payroll processing after termination
Users can check the Pay Status to determine if the assignment will be processed in the payroll after the
termination based on the assignment status.
Steps to check Pay Status
1. Go to Manage Assignment Status and click link the Go To Task link.
2. Check Pay Status based on Assignment status after termination:

109

110
Conclusion
This document has provided a set of information useful for anyone implementing or using Oracle
Fusion HCM (UAE) HR.
In order to verify that all the tasks needed in an implementation have been performed, we recommend
referring to the documents mentioned in the Other Information Sources section.
Glossary
business unit
A unit of an enterprise that performs one or many business functions that can be rolled up in a
management hierarchy. A business unit can process transactions on behalf of many legal entities.
consolidation group
A grouping of payroll runs within the same time period for which you can schedule reporting, costing,
and post-run processing.
calculation card
A mechanism for capturing values required for calculating payroll deductions at the level of a payroll
statutory unit, tax reporting unit, or payroll relationship. At the payroll relationship level, this is called a
personal calculation card.
calculation component
An individual deduction captured on a calculation card. Typically relates to a deduction element for
which the calculation component creates an entry.
department
A division of a business enterprise dealing with a particular area of activity.
division
A business-oriented subdivision within an enterprise. Each division is organized to deliver products
and services or address different markets.
enterprise
An organization with one or more legal entities under common control.
flexfield
Grouping of extensible data fields called segments, where each segment is an attribute added to an
entity for capturing additional information.

111
geography structure
A hierarchical grouping of geography types for a country. For example, the geography structure for
United States is: State, County, City, and then Postal Code.
identifying jurisdiction
The first jurisdiction a legal entity or establishment must register with to be allowed to do business in a
country.
legal authority
A government or legal body that is charged with powers such as make laws, levy and collect fees and
taxes, and remit financial appropriations for a given jurisdiction.
legal employer
A legal entity that employs people.
legal entity
An entity is identified and given rights and responsibilities under commercial law, through the
registration with the country's appropriate authority.
legal jurisdiction
A physical territory, such as a group of countries, single country, state, county, parish, or city, which
comes under the purview of a legal authority.
legal reporting unit
The lowest level component of a legal structure that requires registrations. Used to group workers for
the purpose of tax and social insurance reporting or represent a part of your enterprise with a specific
statutory or tax reporting obligation.
legislative data group
A means of partitioning payroll and related data. At least one legislative data group is required for each
country where an enterprise operates. Each legislative data group is associated with one or more payroll
statutory units.
location
The physical address of a workforce structure, such as a department or a job.
LDG
Abbreviation for legislative data group.
payroll statutory unit
A legal entity registered to report payroll tax and social insurance. A legal employer can also be a
payroll statutory unit, but a payroll statutory unit can represent multiple legal employers.

112
Process configuration group
A group of action parameters that set options, mainly related to performance and logging, for payroll
processes. A few parameters control other features, such as element templates, dates, and report output
location.
registration
The record of a party's identity related details with the appropriate government or legal authorities for
the purpose of claiming and ensuring legal and or commercial rights and responsibilities.
reporting establishment
An organization used in the production of human resources (HR) reports that are required by
government agencies.
tax reporting unit
A legal entity that groups workers for the purpose of tax and social insurance reporting.

Oracle Fusion HCM (UAE):
HR Implementation and Functional
Considerations
Mar 2015
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