About Contracts

Discover everything about contracts

This article explains the newly updated version of Factorial's Contracts. If you're still using the old version, check out the article About Contracts v1


If you are using Factorial in US English, note that the term Agreements is used in place of contracts. The functionality remains the same.



Where to find Agreements

  1. Head to Employees, located on the sidebar menu
  2. Select any employee
  3. Go to the Agreements section 


Ongoing contract conditions

💡 Accessing your ongoing conditions with the Factorial Mobile App 
You can view all the information about your current conditions directly from the Factorial mobile app. You will be able to see all the information listed below. 



Agreement information

  • Start date: the date when the company and the employee start a relationship.
  • End date: the date when the company and the employee end the relationship.
  • Agreement type
  • Trial period: choose if your employee has a trial period or not.


Job position

  • Current position: the name of the employee's job. e.g. Instructional Designer.
  • Preferred job position
  • Job description
  • Role description



  • Gross salary: introduce the employee's base salary based on the desired compensation type.
  • Payroll policy
  • Additional compensations: add variables, bonus and benefits. These will be shown in the Payroll app.

💡 Providing the salary information offers you the following advantages:

- Financial costs:

Gain a comprehensive overview of your workforce's growth, both collectively and across individual legal entities. Monitor monthly and year-to-date wage expenditures, and visualize employee costs based on cost center allocation or managerial responsibilities. This valuable insight can be accessed through the Finance department.

- Payroll calculation and payments Attain a holistic understanding of the payroll process, enabling you to effectively manage allowances, payments, and overall payroll outcomes. This inclusive perspective empowers you to oversee the entire payroll cycle.

- Payroll incidences

Salary ranges: a job catalog that provides comprehensive salary ranges, facilitating equitable compensation practices within your organization.

Reports: track changes in payroll, enabling you to gain meaningful insights and make informed decisions.




  • Working day type: full-time or part-time.
  • Working hours: number of hours that this employee works.
  • Workable days: days when employees are expected to work as per their employment agreement or company policy.

💡 Completing working hours and workable days help to manage:

  • Time tracking
  • Time off
  • Overtime compensation with time off
  • Time planning
  • Payroll calculation and payments
  • Payroll incidences
  • Reports
  • If the employee owes hours to the company, or if the company owes hours to the employee


  • Professional category
  • Contribution group
  • Education level
  • Remote work

Other information

Extra information for the contract based on the employee's country.

👀 You can see this section only if you have installed the Payroll Management App.

  • Contract observations
  • Contract custom fields (if any)


Agreements timeline

From your employee’s agreements section, you will be able to see the history of the contract conditions, update conditions or fix wrong information.

  1. Click on History


Permissions in Contracts

❗Set specific permissions to edit, promote, and delete contracts.

  • Edit Contracts (updates and fixes): update and fix contracts. Users with this permission can modify contract details, correct errors or make any necessary adjustments. Existing users with the "edit contract" permission will also automatically receive this permission.
  • Promote: manage promotions within contracts. Users with this permission can initiate and manage employee promotions. HR teams can choose to grant this permission to managers or other designated users responsible for managing promotions.
  • Delete: remove contracts from the system when necessary. This permission should be granted with caution and only to users who need the ability to delete contracts. Use caution when assigning this permission to avoid accidental deletions.


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