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How do the Contract versions work? 📝

When you join an employee in Factorial, you must fill in some basic information, such as personal profile, contract, time-off, etc. 

When you fill in the Contract information, you will see that you will have different sections. 

1. Basic Information 📝

  • Start date: The date on which the employee starts working for the company 
  • End date: In the case of a temporary contract, you must add the date of expiry of the contract, if it is indefinite, you can leave it without an end date.
  • Title: The name of the employee's job. e.g. Office Manager. 

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In case the employee has an end date because his contract is a temporary one, you must create a new version of the initial contract. 

Factorial offers a feature to create versions and modifications of the contract. In the contract section, each employee has a history of the different versions of his contract since he began his work relationship with the company. These versions represent changes or modifications of the same working relationship. 

Each employee has a single start date that represents the date they were hired. Each of the contract versions that you create for this employee has its own effective date that represents the date from which the changes to the version began to apply. Each time you create a contract version, you can indicate from which date you want it to be effective but the start date will always be the same. 

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In this sample, we have created a new Contract version, extending the Contract that ended on 09/14/2020 to 01/14/2021. You can see that the start date is still the date of the initial Contract, we have simply changed the end date. 

The date of the new version will always be available, in the previous image you can see that the date of the creation of the new version will be recorded in the document icon, in this case on April 15, 2020. Therefore, you will always have available the date in which the new version of the contract was created. 


2. Work schedule 🗓️

In the work schedule, you must specify the number of days and hours this employee works. 

  • Hours: Number of hours according to the unit. 
  • Unit: To calculate the hours worked, Day/Week.
  • Days a week: From Monday to Sunday, you can mark the days the employee is working. 

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Filling in these fields will be very useful to calculate the expected hours in the employee's Time Tracking System. If you don't know how Factorial calculates the estimated hours, you can take a look at this article. Also, it will allow you to create reports as an administrator, through the reports feature.

 

3. Gross salary 💸

In this section, you can introduce the employee's base salary, according to the type of compensation you would like. 

  • Type: You can specify the type of compensation you want, depending on how it is handled in your company. Annual, weekly, monthly, hourly.
  • Amount: You can introduce the salary amount in a text-box. 

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Introducing the salary of your employees will make it easier to have the information gathered when you need to extract a report about your employees' information or want to make customized reports. It will also be useful in case you use the hand-off feature since it will collect the salary amount of the employee once the changes have been made in the contract version. 

 

4. Variable compensation 💰

When compensating your employees one of the best ways you can use is variable compensation. The key to achieving greater productivity and performance is to keep your employees motivated, for that reason through the Contracts feature you will have the option to add variable compensation to your employees. 

You will have the option to create a variable employee compensation, and add the following fields: 

  • Recurrence: Every few months the variable compensation will be made to the employee. 
  • Amount: The amount to be paid by the company to the employee. 
  • Description: You will be able to put a brief description of the variable compensation in a text-box. 

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5. Documents 📁

Through this section, you will be able to upload the employee's Contract in pdf format, and once you upload it, it will go directly to the employee's Contract folder, it's that easy! 

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