Managing Contract dates
Overview
Employment duration of employees can be managed in three ways -
1. It can be open ended with no end date - this is the default scenario
2. It can be controlled a retirement/superannuation policy. Application Administrator can setup company specific retirement policy for different employee types. Refer article on "Separation setup" for more details
3. It can be for a limited period based on a contract end date : fixed duration employment for both Regular and Subcontractor employees can be managed using the Contract end date feature. This article gives details of how to manage contract end date.Contract Expiry
Contract Extension
2. For employees who are on a fixed duration contract you can extend the contract end date by clicking on "Manage Contract End Date" button. You can update Contract End Date for all records whether the existing date is in past or future or is blank.
1. It can be open ended with no end date - this is the default scenario
2. It can be controlled a retirement/superannuation policy. Application Administrator can setup company specific retirement policy for different employee types. Refer article on "Separation setup" for more details
3. It can be for a limited period based on a contract end date : fixed duration employment for both Regular and Subcontractor employees can be managed using the Contract end date feature. This article gives details of how to manage contract end date.
This feature is available by default for Subcontractor employees but for Regular
employees you will have to get it activated by your Application Administrator
(if not activated already). To check if this feature is activated
- go to HR Manager > Employee Details tab
- if you see "Manage Contract End Date" button click on it, if you see a list
of Regular employees on the popup then the feature is activated
- if you see the button but see only names of Subcontractor employees then feature
is not activated
- if you do not see any button which says "Manage Contract End Date" then this
feature is not activated for Regular employees and Subcontractor feature is also
not activated
System will send an alert before the end of period to HR Manager and HR Executive
for contract renewal as per the weeks defined in Setup > EazeHR > General
setup. This alert will also go to the concerned employees.
Contract Expiry
If
an employee's contract has got over (expired) then the record is treated as a
normal employee and the accruals and processing of linked records is not stopped.
The things which get impacted are -
- employee will not be able to login in EazeWork
- all email notifications will continue to go from system
- employment status will remain as Working (or On Probation) and the HR manager
will have to create a separation request manually if the record has to be closed
- leave accrual will not stop
- pending attendance will be created
- pending payroll can be processed but payroll of the month in which contract
has expired cannot be run
- if employee has payroll reimbursements included in the salary then monthly
accrual of these reimbursement which is done on 1st of each month will continue
- if payroll manager is submitting a payroll reimbursement claim on behalf of
employee he will get a warning message as shown below but system will not stop
him
- for Indian employees who are included in payroll, their name will not come in 24Q return for quarter four if the record
is left at contract expiry status, for the record to be included you will have to process
the full and final
Contract Extension
Follow
the steps given below to update the contract end date for an employee -
1. Go to HR Manager > Employee Management tab. If there are some employees whose contract end date has gone in past but their separation has not been processed you will see a message as shown below. Click on "Download Excel" button to get a list of employees whose contract has expired.
1. Go to HR Manager > Employee Management tab. If there are some employees whose contract end date has gone in past but their separation has not been processed you will see a message as shown below. Click on "Download Excel" button to get a list of employees whose contract has expired.
2. For employees who are on a fixed duration contract you can extend the contract end date by clicking on "Manage Contract End Date" button. You can update Contract End Date for all records whether the existing date is in past or future or is blank.
When the contract is extended
- the new contract end date is taken as the end date and it replaces the previous
contract end date
- if there is a break in contract then you will have to resign this employee
and add him again with the new contract start date
If you put a contract end date which is of past you will get a warning message
as shown below.
Contract end date cannot be changed if separation is in process. For HR Manager
if the contract expires system auto extends the contract.
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