Implement a change in a contract
In this article you will find an explanation on how to change a contract as well as end a contract. A contractual change occurs: an employee works less hours, gets a different schedule or employment, or stops working for the company. These situations bring forth changes which have to be entered into the system. Very often, this influences the leave balance.
Attention! If you should ever need to change a contract, you should always add a new contract rule instead of deleting one! – When you change a contract rule, the change will influence the entire period for which the contract rule applies. This could then also have a retroactive effect if the contract rule started in the past! In this case click on the pencil of the contract rule you would like to change.
With a new contract rule you create a timeline for employees which preservers history and keeps the balance accurate.
Change a contract
Contract rules can be altered below the edit employee page.
After you have selected ‘new’, the following screen will appear:
You will then see a number of options appear. Depending on what you wish to change in the contract, you could change one or more of the following:
- Takes effect on: Fill in the starting date here, meaning that the changes below will take effect from that moment onwards. This way you place the change on the timeline.
- Employment: Is the employee going to change employments? Select the employment for which the employee will be engaged with. If the new employment not in the list, you will have to create one; this can be done under master data in the menu on the left. Click here to read more about employments.Attention! There are only 3 reasons to give an employee a new employment. In all other cases the employee should keep the same employment. Always check the following 3 reasons before giving an employee a new/other employment;
- Compared to an existing, full-time employment, the employee is entitled to more, or less leave days.
- Compared to an existing employment, the employee is entitled to more, or less types of leave.
- Compared to an existing, full-time employment, the employee is entitled to more, or less, senior/seniority days.
- Schedule: If the schedule of the employee is to change, select the new schedule here. For this, the same applies: if the desired schedule is not in the list, you will have to create one under master data. Click here to learn more about creating schedules. Attention! When the number of hours in the employee’s contract is changed, the schedule has to be changed. It is important to note that a new schedule should be created in this case; it is not wise to edit the old one. When the old schedule is edited, while the contract has not been changed yet, the schedule will be implemented straight away. This is because the schedule is still linked to the employee, and could also be linked to other employees. This also affects the effectiveness of the change of contract scan. For your convenience, the current schedule can be copied by using the copy function. Go to ‘Master data’ ⇒ ‘Schedules’. To copy, use the first icon, next to the little pencil. Give the schedule a new name, fill in the schedule, and save.
- Percentage: Enter the percentage of the employment which the employee will be working. The number of leave days will be calculated based on the employment and the percentage which the employee will be working. Read here how to apply/calculate the right percentage.
- Reason: You may add a reason for the change here, for instance: promotion, working less hours, etc.
Do not forget to click ‘save’. The employment has now been changed.
Check the new contract rule for conflicts
The Leavedays system can do a scan of the requests in the system after a contract has been edited. It could be possible that there are still requests in the system which were already requested and approved before the change took place. Conflicting information can arise between the new schedule and the request. This conflict can be solved or deleted by the administrator. This is called the Analyzer.
Click on magnifying glass on the left side of the newly created contract rule:
This screen shows all the conflicting information the system has found; all requests that contain differences after the contractual change are shown in their own section. From the example above can be seen that there are two requests that contain conflicting information when compared to the new contract rule. At each section, a few options can be found and selected in the right hand corner of the section.
When the little lightning bolt is selected, the suggested change will be implemented. This should be clicked when the suggested change, which can be viewed when the magnifying glass is selected, matches the changes implemented in the contract of the employee.
The magnifying glass is found on the right. With this option, you can zoom in on the request itself. The following screen will be shown, containing a detailed account of the suggested change of this request, which will be compatible with the edited contract.
When a request has to be edited, undertake the following steps:
– Go to ‘Administration’ ⇒ ‘Employee balance summary’.
– Select the employee whose request has to be edited.
– Select the type of leave of which you want to edit the request.
– Select the request you want to edit. You now have the opportunity to change the request. Select this option, edit the request, and save the changes. The request has been edited.
The logbook is accessible from the edit employee screen. Each contractual change that has been carried out will appear in this logbook. This way, insight can always be gained with regard to who has implemented the change, as well as when and why. Deleted contract rules will also be shown in this overview. In the image below, you can see how changes in a contract have been documented.