documentation/content/applications/hr/payroll/contracts.md

# Contracts

Every employee in Odoo is required to have a contract in order to be paid. A contract outlines the
terms of an employee's position, their compensation, working hours, and any other details about
their position.

:::{important}
Contract documents (PDFs) are uploaded and organized using the *Documents* application, and are
signed using the *Sign* application. Ensure these applications are installed to send and sign
contracts. Please refer to the {doc}`../../productivity/documents` and
{doc}`../../productivity/sign` documentation.
:::

To view the employee contracts, go to the {menuselection}`Payroll app --> Contracts --> Contracts`
from the top menu. All employee contracts, and their current contract status, are displayed in a
Kanban view, by default. The Kanban view displays running contracts, contracts that require action,
expired contracts, and cancelled contracts.

```{image} contracts/contracts-overview.png
:align: center
:alt: Contracts dashboard view showing running contracts and contracts with issues.
```

:::{note}
The list of contracts in the *Payroll* application matches the list of contracts in the
*Employees* application.
:::

(payroll-new-contract)=

In order for an employee to be paid, an active contract is required. If a new contract is needed,
click the {guilabel}`Create` button on the {guilabel}`Contracts` dashboard. A contract form appears
where the information can be entered. Required fields are underlined in bold.

## New contract form

(payroll-gen-info)=

## General information section

- {guilabel}`Contact Reference`: type in the name or title for the contract, such as `John Smith
  Contract`. This field is **required**.

- {guilabel}`Employee`: using the drop-down menu, select the employee that the contract applies to.

- {guilabel}`Contract Start Date`: the date the contract starts. To choose a date, click the
  drop-down menu, navigate to the correct month and year with the {guilabel}`< > (arrow)` icons,
  then click on the desired date. This field is **required**.

- {guilabel}`Contract End Date`: if the contract has a specific end date, click the drop-down menu,
  navigate to the correct month and year with the {guilabel}`< > (arrow)` icons, then click on the
  desired date.

- {guilabel}`Working Schedule`: select one of the working schedules from the drop-down menu. This
  field is **required**.

  :::{tip}
  The {guilabel}`Working Schedule` drop-down menu displays all the working schedules for the
  selected company. To modify or add to this list, go to {menuselection}`Payroll app -->
  Configuration --> Working Schedules`. Click {guilabel}`New`, and create a new working schedule,
  or click on an existing working schedule and make edits.
  :::

- {guilabel}`Work Entry Source`: select how the {doc}`work entries <work_entries>` are generated.
  This field is **required**. Click the radio button next to the desired selection. The options are:

  - {guilabel}`Working Schedule`: work entries are generated based on the selected
    {guilabel}`Working Schedule`.
  - {guilabel}`Attendances`: work entries are generated based on the employee's check-in records in
    the *Attendances* application. (This requires the *Attendances* application).
  - {guilabel}`Planning`: work entries are generated based on the planned schedule for the employee
    from the *Planning* application. (This requires the *Planning* application).

- {guilabel}`Salary Structure Type`: select one of the salary structure types from the drop-down
  menu. The default salary structure types are {guilabel}`Employee` or {guilabel}`Worker`. A
  {ref}`new salary structure type <payroll/new-structure-type>` can be created, if needed.

- {guilabel}`Department`: select the department the contract applies to from the drop-down menu.

- {guilabel}`Job Position`: select the specific job position the contract applies to from the
  drop-down menu.

  :::{note}
  If the selected {guilabel}`Job Position` has a contract template linked to it with a specific
  {guilabel}`Salary Structure Type`, the {guilabel}`Salary Structure Type` changes to the one
  associated with that {guilabel}`Job Position`.
  :::

- {guilabel}`Wage on Payroll`: enter the employee's monthly wage.

- {guilabel}`Contract Type`: choose either {guilabel}`Permanent`, {guilabel}`Temporary`,
  {guilabel}`Seasonal`, {guilabel}`Full-Time`, or {guilabel}`Part-Time` from the drop-down menu.

:::{figure} contracts/required-fields.png
:align: center
:alt: |-
:  New contract form to be filled in when creating a new contract, with required fields
:  outlined in red.
:::

- {guilabel}`Contact Reference`: type in the name or title for the contract, such as `John Smith
  Contract`. This field is **required**.

- {guilabel}`Employee`: name of the employee the contract applies to.

