Create labour contract

Requirements

This tutorial requires the installation of the following applications/modules:

Viindoo software system with the employee contracts management feature will help you to:

  • Keep track of contracts history.

  • Manage payroll contributions and salary information.

  • Manage the contract throughout the whole process from when it is signed until it’s expired, extended.

How to create a contract

To create a Labor contract (or Contract), access Employees > Employees > All Contracts.

Viindoo Labor contract menu

You will see a list of Contracts that are grouped by Status, click New.

Create a Labor contract in Viindoo

Your screen will show the following Contract view:

Labor contract view in Viindoo

General information

This is where you fill in the basic information of the Contract. Insert the following information:

General information and details of the contract

General information:

  • Contract Referral: contract name. Add a number/name of the contract according to your company’s regulations.

  • Employee: The employee attached to this contract.

  • Contract Start Date: The date the labor contract start.

  • Contract End date: The date the labor contract end. If the contract doesn’t limit the working time then you can leave it blank. If this is a contract for the trial period then you need to select the same date for the End Date and End of Trial Period fields so that the software can recognize this contract as trial period contract.

  • Salary Structure Type: the salary structure type corresponding to the employee’s position.

  • Salary Structure: the salary structure corresponding to the employee’s position.

  • Working Schedule: The employee working schedule, suggested from the Working schedule field on the Salary structure type’s setting. You can also choose another Working schedule but this field needs to make sure that it is the same as the Working schedule on the Employee view.

  • Work Entry Source: defines the source of work entries generation. Work entries will be generated from the working hours or employee’s attendances.

  • Department: The department where this employee belonged. This field will be auto-filled if you have already set up the Department info on the Employee view.

  • Job Position: The employee’s position. This field will be auto-filled if you have already set up the Job position info on the Employee view.

  • Contract Type: the contract type corresponding to the employee’s contract.

  • HR Responsible: the one who takes responsibility for this contract, usually is the employee who is in charge of salary.

Contract Details

Monthly advantages on the contract

General Policy:

  • Salary Computation Mode: Employee salary is calculated based on day or hour.

    • Hour basis: the employee’s salary is calculated after their working hours.
    • Day basis: the employee’s salary is calculated after their working days.
  • Salary Attendance Computation Mode: how the actual working hour of the employee is calculated.

    • Time-Off Registration: The Actual working days(hours) salary = The days(hours) that the employee has to work - Time-off.
    • Attendance Entries: The salary is calculated based on the attendance data of the employee.

Note

To have the Attendance Entries option, you need to install the Payroll Attendance module.

  • Personal Tax Policy and Tax Rule: Personal Tax Policy and Tax Rule applied for this employee. You need to select the most suitable regime for the contract (probationary or officially).

  • Payslips Auto-Generation: the software will auto-create payslips periodically according to the setting on the Employee’s contract. (Refer to document Create Payslips Automation for more information).

  • Notes: the notes for this contract.

Salary information

This is where you inform the salary-related information. You have to install the to_hr_payroll module to get more information before setting salary in labour contract.

Monthly advantages on the contract
  • Basic Wage: the employee’s basic salary.

  • Gross Salary: gross salary = basic wage + advantages.

  • 13th-Month Salary Structure: select a salary structure to calculate the 13th-month salary for this employee.

  • Monthly/Advantages: The advantages the employee receives. Click Add a line to add an Advantage, the system will suggest the value at the Amount column based on the Advantage form. Select the Included in Payroll Contribution Register option if you want to register this monthly advantage into the Payroll contribution Register.

How to register contribution

This is where to register contributions from employees’ salaries.

Click on Payroll Contribution Types to select a payroll contribution type you want to create for this employee.

Create payrolls contributions registers

After selecting Payroll contribution types, click Create Payroll Contribution.

Generate Payroll Contribution register

The software will generate a Payroll Contribution Register board and draft payroll contributions. To change the information and confirm the Payroll contribution, click on the corresponding line.

Payroll contributions board

A Payroll Contribution Register window will open on your screen, you can adjust the needed information, and then click Confirm to register the contributions into the payroll.

Confirm payroll contribution register

Change the Contract stage

After finishing setting up the needed information on the contract, click Start to run the contract.

Start a contract

If the contract’s end date is within the next 7 days, the contract’s stage will automatically turn red (Set as to renew), you can also mark a contract about to expire by clicking on Set as To Renew.

Set as To Renew

Note

To see the Set as To Renew button, you need to activate developer mode.

If the contract is expired, you can click Close to change the contract to the Expired stage. In case contract is not used anymore, Click Cancel to change it to the Cancel stage, the payroll won’t generate base on contract in next month.

Close ther contract

Moreover, you can change the stage for a contract at the Kanban contract view by dragging it to a different stage.

Change a contract stage on Kanban view

Adjust contract information

There is no payslip

When the contract is in Running or Expired status but no salary slip has been generated and you want to edit the contract information. Access the contract and edit the information you want, then save. Changed information will be recorded in the change history by the system.

Change a contract

Note

If you have a payslip in Draft status, you can click recalculate salary to update it according to the newly edited contract.

The contract has a payslip

The contract in Running status has generated a payslip but needs to change information related to payroll calculation such as: salary, allowances, salary structure, contributions from salary, work schedule, calculation rules tax, … then first need to bring this contract to expiration.

On the Contract details screen, enter Contract End Date and click the Close button.

Change a contract

Contract status changes from Running to Expired.

Change a contract

Next, you need to create a new contract with a starting time equal to the ending date on the old contract plus 1. Input and adjust contract information as required and save.

Change a contract

Click Start to change the status of the new contract to Running. The new contract will become effective.

Change a contract