Setup Considerations: Employee Contracts

You can use this topic to help make decisions when planning your configuration and use of employee contracts. It explains:

Why to set them up.

How they fit into the rest of Workday.

Downstream impacts and cross-product interactions.

Security requirements and business process configurations.

Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is

Employee contracts in Workday are a highly configurable way of managing details for fixed-term and open-ended employee contracts.

Business Benefits

You can easily maintain contracts for employees, generate documents for contracts, and report on contract details, enabling you to comply with regulatory requirements. You can also configure employee contracts to increase efficiency and reduce manual effort by:

Configuring warnings to limit fixed-term contract renewals and duration for contracts.

Populating a contract review date for fixed-term contracts.

Populating a contract status in business processes.

Use Cases

You can use employee contracts to:

Record and report on the expected duration of an employee's employment.

Record additional data for your requirements through creating custom fields.

Generate documents for contracts that employees can view on their worker profile.

Review fixed-term contracts and renew or end the contract as required.

Schedule a contract review date.

Create rules for fixed-term contract renewals and maximum combined contract duration.

Questions to Consider

Questions	Considerations
Do you review and renew fixed-term employee contracts?	You can use the Review Employee Contracts business process to review and renew or end their contract. The Review Employee Contracts business process only initiates for employees who have a review date on their latest active employee contract. Workday doesn't require you to review and renew fixed-term contracts.
What are your criteria for fixed-term employee contracts rules?	You can set up rules to define a maximum combined contract duration, maximum number of renewals, and populate a contract review date for employees. If you set a maximum combined contract duration, Workday displays a warning message when you add a contract duration that exceeds the maximum. Workday doesn't require you to define rules for fixed-term contract reviews and renewals.
What actions do you want to take during the contract review?	You can: Add an open-ended contract. Add a fixed-term contract. Change the employee's job to update job and contract details. Extend the contract. End the contract by terminating the employee.
Do you need to create contracts for contingent workers?	Employee contracts are only available to employees. You can configure the Contract Contingent Workers business process to contract contingent workers.
What requirements do you have for contract IDs?	You can configure Workday to calculate employee contract IDs for new contracts. An employee contract ID doesn't change due to internal transfers or contract conversions. When you configure employee contract ID calculations, Workday: Generates a new contract ID for contracts created with the Hire business process or related web service. Copies the contract ID from the previous contract for contracts created outside of the Hire business process, but within the same employment. Example: Change Jobs . Copying contract IDs ensures continuity in contract IDs when producing regulatory reports, such as Déclaration Socials Nominative (DSN) reporting.

Recommendations

Workday recommends that you:

Configure the Maintain Employee Contract
step on available business processes to streamline updates.

Configure the Maintain Employee Contract
step on the Termination
business process to end contracts and prevent overlapping contracts for rehires.

Add 2 Maintain Employee Contract
steps on the Change Job
business process. The first step ends the existing employee contract and the second step adds a new employee contract.

Configure country-specific localized fields in the Staffing area on the

Maintain Localization Settings

task to enable employee contract fields and components.

Ensure that the contract is fixed-term before using contract reviews.

Select days for a more accurate way to define a maximum combined contract duration. Example: Workday calculates 52 weeks as 364 days.

Test eligibility rules for employee contract reviews and renewals with the

Test Global Staffing Eligibility Rule

report.

Requirements

To enable employee contract reviews and renewals, configure the Employee Contract: Review
localized field.

Limitations

You can:

Add contract review dates only for employees.

Review each fixed-term contract or contract extension only once.

Only select a contract review date on the Maintain Employee Contracts
web service. The web service doesn't currently support populating review dates from contract rules.

Configure only 1 active contract for a job at a time, based on the contract start and end date.

Tenant Setup

In the

Maintain Localization Settings

task, you can configure Workday to generate a contract ID for new contracts based on DSN requirements.

In the

Edit Tenant Setup – HCM

task, you can:

Configure a sequence generator for employee contract IDs.

Automatically update the

End Employment Date

field for fixed-term employees whose

Contract End Date

changes.

Security

Domains	Considerations
Employment Agreement: Employee Contracts in the Pre-Hire Process and Recruiting functional areas.	Users secured to this domain can view or modify employee contract data for pre-hires during the Employment Agreement business process.
Staffing Actions: Job Requisition Employee Contract Details in the Staffing functional area.	Users secured to this domain can view or modify employee contract details on job requisitions.
Set Up: Employee Contracts in the Staffing functional area.	Users secured to this domain can configure employee contract reasons and statuses.
Set Up: Employee Contract Rules in the Staffing functional area.	Users secured to this domain can configure employee contract rules.
Worker Data: Employee Contracts in the Staffing functional area.	Users secured to this domain can view or modify employee contract data for employees.

Business Processes

Business Processes	Considerations
Employee Contract	Enables you to add, edit, and extend employee contracts.
Edit Employee Contract Additional Data Event	Enables you to add custom fields for employee contracts.
Review Employee Contracts	Enables you to review and renew fixed-term employee contracts.
Termination	You can configure the Terminate from Review Employee Contract initiating action to terminate an employee during a contract review.

Reporting

Reports	Considerations
Employee Contracts	Displays all employee contract details for an employee.
Employees with Contracts	Displays employees with contracts and details such as location, job title, and contract type.
View Document Template Details	Displays document templates for employee contract created with Workday Docs.

Integrations

You can build inbound EIB integrations based on these web services to upload custom fields for employee contracts, maintain employee contracts, and upload contract rules:

Edit Employee Contract Additional Data

Maintain Employee Contracts

Put Global Staffing Eligibility Rule

Put Maintain Employee Contract Rules for Country

You can use these web services to retrieve employee contract rules:

Get Global Staffing Eligibility Rules

Get Maintain Employee Contract Rules for Country

Connections and Touchpoints

Workday uses employee contracts in Payroll (FRA) for payroll calculations and DSN reporting. For DSN reporting requirements:

Workers must have a valid contract during their entire employment.

The

Contract ID

for the contract must remain the same from hire to termination, even if the contract information changes.

Employee contracts interacts with Workday Docs to create document templates for contract documents.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Concept: HCM Mapping for Payroll (FRA)

Concept: Contract Setup for DSN Reporting (FRA)

Concept: Workday Docs

Contract Contingent Workers

Steps: Set Up Workday Docs

Reference: DSN Data Requirements (FRA)

https://community.workday.com/node/554767