Modifying contracts using amendments and addenda

Employment contracts with an Approved status and employee contracts with an Accepted status can be modified through amendments and addendums.

Amendments update existing contract information. Addendums add new information that did not previously exist. You can apply amendments and addendums to an employment contract, associated employee contracts, or a single employee contract. An amendment or addendum applied to an employment contract does not affect employee contracts that have already been individually modified with different details. After you modify a contract, employment contract administrators can require employees to re-acknowledge the contract and track changes made to the modified records.

If Contract Pay is enabled on the employment contract, the Submit Contract Modifications form includes the Contract Pay Rule field. Use the Contract Pay Rule field to specify or override the pay rule used to create contract pay details for employee contracts without a base pay assignment. If the field is blank, the pay rule from the Details tab of the employment contract is used.

You cannot submit modifications if open contract pay time records have not been closed through payroll processing. You must process all contract pay time records before you submit an amendment or addendum. If an amendment changes the contract end date, the new end date must be after the last processed payroll cycle for all employee contracts pay details.

If an amendment changes the contract end date for a Contract Pay-enabled employment contract:

  • Work schedule date details and pay cycles are automatically updated when the new end date is within one year of the contract begin date.
  • A warning is generated if the new end date is more than one year after the contract begin date. In this case, you must manually add work schedules to cover the additional period.
  • Employee contracts pay date details are updated as follows:
    • If the contract end date is shortened, excess details are removed.
    • If the contract end date is extended, new details are generated.

When you submit a modification at the employment contract level, the changes apply to all active employee contracts that have not been individually modified. This includes status changes, date updates, template and section replacements, and contract pay detail updates. To determine whether an employee contract has been individually modified, review the Contract Modified column on the Employee Contracts tab of the employment contract.

If the Use For Candidate check box is selected on the employment contract, amendments and addendums work the same way as they do for contracts that are not used for candidates. Employee contracts created through the candidate job offer process are included in the modification and receive the same updates as other employee contracts.

If Employee Contract Consolidation is enabled on the employment contract, these additional rules apply:

  • You can initiate individual employee contract modifications, such as amendments and addendums that apply to a single employee contract, only for records with a NONE or MAIN value. When you modify a MAIN employee contract, the changes also apply to related SUPPORTING records.
  • The Contract Modified flag is set to True for the MAIN record and all associated active SUPPORTING records.