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Administrator Guide
Last Updated: 2025-03-14
Setup Considerations: Employment Agreements

Setup Considerations: Employment Agreements

You can use this topic to help make decisions when planning your configuration and use of employment agreements. 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

In Workday, you can use employment agreements to outline and negotiate conditions of employment for internal and external candidates.

Business Benefits

You can easily track, report, and negotiate employment agreement details for candidates. Employment agreement details then populate during the
Hire
,
Change Job
, and
Additional Job
business processes. You can also autocomplete approved employment agreement data from job applications in relevant business processes.

Use Cases

You can use the employment agreement functionality to:
  • Record and report on the expected duration of the candidate's contract.
  • Record and report on conditions of the employment such as compensation, notice periods, probation periods, and collective agreements.
  • Renegotiate the conditions of employment and track the renegotiation changes.
  • Generate documents for the employment agreement.
If you use employment agreements as part of the Recruiting workflow, you can also:
  • Complete employment agreements in bulk with Worksheets during high-volume times of recruitment.
  • Autocomplete approved employment agreement data in other business processes.

Questions to Consider

Questions
Considerations
How can you complete employment agreement tasks in a guided view?
You can configure the
Employment Agreement
consolidated template to complete tasks in a guided view instead of completing them separately.
When you consolidate the business process template, you must add validation rules for the subprocesses on the
Initiation
step of the
Employment Agreement
business process. You also can't add condition rules on any of the business process steps.
As a Recruiting customer, can you complete employment agreements from job applications in bulk?
You can configure task consolidation to complete employment agreement tasks in bulk using Worksheets by generating a workbook, enabling you to manage high-volume recruitment more flexibly.
You can consolidate a maximum of 100 employment agreement events in a workbook.
How can you configure additional fields required in certain countries?
You can configure localized fields on the
Maintain Localization Settings
task for subprocesses of the
Employment Agreement
business process to:
  • Track additional fields in certain countries to comply with local regulatory requirements.
  • Enable rules for components such as notice periods and probation periods to populate data.
How can you populate employment agreement data?
You populate data in employment agreements by configuring eligibility rules for compensation, notice periods, and probation periods. Populating data can reduce manual effort and increase accuracy.
Compensation data can populate differently from notice periods and probation periods. We recommend you review how compensation data populates in employment agreements.
You can configure condition rules and data fields on the
Maintain Staffing Field Defaults
task to populate these fields on an employment agreement during recruiting:
  • Hire Date
  • Contract End Date
As a Recruiting customer, how can you autocomplete employment agreements?
You can configure the relevant business process definition to autocomplete approved employment agreement data from job applications on these business processes:
  • Add Additional Job
  • Change Job
  • Hire
Do you want to send other documents to candidates together with the employment agreement?
You can configure the
Add Documents
step to the Offer business process. This action step enables you to attach documents before sending an employment agreements. Example: Terms and Conditions.
Do you want to make corrections to an Employment Agreement after a candidate accepts?
If you correct details on an Employment Agreement after a candidate has accepted, you can regenerate a new Employment Agreement document using the:
  • Regenerate Employment Agreement Documents
    task.
  • Related actions menu of a completed Employment Agreement event.

Recommendations

To populate data in the most efficient order, Workday recommends that you configure the steps on the
Employment Agreement
business process definition and consolidated template in this order:
  • Initiate Pre-Hire Contract Details
  • Initiate Pre-Hire Collective Agreement Details
  • Initiate Pre-Hire Probation Period Details
  • Initiate Pre-Hire Notice Period Details
  • Propose Compensation Offer/Employment Agreement
  • Request Stock Grant Offer/Employment Agreement
  • Request One-Time Payment Offer/Employment Agreement
We also recommend that you complete these steps for employment agreements in this order.
When you configure the
Hire Employee
initiating action on the
Hire
business process, we recommend that you hire directly from the employment agreement. The employment agreement data then populates on the
Hire
business process.
To propose establishments in employment agreements, Workday recommends that you select the
Allow Establishment on Employment Agreement/Offer
check box on the
Configure Establishment by Country
task.
To keep data consistent, Workday recommends that you make any changes required to the employment agreement before initiating the
Hire
business process. If you change data during the
Hire
business process, these changes won't update the approved employment agreement.

Requirements

Employment agreements require a job requisition for the position and a pre-hire record.

Limitations

You can only consolidate review events in Worksheets for these subprocesses on the
Employment Agreement
business process:
  • Propose Compensation Offer/Employment Agreement
  • Request One-Time Payment Offer/Employment Agreement
  • Request Stock Grant Offer/Employment Agreement
You can't consolidate any other approval or review events for employment agreements.

Tenant Setup

No impact.

Security

Domains
Considerations
Pre-Hire Data: Employment Agreement
in the Pre-Hire Process and Recruiting functional area.
Users secured to this domain and its subdomains can view or modify these types of data:
  • Business Title
  • Collective Agreement
  • Employee Contract
  • End Date
  • Location
  • Notice Period
  • Probation Period
  • Scheduled Weekly Hours
  • Start Date
Add Compensation Plans
in the Core Compensation functional area.
Users secured to this domain and its subdomains can view or modify compensation plan data.
Compensation Change: Guidelines
in the Core Compensation functional area.
Users secured to this domain can view or modify compensation grade data, grade profile data, and step assignments.
Add Compensation Management Plans
in the Advanced Compensation functional area.
Users secured to this domain and its subdomains can view or modify bonuses, merit plans, and stock plans.

Business Processes

Configure these business processes and business process policies:
Business Processes
Considerations
Employment Agreement
Enables you to maintain employment agreements for candidates as a standalone business process if you're not using employment agreements as part of the Recruiting workflow.
Job Application
You can configure
Employment Agreement
as a subprocess of the
Job Application
business process to maintain employment agreements for candidates as part of the Recruiting workflow.
Pre-Hire Collective Agreement Details
Enables you to maintain collective agreement details for the
Initiate Pre-Hire Collective Agreement Details
step on the
Employment Agreement
business process.
Pre-Hire Contract Details
Enables you to maintain contract details for the
Initiate Pre-Hire Contract Details
step on the
Employment Agreement
business process.
Pre-Hire Notice Period Details
Enables you to maintain notice period details for the
Initiate Pre-Hire Notice Period Details
step on the
Employment Agreement
business process.
Pre-Hire Probation Period Details
Enables you to maintain probation period details for the
Initiate Pre-Hire Probation Period Details
step on the
Employment Agreement
business process.
Propose Compensation Offer/Employment Agreement
Enables you to maintain compensation details for the
Propose Compensation Offer/Employment Agreement
step on the
Employment Agreement
business process.
Request One-Time Payment Offer/Employment Agreement
Enables you to maintain one-time payment details for the
Request One-Time Payment Offer/Employment Agreement
step on the
Employment Agreement
business process.
Request Stock Grant Offer/Employment Agreement
Enables you to maintain stock grant details for the
Request Stock Grant Offer/Employment Agreement
step on the
Employment Agreement
business process.

Reporting

You can use the
Find Employment Agreements
report to display all employment agreements by supervisory organization.

Integrations

You can build an inbound EIB integration based on the
Employment Agreement
web service to upload employment agreement data from job applications in bulk.

Connections and Touchpoints

If you're using employment agreements as part of the Recruiting workflow, employment agreements interact with HCM Core and Compensation.
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.