Labor Contracts

What is it and what is it for?

The Labor Contract removes the need to enter an employee's salary and benefits directly on every payroll run: you define them once on the contract and AdmCloud reuses them on each run while the contract stays active. Every line on the Concepts tab corresponds to a concept from your Benefit and Discount Concepts catalog (salary, bonuses, insurance, income tax...), with its quantity, unit and amount.

If your company has many employees sharing the same concept setup, you can avoid repeating it on every contract with a Labor Contract Group: select the group on the contract and its concepts are automatically combined with the individual contract's own concepts when payroll is generated.

If your company has Payroll Billing active (for example, if you provide payroll outsourcing services to a client), the contract lets you set the Customer being billed for the service, and each concept line can carry its own percentage or flat fee to charge them.

How to use it

1. Open the Labor Contracts list. The header shows your total, used and available payroll licenses. The list has three tabs — Active, Terminated and All (includes voided) — and you can filter by date, employee, subsidiary, location, currency or payroll type.
2. Click New. If your company has subsidiaries enabled, the default one is suggested; fill it in along with the Employee, the Date, the Position, the Payroll Type, the Currency, the Location, the Country and the Labor Contract Type (this last field is hidden automatically if you only have one type configured).
3. If you're going to use a Labor Contract Group, select it in the corresponding field; the contract's currency is filled in automatically from the chosen group.
4. On the Concepts tab, add at least one line: pick the benefit or discount concept and, if its calculation method is Fixed, enter the Quantity, the Unit and the Amount. If the payroll type is biweekly, mark whether the concept applies to Fortnight 1, Fortnight 2, or both.
5. If your company bills the payroll service, set the Customer and, per concept line, the % to Bill to Customer, the Flat Fee and/or the Fee Percent.
6. If you're going to generate the electronic bank payment file for this employee, fill in the banking details (account, bank, account type and payment account) at the bottom of the form.
7. Attach any supporting files you need (for example, the signed contract) and save.
8. From the contract's Details screen you can edit it, duplicate it (to create a similar one without starting from scratch), delete it, void it, print it with a template and review the payrolls already generated from it. In the Dominican Republic, you can also open the Vacations Summary by Period, which shows the vacation days earned, taken and available for each period of the contract.
9. To change several active contracts at once (add or update a concept, or change department or location in bulk), use the Massive Contract Update screen (if your provider has it enabled): filter the contracts to affect and run the action; the process runs in the background and you can track it under Processes.

Key fields

Validations when saving

• Employee, Date, Position, Payroll Type, Currency, Location, Country and Contract Type are required; the employee, position, currency, location and country cannot be voided.
• The document must have at least one valid concept line; it cannot be saved blank.
• A concept line's percentage to bill or fee percentage cannot be negative.
• If you set a Contract Group, its subsidiary, currency and payroll type must exactly match the contract's.
• If you set a Termination Date you must also set a Termination Reason (and vice versa), and the Termination Date cannot be earlier than the contract's Date.
• Filling in the bank account number makes the account currency, bank, account type and payment account required; the payment account's subsidiary must match the contract's.
• Once saved, the contract's Employee and Subsidiary cannot be changed.
• The Currency and Payroll Type cannot be changed once the contract already has payroll runs generated from it.
• The start Date cannot be changed while the contract has registered vacation time-off requests (their period depends on that date).
• A Base contract type cannot be changed to another type once transactions (for example payroll runs or concept registrations) are already linked to the contract.
• If your edition doesn't allow contracts in a currency different from the company's, the contract's currency must match the company's currency.
• Creating a new contract cannot exceed the number of Employee Payroll Licenses included in your plan.
• A contract cannot be deleted while it has linked documents (payroll runs, concept registrations, sales transactions billed to the employee, or batch hour entries); unlink or delete those documents first.

Availability

• This feature requires the Premium Plus Payroll plan or higher, or the Enterprise plan with the Payroll module active; if it isn't available, the screen shows the "not available on this edition" message.
• Requires the Payroll "Labor Contracts" permission on your user group (with add, edit, delete or void level depending on the action).
• The Subsidiary field is only required if your company has subsidiaries enabled.
• The Contract Group field only appears if your company has Labor Contract Groups active.
• The billing-related fields and columns (Customer, Don't Consider for Quotations, % to Bill to Customer, Flat Fee, Fee Percent) only appear with Payroll Billing active, in which case Customer becomes required.
• The Massive Contract Update screen requires, in addition to the Labor Contracts permission, the extra Payroll "Labor Contracts Batch Update" permission, and it must be enabled by your provider.
• The Vacations Summary by Period is only available for companies configured in the Dominican Republic, since it's based on the vacation-day accrual calculation under Dominican labor law.
• If your company uses custom fields for payroll transactions, only the ones marked as visible on Labor Contracts appear on this screen.

Tips and common mistakes