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HR Operationsintermediate
Creating and Managing Employee Contracts
Contract Management5 steps
- 1
Navigate to Contracts
Access the contracts module from the main menu
Tips- Ensure employee exists before creating contract
- Check contract types are configured
- 2
Select Contract Type
Choose appropriate contract type for the employee
What to enter
Field Type Description Example Contract Type* select Type of employment contract Permanent Full-time / Contract / Internship Employee* select Select employee for contract John Doe (EMP001) Tips- Contract type determines benefits and policies
- Employee must be active in system
- 3
Set Contract Details
Configure contract terms and salary structure
What to enter
Field Type Description Example Start Date* date Contract effective start date 2024-01-15 End Date date Contract end date (leave blank for permanent) 2024-12-31 Basic Salary* number Monthly basic salary amount 50000 Overtime Allowed checkbox Whether overtime is applicable Yes/No Tips- Basic salary affects all allowance calculations
- Overtime settings impact payroll processing
- 4
Add Salary Components
Configure allowances and deductions
What to enter
Field Type Description Example Component Type* select Earning or Deduction component HRA / Medical / PF Calculation Type* select Fixed amount or percentage Fixed / Percentage Value* number Amount or percentage value 5000 or 10 Tips- Percentage components calculate based on basic salary
- Components can be added/modified later
- 5
Review and Activate
Verify contract details and activate
Watch out for- Active contracts cannot be deleted
- Changes require contract revision