This article describes how to manage your fixed-term contracts via the Contract ends attribute.
Note: Setting a date for the Contract ends attribute does not initiate an automatic employment termination. For more information on terminating an employment, read the article Manage Terminations of Employment.
What is the Contract Ends Attribute?
The Contract ends preset attribute in the Employee profile refers to the last day of employment as set in a fixed-term employment contract. It is therefore only applicable for employees with a fixed-term contract. Setting a contract end date is for your internal information and does not initiate automatic employment termination on that date. A termination marks the end of any contract and needs to be added separately. An added contract end date sets off connected functionalities like reminders and enables you to take organizational steps before the contract ends either to extend the contract or terminate the employment.
Effects of the Contract Ends Attribute
Administrators and all employees with edit rights for the Personal data section or the section where the attribute is located receive a reminder in their Inbox on the homepage. It is sent 30 days plus not yet planned absence days before the set contract end date (e.g. 30 days + 5 days of remaining leave entitlement = 35 days prior).
Tip: If you want other employees to be reminded of a contract end date, you can create additional reminders in an employee role using the Contract ends attribute. For more information on creating reminders, read the article Creating Reminder Workflows.
Prorated Vacation Entitlement
A set contract end date has a direct effect on the employee's vacation entitlement. The vacation days for the year in which the contract ends are calculated proportionally on the basis of your accrual policies and in accordance with set date of the Contract ends attribute. If you extend an employee's contract, the number of vacation days available to them may also change.
Prorated Salary Calculation for Hourly Wages
For employees with a set contract end date, the hourly salary will be prorated according to the set date in the Contract ends attribute.
Note: While the hourly salary will be set according to the worked days until the contract end date, employees can still track their time in the Attendance tab. However, time tracked after the set contract end date will not be considered in the salary tab.
Highlight in the Timeline View
A set date for the Contract ends attribute is highlighted in orange in the Timeline view under Employees > Timeline view. Since fixed-term contracts can be extended, the employee will still be listed after their expected departure from the company.
How to Extend a Contract
If you want to extend the current employment contract with the employee, follow these steps:
- Go to the employee's Profile > Personal info > HR information.
Tip: If you received a system reminder in your Inbox, click on the action button Prolong contract to go to the attribute in the Employee profile.
- Click on Edit.
- Click into the attribute field for Contract ends and choose a new date via the calendar.
- Click on Submit.
In the case where a fixed-term employment turns into a permanent contract, you can leave the Contract ends attribute blank and delete the contract end date that was originally stored.
Note: The employee's vacation entitlement will be recalculated based on the new or deleted contract end date. For employees receiving hourly wages, the paid hours will be recalculated.