"Labor Contracts" scenario
Labor contracts are used to register transactions related to personnel records of the organization's employees, as well as to determine the essential working conditions, which, in accordance with the law, must be defined in the labor contract. With the help of labor contracts, the hiring and dismissal of employees, their transfer to another position, changes in salary, calendar, etc. are formalized. A labor contract is concluded individually with each person. During work in the company, all transfers, part-time work, as well as changes in essential working conditions are registered by creating additional lines in the labor contract. In the case of internal combination, when in accordance with the law a separate labor contract must be concluded with an employee, a new labor contract should be drawn up with the Internal Part-time Work or External Part-time Work nature of the work (if the employee does not work for us as their main place of work).
Step 1. Labor Contract Card
It is possible to view the list of labor contracts and create new ones in the labor contracts directory.
Labor Contract page, Header
| Field | Description |
|---|---|
| No. | Determined automatically in accordance with the selected number series (General Module Setup scenario). |
| Contract Type | Type of contract: • Labor Contract, • Civil Contract. |
| Labor Contract Type Code | An information field that can be used by a company for internal classification of contracts. |
| Person Code | Select the code of a person the labor contract was concluded with. |
| Person Full Name | The full name of a person is filled in automatically when selecting a Person Code. |
| Nature of work | Nature of work:• Main work, • Internal Part-time, • External Part-time. |
| Description | Text description of the labor contract. |
| Person Category | Must have a code value according to law. The value is transferred to the employee card and payroll document lines for further use in reports. |
| Start date | Start date of the contract. Required field. |
| End date | End date of the contract. For open-ended contracts, this field may be empty. When adding a line with the "Dismissal" type, you must first specify the contract end date. |
| Renew | Enable if you need to renew the labor contract automatically. Running report 70950672 allows you to renew the labor contract automatically. |
| Renewal period | The period of renewal of the labor contract is calculated by the start date and end date. The renewal period field is filled in automatically with the following sequence of actions: fill in the required fields in the header of the labor contract (except for renewal = TRUE); create a labor contract line; set Renewal = TRUE. |
| Status | The current status of the contract. Filled in automatically when the user runs the corresponding function: • Open – the contract is registered in the system, but the employee has not yet been hired and any terms of the contract can be changed directly in the contract. • Approved – the employee has been hired, any changes to the contract must be carried out through formal procedures. The status is established at the time of approval of the contract line with the “Hire” type. • Closed – the contract is closed (terminated). |
| Employee code | At the time of approval of a contract line with the “Hire” type, the system generates an employee card corresponding to this labor contract. The code of the created card is indicated in the field and cannot be edited. |
| Labor Relations Place No. | The unique number of the organization, the same for all records in the work record books for one enterprise. Used to create records in E-labor activity (E-labor Activity scenario). The field is available for editing regardless of the status of the Labor Contract to allow updating/creating records in E-labor activity for already approved lines. |
The system makes it possible to draw up the following types of hiring contracts taking into account the following limitations:
| Value | Additional parameter | Limitation |
|---|---|---|
| Labor Contract | Nature of work – Main job (hereinafter referred to as the Main Contract) | Only one active Transfer and Part-time is possible. |
| Labor Contract | Nature of work – Internal part-time | There must be a valid Main Contract. |
| Labor Contract | Nature of work – External part-time job | There are no valid Main Contracts. |
| Civil Contract | The position card contains the “Freelance” option. |
Depending on the type of labor relationship, the contract may contain lines of the following type: • Hiring – a line of this type must be present in all contracts and be the first. • Transfer – a line of this type is generated when an employee is transferred/replaced to another position or essential working conditions change. If the labor contract is limited in validity, the transfer is permitted within the specified validity period. • Part-time – a line of this type is formed in cases of combining positions. • Dismissal – a line of this type is present in all terminated contracts and is the last one. Based on this line, an employee dismissal order is generated and the final calculation of salary is carried out. When approving a labor contract line with the Dismissal type, there is a check that the employee does not have absence orders that end later than or equal to the Dismissal Date; if there are such orders, an error appears with the description of such an order and the dismissal is not posted.
