Employment

Employment Contract
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Employment Contract is a standalone tab within the "HR" section in the "Employees" module. As this is a very important tab with a relatively wide range of possible ways to fill it in, it has been given its own dedicated chapter.
As the name suggests, this is where employment contracts and a number of related details are configured.

The top toolbar of the form contains a number of buttons whose functions are described in the dedicated chapter "Program Controls".

Press the "New" button or the keyboard shortcut Alt+N to open the form for a new record. Filling it in is done in several steps:

Main Panel
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The top toolbar of the form contains a number of buttons whose functions are described in the dedicated chapter "Program Controls".

Employment Contract Settings

When creating a new employment contract record, this field is set to "Unlimited – Unlimited" by default. If any change occurs (e.g. the employment contract changes from regular to irregular, etc.), use the "Employment Contract" button to open a dialog and create a new configuration that will be valid from the date you specify.

After saving the specified date, the field will change to, for example, 14.05.2010 – Unlimited. Using the drop-down list, you can see that the previous configuration was automatically ended on the day preceding the new configuration, e.g. Unlimited – 13.5.2010.

If you make changes in this tab and save them under a new configuration, the new data will only be displayed in that new configuration. By selecting the original configuration, you will be able to view the original, unchanged data.

If you wish to cancel the new configuration, use the "Delete Configuration" button. This will remove the date restriction on the original person's configuration and simultaneously discard all changes made in the upper tabs.

Tab "Start"
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Employment Contract Type

Use the drop-down list to select the type of employment contract from the existing list. This list can be opened using the F2 key; while some items may include informational notes, the list itself cannot be extended. Employment contract types are defined by law. Tax deductions and, where applicable, health and social insurance contributions are calculated based on the selected type. Should legislation change, updates will of course be made in our application as well. The following options are available:

· 1-STANDARD – Standard employment contract

· 2-DPP – Agreement to complete a job (Dohoda o provedení práce)

· 3-DPČ – Agreement to perform work activity (Dohoda o provedení činnosti)

· 4-PARTNERS, EXEC, COOP.MEM. – Partners, executives, and cooperative members who are not in an employment relationship but perform work for which they are remunerated, and who have not reached a countable income in the calendar month,

· 5-STATUTORY BODY – A member of a statutory body who is not in an employment relationship.

· 6-REM. NON-RES. OUTSIDE EU – A member of a statutory body who is not in an employment relationship and is not a tax resident in the European Union.

· VOLUNTARY WORKER – A voluntary care worker who has not reached a countable income in the calendar month.

· IRREGULAR ASSISTANCE – Irregular assistance

· PRACTICAL TRAINING – A pupil or student whose only income from dependent activity and executive benefits comes from practical training

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The option 6-REM. NON-RES. OUTSIDE EU exists for a different method of calculating deductions: social and health insurance is calculated and paid in the Czech Republic, withholding tax is applied on the super-gross wage.

Primary

If the employee has a primary employment contract, check Primary.

Minor Employment

If the employee has a minor employment contract, check Minor Employment.

Contract Start Date

Enter the date from which the employee's employment contract is effective. For new employees, this date may be the same as the "Active from:" field below. If you are transitioning to this system while already having employees with contracts from an earlier date, you can enter the date from which they have been employed with you in this field. This is an informational field. You can enter the date manually in the format DD.MM.YYYY. Alternatively, you can use the "calendar" button, the use of which is described in more detail in the "Program Controls" chapter => "Meaning of Buttons Used".

Active From

This date affects payroll calculation. Enter the date from which you want to start calculating the employee's salary. You can enter it manually in the format DD.MM.YYYY. Alternatively, you can use the "calendar" button, the use of which is described in more detail in the "Program Controls" chapter => "Meaning of Buttons Used".

Labour Law Average [CZK/hour]

Enter the labour law average value in CZK per hour.

ELDP Code

The pension insurance record sheet code – entered as a three-digit value. It is planned that this code will be printed on record sheets automatically.

Pay Grade

If you use pay grades, you can fill in this field. This is an informational field.

Annual Leave Days

Enter the number of days of annual leave entitlement per year.

Internal Document Type for Gross Wage

Use the drop-down list to select from the list of internal document types the document type you want to use for posting the gross wage.

Internal Document Type for Sick Leave Wage Compensation

Use the drop-down list to select from the list of internal document types the document type you want to use for posting sick leave wage compensation.

Internal Document Type for Travel Allowance Within Limit

Use the drop-down list to select from the list of internal document types the document type you want to use for posting travel allowances.

Tab "Contract"
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Work Schedule

Specify the employee's work schedule. Two fixed options are available.

· Regular
If the employee has a regular employment contract, you must complete the additional fields in this tab. The data entered here will then be used to populate the shifts in the "Shifts" tab under "HR".

· Irregular
If the employee has an irregular employment contract, you do not need to fill in the additional fields in this tab. However, you will then need to enter shifts manually in the "Shifts" tab under "HR".

Contract Hours [Daily]

For a regular work schedule, you must specify how many hours the employee regularly works per day.

Contract Days [Weekly]

For a regular work schedule, you must specify how many days per week the employee regularly works.

Start of Working Hours

For a regular work schedule, you must also specify the start of working hours. If you do not fill in the start time, the system will assume the employee starts work at 00:00. The data in the "Shifts" tab will be populated accordingly. If you do not manually correct this data, night shift supplements will be automatically calculated for the employee.

Calculate Holiday Compensation from Average

Check this box if you want holiday compensation to be calculated from the average.

Contract Hours [Weekly]

For a regular employment contract, this field is automatically populated with the weekly contracted hours (daily hours × days per week).

Weekly Working Hours

Use the drop-down list to select the type of operation the employment contract relates to:

· Single-shift operation (40 hours)

· Underground workers (37.5 hours)

· Three-shift operation (37.5 hours)

· Two-shift operation (38.75 hours)

Working Days

Check the applicable working days.

Tab "Termination"
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Contract End Date

The employment contract end date affects payroll calculation. Enter the date up to which you want to calculate the employee's salary. You can enter it manually in the format DD.MM.YYYY or using the "calendar" button, the use of which is described in more detail in the "Program Controls" chapter => "Meaning of Buttons Used".

Active Until

This date does not affect payroll calculation. If this date is not filled in, the employee will be listed as active, but it has no effect on whether payroll is calculated or suspended. This is useful, for example, for an employee who has retired but to whom you still want to pay an annual bonus at the end of the year, or who is yet to receive severance pay. There may also be a situation where an employee whose contract has been terminated falls ill and you are obligated to pay them sick pay. You can enter the date manually in the format DD.MM.YYYY or using the "calendar" button, the use of which is described in more detail in the "Program Controls" chapter => "Meaning of Buttons Used".

Termination Method

For your reference, you can specify the method of termination of the employment contract (e.g. by mutual agreement, by notice, by immediate termination, by termination during the probationary period, by expiry of the agreed term, by decision in the case of foreign nationals, by death of the employee).

Reason for Termination

For your reference, you can specify the reason for termination of the employment contract.

Organisation's Statement

This field can be used for any additional statements from the organisation regarding the employee.