- {guilabel}`Contract Start Date`: the date the contract starts. Choose a date by clicking on the
  drop-down menu, navigating to the correct month and year by using the {icon}`fa-chevron-left`
  {icon}`fa-chevron-right` {guilabel}`(arrow)` icons, then clicking on the desired date. This field
  is **required**.

- {guilabel}`Contract End Date`: the date the contract ends. Choose a date by clicking on the
  drop-down menu, navigating to the correct month and year by using the {icon}`fa-chevron-left`
  {icon}`fa-chevron-right` {guilabel}`(arrow)` icons, then clicking on the desired date. This field
  is **required**.

- {guilabel}`Salary Structure Type`: select one of the salary structure types from the drop-down
  menu. The default salary structure types are {guilabel}`Employee` or {guilabel}`Worker`. A new
  salary structure type can be created by typing the name in the field. This field is **required**.

- {guilabel}`Working Schedule`: select one of the working schedules from the drop-down menu. This
  field is **required**.

- {guilabel}`Department`: the department the contract applies to.

- {guilabel}`Job Position`: the specific job position the contract applies to.

- {guilabel}`Wage on Payroll`: the amount to be paid to the employee each month.

- {guilabel}`Contract Type`: choose from {guilabel}`CDI`, {guilabel}`CDD`, or {guilabel}`PFI` from
  the drop-down menu.

  - {guilabel}`CDI` is an open-ended contract with only a start date, but no end date.
  - {guilabel}`CDD` is a contract with both a start date and an end date.
  - {guilabel}`PFI` is a Belgian-specific contract used when hiring employees that need training,
    and covers the training period specifically.

- {guilabel}`HR Responsible`: if there is a specific person in HR that is responsible for the
  contract, select the person from the drop-down menu. This field is required.

:::{tip}
The {guilabel}`Working Schedule` drop-down menu displays all the working times for the selected
{guilabel}`Company`. To modify or add to this list, go to {menuselection}`Payroll app -->
Configuration --> Working Times`, and either {guilabel}`Create` a new working time, or click on
an existing working time, then edit it by clicking {guilabel}`Edit`.
:::

- {guilabel}`Yearly Cost (Real)`: this field automatically updates after the {guilabel}`Schedule
  Pay` and {guilabel}`Wage` fields are entered. This amount is the total yearly cost for the
  employer. This field can be modified. However, if this is modified, the {guilabel}`Wage` field
  updates, accordingly. Ensure both the {guilabel}`Wage` and {guilabel}`Yearly Cost (Real)` are
  correct if this field is modified.

- {guilabel}`Monthly Cost (Real)`: this field automatically updates after the {guilabel}`Schedule
  Pay` and {guilabel}`Wage` fields are entered. This amount is the total monthly cost for the
  employer. This field **cannot** be modified, and is calculated based on the {guilabel}`Yearly
  Cost (Real)`.

  ```{image} contracts/salary-info.png
  :align: center
  :alt: Optional tabs for a new contract.
  ```

## Contract Details tab

The {guilabel}`Contract Details` tab allows for the addition and editing of a contract, along with
specifying which template to use when a new contract is created. These fields **must** be populated
in order to create a new contract.

:::{important}
To access the various contract template fields in the {guilabel}`Contract Details` tab, the
*Salary Configurator* (`hr_contract_salary`) module **must** be {ref}`installed
<general/install>`.

When the *Salary Configurator* module is installed, the *Salary Configurator - Holidays* and
*Salary Configurator - Payroll* modules install, as well.

Once the modules are installed, the database reverts to the main dashboard.
:::

- {guilabel}`Contract Template`: select a pre-existing contract template from the drop-down menu.
  Contract templates are typically created through the configuration menu, and stored in the
  *Documents* application.

### Sign section

- {guilabel}`HR Responsible`: select the person who is responsible for validating the contract from
  the drop-down menu. This field is required.
- {guilabel}`New Contract Document Template`: select a contract from the drop-down menu to be
  modified for this new employee contract. These documents are stored in the *Sign* application.
- {guilabel}`Contract Update Document Template`: select a contract from the drop-down menu, if the
  employee has an existing contract that requires updating. These documents are stored in the *Sign*
  application.

:::{important}
The {guilabel}`HR Responsible`, {guilabel}`New Contract Document Template`, and
{guilabel}`Contract Update Document Template` fields are only visible if the *Sign* application
is installed, along with the `hr_contract_salary` and `hr_contract_salary_payroll` {doc}`modules
<../../general/apps_modules>`. The *Sign* application is where the contract templates are stored.
This application is required for an employee to sign any contract.
:::

### Accounting section

- {guilabel}`Analytic Account`: select the account the contract affects from the drop-down menu. It
  is recommended to check with the accounting department to ensure the correct account is selected.