The following fields must be filled in the contract lines:
Labor Contract page
| Field | Description |
|---|---|
| Status | The current status of the contract line is set automatically by te functions run from the "Functions" menu: "Approve line", "Cancel line approval". If the status of a line is “Approved”, all line parameters, as well as contract terms associated with the line, are non-editable. |
| Operation type | Contract line type: • Hire. • Transfer. • Part-time. • Dismissal. |
| Appendix No. | Number of the appendix (additional agreement) to the contract. This is a key field, so you should follow the automatic numbering generated when you create the labor contract line. If there is a need to change the numbering, then you must follow the principles of numbering and sorting fields with the Code type. |
| Order No. | At the time of approval of the document line, the HR order number is assigne automatically. The next number will be selected in accordance with the number series specified in the “HR order number series” field. The field value can be specified manually; upon approval, the “Manual numbering” setting for the number series will be checked. |
| Order Date | You can manually enter the date of the order in this field. |
| Start Date | The start date of this order (appendix) to the labor contract. For a line with the "Hiring" type, the field value must match the value of the Start Date field specified in the document header. |
| End date | Expiration date of this appendix to the labor contract. The field may be empty if an order is being issued for an indefinite period. For a valid line of a labor contract, the field is filled in automatically when the employee is transferred to another position or dismissed. |
| Description | Text description of the labor contract line. |
For the lines with the Hire, Transfer, Part-time types, parameters that determine the hiring terms and working conditions are filled out.
Labor Contract page
| Field | Description |
|---|---|
| Position No. | The position number is selected from the list of open free positions at the start of the contract. For contracts with the “Civil Contract” type, only positions with the “Freelance position” type are selected. |
| Position Rate | The position rate is filled in automatically after specifying the position number. Please note that the rate in the labor contract line cannot be changed and must always match the rate indicated on the position card. |
| Budget position | If the “Use budget positions” checker is enabled in the HR and Payroll Setupp (General Module Setup scenario), specify the budget position. |
| Change | Used when changing data in a position card (salary, calendars, etc.), while positions are added automatically, data changes in the actual position. |
| Budget position | If the “Use budget positions” checker is enabled in the HR and Payroll Setup (General Module Setup scenario), the position is added automatically. |
| Start date of the probationary period | The field is filled in automatically with the start date of the contract if the position selected in the line of the labor contract provides for a probationary period. The field can be changed manually. |
| Renewal | A checker is enabled if there is a renewal of the labor contract. |
| Renewal period | The period for renewing the labor contract is indicated, it is calculated based on the start date and end date. |
| End date of the probationary period | The field is filled in automatically with the start date of the contract if the position selected in the line of the labor contract provides for a probationary period. The duration of the probationary period is indicated on the position card. The field can be changed manually. |
| Description of probationary period | Text description of the duration of the probationary period. |
| Transfer Type | You can select the transfer type to use in the Excel printed form. |
| Temporary | Enable for the Transfer line if this is a temporary transfer that does not need to be reflected in reporting. |
| Number Series | A series of HR order numbers that is used to determine the HR order number of this operation when the line is approved. The value will be determined by default from the General Module Setup, but can be changed by selecting one of the associated series corresponding to the given operation type. |
| Text template | You can select Text template to generate order text used when printing a Word order. |
| Event type | Filled in automatically depending on the Operation type, Contract type and Nature of Work. The field is necessary to create records in E-labor activity (read more in the Approval of Labor Contract Lines for E-Activities scenario). |
| Event code | Filled in automatically depending on the Event type and Operation type. The field is necessary to create records in E-labor activity (read more in the Approval of Labor Contract Lines for E-Activities scenario). |
| Document type | Filled in automatically depending on the Event type, Operation type and Contract type. The field is necessary to create records in E-labor activities (read more in the Approval of Labor Contract Lines for E-Activities scenario). |
The values of the Event Type, Event Code, Document Type fields are filled out automatically by the system according to the following value matrix stipulated by the law:
| Contract Type | Nature of Work | Event Type | Operation Type | Event Code | Document Type |
|---|---|---|---|---|---|
| Labor Contract | Main job | 1 | Hire | 1 | 1 |
| Labor Contract | Main job | 1 | Transfer | 2 | 1 |
| Labor Contract | Main job | 1 | Dismissal | 3 | 1 |
| Labor Contract | Internal Part-time, External Part-time | 2 | Hire | 1 | 1 |
| Labor Contract | Internal Part-time, External Part-time | 2 | Transfer | 2 | 1 |
| Labor Contract | Internal Part-time, External Part-time | 2 | Dismissal | 3 | 1 |
| Civil Contract | Main job | 6 | Hire | 4 | |
| Civil Contract | Main job | 6 | Dismissal | 5 |
For a line with the Dismissal type, the following fields must be additionally defined:
Labor Contracts page
| Field | Description |
|---|---|
| Dismissal Reason | Select the dismissal reason code from the “Dismissal Reasons” directory. |
| Dismissal document | Text field for recording a document related to the reason for dismissal. This field is optional. |
| Number series | A series of numbers that is used to determine the HR order number of this operation when the line is approved. The value will be determined by default from the General Module Setup, but can be changed by selecting one of the associated series. |
| Text template | You can select a Text template to generate the order text used when printing the order with reports configured using Word layout. |
Overview of the functional buttons on the Lines tab.
