3.22 Employees’ end of service benefits
Employees’ end of service benefits
Defined contribution plan
With respect to its UAE national employees, the Group makes contributions to the relevant government pension scheme, calculated as a percentage of the employees’ salaries. The Group’s obligations are limited to these contributions, which are expensed when due.
Defined benefit plan
The Group provides end of service benefits for its employees, i.e. Gratuity. The entitlement to these benefits is based upon the employees’ length of service and completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment.
Share-based payments
The grant-date fair value of equity settled share base payment arrangements granted to employees is recognized as personnel expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to meet, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
Share capital, other equity and reserves
Other equity instruments
The Group classifies instruments issued as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments. The Group’s other equity instruments are not redeemable by holders and bear an entitlement to coupons at the sole discretion of the board of directors. Accordingly, they are presented within equity. Distributions thereon are recognised in equity. Based on the Group’s assessment of the terms of the instruments, the coupon payments meet the definition of dividends.
