Creating employment contracts

  1. Select Contracts > Employment Contracts.
  2. Click Create.
  3. Specify this information:
    Employment Contract
    Specify a name for the employment contract. Optionally, specify a description.
    Active
    Select the Active check box to make this version of the employment contract active. When the contract is active, a new version of the contract can be created. The Change Status action can be used after the contract is saved, and the Save action is displayed. If the Active field is cleared, users can't save any changes made to the contract.
    Type
    Select the contract type. Contract types are used to define the structure of the contract. A contract type is required on an employment contract.

    See Contract types.

    Status
    The contract is created in Draft status.

    See Employment contract statuses.

    Category
    Select the contract category. The contract category is used to group contracts and provide information about why the contract was created. The contract category can also be used when searching employment contracts.

    See Contract categories.

    Reason
    Select the contract reason. The contract reason is used to provide information about why the contract was created, such as hiring a new resource.

    See Contract reasons.

    Rehire Waiting Period
    Optionally, specify the amount of time that must pass until an employee can be rehired to this type of contract. Specify a number and then use the field to the right to select the unit of time.
    Note: The Rehire Waiting Period field is for informational purposes only. It does not prevent the rehire action from being invoked and completed.
  4. On the Details tab, specify this information:
    Begin
    Select the date on which the employment contract begins.
    End
    Optionally, select the date on which the employment contract ends. This field is required for fixed term contracts. If you specify a begin date, duration unit, and duration, the end date is calculated automatically.
    Duration Unit
    Optionally, specify the unit of time to use to determine the length of the contract. If you do not select a value, the duration unit is set to Days.
    Duration
    Optionally, specify a numeric value to use along with the specified duration unit to determine the length of the contract. If you specify a begin date, end date, and a duration unit, the duration is calculated automatically.
    Contracted Time
    Optionally, specify the contractual work time. For example, the contracted time could be 7 Hours Daily, 3 Days Weekly, 3 Weeks Monthly, or 9 Months Annually.
    Employee Contract Template
    Select a template to use for this employment contract.

    See Attaching templates to employment contracts.

    Accept By Date
    Optionally, specify the date by which an employee must accept or reject their employee contract.
    Generate Employee Contracts Upon Approval
    Optionally, select the field to automatically create employee contracts for the employment contract after it is approved. Employee contract records are created in Draft status for all active employee work assignments associated with positions on the employment contract. The new employee contract records are available on the Employee Contracts tab of the employment contract. To use this feature, the Active check box must be selected on the employment contract.
    Do Not Allow Position Date Overlaps
    Optionally, select this check box to prevent positions attached to this employment contract from being attached to other employment contracts with the same or overlapping date ranges. If this check box is not selected, positions that are attached to this employment contract can also be attached to other employment contracts. They can be attached even if the date ranges are the same or overlap. If a position that is attached to this employment contract is attached to another employment contract with an overlapping date range, a yellow alert is displayed next to the position.
    Do Not Allow Employee Contract Overlaps
    Optionally, select this check box to prevent the creation of multiple employee contract records with overlapping dates and the same work assignment for this employment contract.
    Consolidate Employee Contracts
    Select this check box to enable employee contract consolidation for the employment contract. When enabled, multiple active employee contract records for the same employee under the employment contract are automatically consolidated. The consolidation results to one MAIN record and one or more SUPPORTING records, based on defined consolidation rules.

    See Employee contract consolidation.

    Use For Candidate
    Select this check box to enable the employment contract to be presented to candidates. When this option is selected, the Candidate Contract Template field is displayed.

    To use this feature, you must set up and define contract sections and templates specifically for candidate contracts.

    See Creating an employment contract section and Creating an employment contract template.

    Attaching a position is required when you select the Use For Candidate field. The requirement ensures that the employee contract created on the hiring date is linked to the employment contract for the hired position.

    See Positions attached to employment contracts.

    Candidate Contract Template
    Select a candidate contract template. To save an employment contract, you must select both a Candidate Contract Template and an Employee Contract Template.
    Note: Use For Candidate must be enabled.

    If one or both templates are not selected, an error message is displayed when you click Save.

    Use Contract Pay
    Optionally, select this check box to use the contract pay feature for the employment contract. Selecting this check box enables the Pay Rule field on the Details tab and shows the Work Schedule tab with one work schedule required. The pay rule and work schedule are used to determine how time records are generated and the employee is paid for contract pay. If the Use Contract Pay check box is cleared, standard HR Payroll functionality is used to determine how time records are generated and the employee is paid out for the employment contract.
    Pay Rule
    If you selected the Use Contract Pay check box, then specify a pay rule to use when paying employees with employee contracts that are associated with the employment contract. This pay rule acts as the default and you can override this value at the employee contract level.
  5. Click Save.