Functions button
| Button | Description |
|---|---|
| Create contract terms | The line must have the terms of the contract. When you click the “Create contract terms” button, the system creates the terms of the labor contract based on the working conditions defined by default for the elements of the organizational structure, as well as the position and the person card. From the probable options for the terms of the labor contract, the best conditions from the employee’s point of view are selected. |
| Approve Line | Approving the line of the labor contract, assigning it the “Approved” status and completing the list of required actions in the system. |
| Stop Part-time | Closes a labor contract position with the “Part-time” type. |
| Cancel Line Approval | The line status changes to “Open”, and you can then make changes to the line or Contract Term. Please note that approval can only be canceled for an employee for whom salary calculation was not carried out, etc. When you cancel a line approval, the employee card is not deleted. |
Print button
| Button | Description |
|---|---|
| Order for Line | Runs a selection of report printing based on the Report Selection setting and line type. Custom order forms are configured using Word layout. |
Line button
| Command | Description |
|---|---|
| Contract Terms | Displays a list of terms for the current line of the labor contract. Please note that if any terms, such as annual vacation, do not change when an employee is transferred to another position, they should not be included on the transfer type line of the labor contract. Please note that the list of contract terms can be changed. The terms of the contract specified in the line of the labor contract are taken into account, but it is not recommended to change the line that is responsible for the amount of the base salary. |
| Comments | Comments on the line of the labor contract. |
| HR Order Text | When you select a value in the “Text template” field, a value will be generated in the Order Text field according to the rules described in the Text Templates scenario. The texts in these fields can be edited, and it can be used when printing orders with reports that are configured using Word layout. |
| Attachments | On the page, you can attach external files to a specific order line. |
| Employee Signatures | Signing of the document by responsible employees. |
Step 2. Essential conditions of the labor contract
To automatically determine the working conditions under the contract, set by default for a person occupying the selected position, run Functions – Create contract terms on the labor contract card. Please note that the contract line must be filled in, it is necessary to define the Position No. and Start date fields. The system will analyze all the conditions that can be applied for a given line of the contract and a specific person and generate a list of “Contract Terms” (Line – Contract Terms). In the list, the best, from a person’s point of view, possible conditions will be selected for each element code.
For contract lines with the Hire, Transfer types, creating lines of contract terms with the Payroll Element (for accruals or deductions) and Vacation Accrual ( for the number of vacation days) types is required. Without the Vacation Accrual condition, a line of the Hire type can be approved only if the Do not check vacation conditions setting is enabled in HR and Payroll Setup. For a contract line with the Dismissal type, you can create a line with the Vacation Compensation type; read more about such lines in the Vacation Compensation scenario.
For a contract line with the Part-time type, you cannot use the same payroll element for salary payent (1001, 1002, 1003, 1004) as for "Hire" and "Transfer", but you must use a separate element. When adding a line in a contract with the "Part-time" type, you must indicate a free position; after the line is approved, the position will be displayed in the Staffing List as occupied. If an employee is temporarily performing the duties of another employee, you can simply add a payroll element for additional payment for replacement through the “Employee Journal” or “Conditions of Substitution” in Vacation and Business Trip Orders. Working conditions can be edited until the line of the labor contract is approved.
The Use increase coefficient setting value is used when calculating the average salary for vacation in accordance with Resolution 100, clause 10. If the setting is enabled, this salary increase (line with Transfer type) is used to calculate the increase coefficient.
The Limit increase coefficient setting value is used when calculating the average earnings for vacation in accordance with Resolution 100, clause 10. If the setting is enabled (for line conditions with the Transfer type), then all previous increases are not taken into account when calculating the increase coefficient (“In the event of a change in the tariff rate (official salary) of an employee in connection with the assignment of a higher rank, transfer to another higher-paid job (position), etc. no such adjustment to average salary is made.").
The Coefficient value setting value is used when calculating the average earnings for vacation in accordance with Resolution 100, clause 10. If the setting is enabled (for line conditions with the Transfer type), then the coefficient is used to calculate the average as a ready value, and not a calculated one (“At state accounting enterprises and organizations, salaries and other payments are adjusted taking into account their financial capabilities.").
If an employee has a vacation balance from their previous job, then it must be entered after approval of the line of the labor contract through the “Vacation Journal” (read more in the Vacation Journal scenario), adding vacation days to the main vacation.
Step 3. Labor Contract Approval
Each line of the labor contract must be approved (Functions – Approve Line). Upon approval of a labor contract line with the “Hire” type, the following actions are performed in the system:
- A new employee card is generated (the code of the created employee card is indicated in the Employee Code field). 2.In the employee card, the fields defined for a person or known from the labor contract are filled in automatically.