### Part Time section

- {guilabel}`Part Time`: tick this box if the employee is working part-time. When active, additional
  fields appear:

  - {guilabel}`% (Percentage)`: enter the percent of time the employee works as compared to a
    full-time employee.

  - {guilabel}`Standard Calendar`: select the working hours that a typical full-time worker uses
    from the drop-down menu.

  - {guilabel}`Part Time Work Entry Type`: select the work entry type that generates the balance of
    a full-time working schedule.

    ```{eval-rst}
    .. example::
       If a full-time employee works 40 hours a week, and the employee works 20, enter `50` in the
       :guilabel:`% (Percentage)` field (50% of 40 hours = 20 hours). The employee generates twenty
       (20) hours of work entries under the work entry type `part-time`, and another twenty (20)
       hours of work entries under the work entry type `generic time off`, for a total of forty (40)
       hours worth of work entries.
    ```

### Notes section

- {guilabel}`Notes`: a text field where any notes for the employee contract are entered for future
  reference.

```{image} contracts/contract-details.png
:align: center
:alt: Contract details in optional tabs for a new contract.
```

- {guilabel}`Analytic Account`: this field allows a link between the contract and a specific
  analytic account for accounting purposes.
- {guilabel}`Contract Template`: select a pre-existing contract template from the drop-down menu.
  Contract templates are typically created through the *Recruitment* application.
- {guilabel}`New Contract Document Template`: select a contract from the drop-down menu to be
  modified for this new employee contract.
- {guilabel}`Contract Update Document Template`: select a contract from the drop-down menu, if the
  employee has an existing contract that requires updating.
- {guilabel}`Notes`: the notes field is a text field where any notes for the employee contract can
  be entered for future reference.

### Modify a contract template

Click the {icon}`fa-external-link` {guilabel}`(external Link)` icon at the end of either the
{guilabel}`New Contract Document Template` or {guilabel}`Contract Update Document Template` to open
the corresponding contract template, and proceed to make any desired changes.

Click the {guilabel}`Upload your file` button next to the corresponding document, navigate to the
file, then click {guilabel}`Open` to select the document and add it to the tab.

#### Modifying contract templates

Contracts templates can be modified at any point when changes are needed.

- {guilabel}`Tags`: select any tags associated with the contract.

- {guilabel}`Signed Document Workspace`: this is where the signatures are stored. Choose a
  pre-configured workspace, or create a new one. To create a new {guilabel}`Signed Document
  Workspace`, type in the name of the workspace, then click either {guilabel}`Create` to add the new
  workspace, or {guilabel}`Create and Edit` to add the workspace and modify the workspace details.

- {guilabel}`Signed Document Tags`: select or create any tags that are only associated with the
  signed contract, as opposed to the original unsigned contract.

- {guilabel}`Redirect Link`: enter a redirect link for the employee to access the contract. A
  redirect link takes the user from one URL to another. In this case, it takes them to the
  newly-updated contract specifically written for them.

- {guilabel}`Who can Sign`: select either {guilabel}`All Users` or {guilabel}`On Invitation`.

  - {guilabel}`All Users`: any user in the organization can sign the contract.
  - {guilabel}`On Invitation`: only users selected in this field can sign the contract.

- {guilabel}`Invited Users`: select the person (or people) that can sign the document.

- {guilabel}`Document`: the attached document can be replaced by clicking the {icon}`fa-pencil`
  {guilabel}`(pencil)` icon. A pop-up window appears, so another document can be selected for
  upload. The file **must** be a PDF. To remove the document, click the {icon}`fa-trash-o`
  {guilabel}`(trash can)` icon.

Once the edits are complete, click the {guilabel}`Save` button. All the information for the selected
contract template populates the fields in the {guilabel}`Salary Information` tab. Any additional
tabs, such as {guilabel}`Personal Documents`, appears if applicable.

## Salary information

```{image} contracts/salary-info.png
:align: center
:alt: Optional tabs for a new contract.
```

This section is where the specific salary details are defined. This section is country-specific, so
these fields vary, depending on where the company is located.

Enter the amount in the various fields, or tick a checkbox to apply a benefit. Some options that can
be entered here include {guilabel}`Group Insurance Sacrifice Rate` and {guilabel}`Canteen Cost`, for
example.

