Employee benefit packages are a vital consideration for any employer that wishes to attract and retain the best talent, as well as to maintain a loyal and committed workforce. One of the main components of any employee benefit package is corporate pensions or savings provision. Employees from most backgrounds now consider retirement provision a key part of their remuneration package.
Companies undertaking specialist activities, or operating from certain regions such as the Middle East, invariably recruit a high proportion of their workforce from overseas. The relocation, orientation and training of expatriate employees require considerable investment from the employer, making staff retention all the more important. Any business must also be aware of local employment law wherever they have a presence and need to ensure that any employee benefit obligations are met.
Sovereign has extensive experience in designing and operating corporate pension schemes. Our clients range from large international businesses to smaller firms just starting out. Sovereign’s team of experienced consultants is on hand to assist throughout the process, from design through to implementation. This includes building solutions to interact with “End of Service” (EoS) gratuity obligations, or stand-alone arrangements if preferred. Sovereign also offers individual portable pension arrangements for internationally mobile employees and senior staff.
Companies operating in the Middle East are usually obliged to offer their staff an EoS gratuity payment when they leave the company. The level of gratuity is based on the individual’s salary and length of service and is payable as a lump sum. Gratuity rules and terminology vary around the GCC region, but generally operate in a similar fashion. Where employers fail to invest or plan for their EoS gratuity obligations, it can lead to cash flow problems if staff turnover is higher than anticipated or if the business lacks liquidity when payments are due.