How You Manage Contracts

You can associate a contract with an assignment and specify key information such as contract type, duration, and start and end dates.

You can extend a contract and manage other details, such as adding, deleting, or editing contract extensions using the Employment Contracts task under Quick Actions.

Note:

When you extend a contract, the Employment Contracts task updates the contract end date in the PER_CONTRACTS_F table. The task doesn't update the projected assignment end date in the work terms record.

Associate a Contract With an Assignment

You can associate a new contract with an assignment when doing any of these actions:

• Hire a person

• Change the legal employer

• Transfer a person globally

• Create a global temporary assignment

• Create a work relationship

Note:

You can create a contract only when you do any of these actions. There's no separate task available for creating a contract.

You can associate a new contract or an existing contract with an assignment under the same work relationship when doing any of these actions:

• Add an assignment to a work relationship

• Add a temporary assignment

Extend a Contract

You can extend a contract from the Employment Contracts page by specifying the contract end date or the contract duration. However, you can't extend a contract which doesn't have a contract end date.

• If you enter the contract end date, the application automatically calculates the duration.

• If you enter the contract duration, the application automatically calculates the contract end date. This is done by adding the duration to the previous contract end date.

Correct Contract Extension History

You can view the history of extensions made to a contract in the contract details. This table shows the fields in the contract extension history.

Contract Number	Extension Number	Initial Contract Start Date	Contract Start Date	Contract End Date	Contract Duration	Contract Type	Description
CONT100010	0	01-Jan-2018	01-Jan-2018	31-Mar-2018	3 months	Fixed	Initial contract record
CONT100010	1	01-Jan-2018	01-Apr-2018	31-May-2018	2 months	Fixed	First extension
CONT100010	2	01-Jan-2018	01-Jun-2018	31-Jul-2018	2 months	Fixed	Second extension

The contract start date isn't a stored value. The application calculates the contract start date by adding one day to the contract end date of the previous extension. For the initial contract record, the contract start date is the same as the initial contract start date.

You can correct records in the contract extension history, but with a few conditions.

You can only correct the contract end date and contract duration fields for the latest contract record (second extension record in the table). This is because any changes that you make to these fields in the initial records aren't propagated to the subsequent future records. This condition ensures that there are no gaps in the contract duration. For example, in the table if you reduce the contract duration to 1 month for the first extension, the contract end date becomes 30-Apr-2018. However, the contract end date for the second extension doesn't automatically change to 30-Jun-2018. You can't delete the initial contract record.

Update a Contract

You can update a contract from the Employment Contracts page by adding an effective dated update to the existing contract record. To add a new effective dated record, you need to first edit the record above which you want to add the new effective dated record. When you edit the record, you need to enter the date when you want to insert the new effective dated record. If you leave the date unchanged, the application will consider it as a correction. You can also update the contract duration while updating a contract, when you add an effective dated record which is the latest record for a contract. However, you can't change the duration of contract while adding an effective dated record, if a future record exists.

Note:

Except for the contract duration and contract end date, you can update all the other fields even if the newly added record is the latest effective dated record or not.

Updating of the contract can also be used for tracking contract deduction.

For example, an employee is hired for a 1.5 year contract on 01-Jan-2018 and 5 months later on 01-Jun-2018, his contract needs to be reduced to 1 year. You can create an effective dated update on Employment Contracts page to track this transaction.

Contract Number	Extension Number	Effective Start Date	Effective End Date	Contract Start Date	Contract End Date	Contract Duration	Description
CONT100010	0	01-Jan-2018	31-May-2018	01-Jan-2018	30-Jun-2019	1.5 years	Initial contract record
CONT100010	0	01-Jun-2018	31-Dec-4712	01-Jan-2018	31-Dec-2018	1 year	Effective dated update

Note:

Date effective contract changes aren't supported when you are updating contracts using REST API.