Some fields may be automatically filled in as other fields are entered. For example, the
{guilabel}`Yearly Cost (Real)` and {guilabel}`Monthly Cost (Real)` updates once the {guilabel}`Wage`
is populated.

## Personal documents

This tab **only** appears after an {guilabel}`Employee` is selected, and houses any documents that
are linked to the employee on their employee record. Documents cannot be added to this tab, this tab
**only** shows documents that are already uploaded and associated with the employee.

The available documents in this tab can be downloaded. Click the {icon}`fa-download`
{guilabel}`(download)` icon next to the document to download it.

## Save and send the contract

Once a contract has been created and/or modified, save the contract by clicking the {guilabel}`Save`
button. Next, the contract must be sent to the employee to be signed.

Click on one of the following buttons to send the contract to the employee:

```{image} contracts/send-contract.png
:align: center
:alt: Send the contract to the employee via one of the buttons.
```

- {guilabel}`Generate Simulation Link`: this option is **only** for Belgian companies. Clicking this
  opens a pop-up window that contains the basic information from the contract, as well as a link for
  the contract when using the salary configurator. Click {guilabel}`Send` to send an email to the
  employee, so they can sign the contract.

At the bottom of the pop-up form is a {guilabel}`Link Expiration Date`. This is the timeframe that
the contract offer is valid for. By default, this field is pre-populated with `30 days`, but it can
be modified.

> :::{note}
> In order to send a contract using the {guilabel}`Generate Simulation Link`, there **must** be a
> signature field in the contract PDF being sent to the employee, so they can sign it.
> :::

- {guilabel}`Signature Request`: clicking this reveals a pop-up window, where an email can be typed
  to the employee. Select the document (such as a contract, NDA, or Homeworking Policy) from the
  drop-down menu, and fill out the email section. Click {guilabel}`Send` when the email is ready to
  be sent.

:::{note}
To send a contract using the {guilabel}`Generate Simulation Link`, there **must** be a signature
field in the contract PDF being sent to the employee, so they can sign it.
:::

## Salary attachments

Any automatic deductions or allocations for an employee, such as child support payments and wage
garnishments, are referred to as a *salary attachment*. This section is where all of these
deductions or allocations are set.

To add a new deduction, first navigate to {menuselection}`Payroll app --> Contracts --> Salary
Attachments`. Next, click {guilabel}`Create`, and a new salary attachment form loads.

```{image} contracts/garnishment.png
:align: center
:alt: The salary attachment form with everything filled in for Ronnie Hart's child
:  support.
```

Fill out the following fields on the form:

- {guilabel}`Employee`: using the drop-down menu, select the employee the salary attachment applies
  to.

- {guilabel}`Description`: enter a short description for the salary attachment, such as `Child
  Support` or `529 Contribution`.

- {guilabel}`Type`: using the drop-down menu, select the type of salary attachment being created.
  Choose from:

  - {guilabel}`Attachment of Salary`: any payments taken out towards something that is *not* child
    support. Typically any garnishments, such as lawsuit payments, payments toward taxes owed, etc.
  - {guilabel}`Assignment of Salary`: any deduction that is not required, but voluntary, such as a
    pre-tax allocation to a college savings account.
  - {guilabel}`Child Support`: any payments taken out specifically for child support.

- {guilabel}`Start Date`: the date the salary attachment starts. Choose a date by clicking on the
  drop-down menu, navigating to the correct month and year by using the {icon}`fa-chevron-left`
  {icon}`fa-chevron-right` {guilabel}`(arrow)` icons, then clicking on the desired date. This field
  is **required**.

- {guilabel}`Estimated End Date`: this field automatically populates after both the
  {guilabel}`Monthly Amount` and {guilabel}`Total Amount` fields are populated. This field is
  **not** modifiable.

- {guilabel}`Document`: attach any documents relevant to the salary attachment. Click the
  {guilabel}`Upload Your File` button, navigate to the desired document in the file explorer, then
  click {guilabel}`Open` to select the document, and attach it to the form. To change the attached
  document, click the {icon}`fa-pencil` {guilabel}`(pencil)` icon, and select a different document.
  To remove a document, click the {icon}`fa-trash-o` {guilabel}`(trash can)` icon.

- {guilabel}`Monthly Amount`: enter the amount to be taken out of the employee's paycheck every
  month for this specific salary attachment.

- {guilabel}`Total Amount`: enter the total amount that the employee pays for the salary attachment
  to be completed.