- A new record is generated about the place and nature of the employee’s work (available from the Employee Card: “History” - “Employee Work Record”). 4.In the Employee Ledger Entry (available from the Employee Card: “History” – “Employee Ledger Entry”), the working conditions defined in the line of the labor contract are specified.
- Information is generated about the billing period for vacation and the vacation days accrued to the employee (information is available from the Employee Card: “History” – “Vacation Balance”).
- A planned time sheet is generated.
Upon approval of a labor contract line with the “Transfer” or “Part-time” type, steps 3 and 4 are performed. It should be noted that only the working conditions that were changed in the labor contract line are changed. Please note that changes to the number of vacation days are not automatic. If the number of vacation days has changed when a position is changed, you must make changes manually through the Vacation Journal (Vacation Journal scenario). Upon approval of a line with the "Transfer" type in the middle of a period to a position with another payroll group, if the "Create Salary Status Details" checker is enabled in the module settings, a payroll status will be created for each unique payroll group in the Salary Status Details table. When creating final payroll documents for a period, several employee payroll documents will be created for each unique payroll group. Please also note that if in a labor contract a transfer to a position with another AT codifier is performed in the middle of the month, and on the HR and Payroll page, “Create Salary Status Details” = OFF, the system will not allow such a transfer to be approved. To be able to differentiate an employee’s income according to different AT codifiers (for further correct creation of the “Tax calculation of income amounts” report), several final payroll documents must be created for the employee in the month of transfer. At the same time, if "Create salary status details" = ON, and the transfer in the middle of the month occurs to a position with a different payroll group, then such a transfer will be successfully approved. Please note that even with the “Create salary status details” option enabled, if a transfer to a department with a different AT codifier in the middle of the month occurs to a position with the same payroll group as the previous position, the approval of such a transfer will also be rejected by the system. In this case, only one payroll document with one payroll group will be created for the employee in the month of transfer, and in this case there will be no opportunity to differentiate income among different divisions with different AT codifiers.
Upon approval of a labor contract line with the “Dismissal” type, the following actions are performed in the system: 1.The employee’s card is updated: the date of dismissal is set, the employee’s status is “Dismissed”. 2.The position held by the employee becomes free. 3. All entries in the Employee Ledger Entry are limited to the date of dismissal. Operations under conditions of dismissal (vacation compensation, benefits) are attached. 4.Vacation accruals in the Vacation Balance are limited to the date of dismissal. 5. From the time sheet and from the salary status, entries for periods that are longer than the dismissal period are deleted.
Step 4. Group Orders
The system supports the ability to create a group order for HR records/transfer of employees. Before using a group order, labor contract lines for each employee must be created, filled out correctly and be in the Open status. The following fields must be filled in the group order header:
Group Order page, Header
| Field | Description |
|---|---|
| Document type | The order type determines the type of labor contract lines that will be included in the order. Possible document types: • Hire, • Transfer, • Dismissal. |
| No. | The order number is determined automatically in accordance with the number series specified in HR and Payroll Setup (General Module Setup scenario). Please note that each group order type has its own number series. If in the lines of labor contracts selected in the lines of the group order, the Order No. field was not filled in, then when the document is approved, this field will be filled in with the value of the No. field from the group order. |
| Description | The text field outlines the contents of the order. The field is for informational purposes. |
| Document date | Order date. If in the lines of labor contracts selected in the lines of the group order, the Order Date field was not filled in, then when the document is approved, this field will be filled in with the value of the “Document Date” field of the group order. |
| Posting date | Date of posting the order. |
| Status | Current status of the order: • Open, • Approved. |
| HR order number | HR order number. |
| HR order number series | Selecting a series of HR order numbers. |
| HR order date | HR order date. |
| Use group order details | Using/not using group order details for lines (date, order number). |
| Responsibility Center | Displays the responsibility center. |
In the lines of the document, it is necessary to indicate the lines of labor contracts that must be approved within the scope of the order. A list of lines can be generated automatically using the Get Contracts function (Functions – Get Contracts). The function provides the ability to add selected lines of labor contracts to the lines of a group order.
Group order page, Lines
| Field | Description |
|---|---|
| Contract No. | The number of the labor contract with the employee. |
| Appendix No. | The field is automatically filled in after specifying the contract. |
| Employee Name | Employee's full name. Filled in automatically when selecting an Employee Code. |
| Status | Line approval status. |
| Order No. | Order number. |
| Order Date | Order creation date. |
To approve the order, click the Approve button on the Actions – Functions tab. Status of the labor contract lines will be approved in bulk and the related actions will be performed. To generate a printed form of the order, click Print. The format of the required printed form will be determined automatically depending on the type of order.
If you approve a Staffing List Order to rename a department or position, group transfer order lines for active positions will be created automatically.