In good times and bad: Employment contracts in SAP HCM

The most important document in a worker’s professional life is their employment contract. It has to be signed before the working relationship can begin. It regulates the most important rights and duties in an employee’s job, as well all the issues that could become important in the course of the professional relationship. A good contract between employer and employee, however, doesn’t just organize the working relationship while it’s working well – it also applies in case of conflicts. Contracts aren’t just concluded for the good times, after all, but for bad ones too. Especially for employment contracts, it’s important to ensure that wording is precise and legally sound, down to the last detail.

Watch out for traps!

When you’re creating the document, however, there seem to be countless traps lying in wait to disrupt the process. For instance, employees in the HR department might call up and adapt Word templates from the intranet, the hard drive, or their local PC. This is certain to cause errors, whether because they’re using outdated templates, or because they remove or add individual data points or paragraphs. Different contract templates might even contain the same paragraphs, but use different formulations.

A better idea: Automated employment contract creation

SAP-integrated solutions for digital contract creation, on the other hand, allow you to fill in a future employee’s personal data and “activate” or “deactivate” individual passages. With EASY, the multi-stage process that launches the creation or adaptation of employment contracts is fully automatic. An HR employee can start the process directly from the normal SAP environment. The responsible employees can simply insert data on the applicant that’s already available in SAP HCM into the document. The employment contract will be created automatically, with the right layout and the right footer. Pre-defined, legally reviewed text building blocks ensure the contracts are legally valid.

Flexible work time models require flexible solutions

Job sharing, sabbaticals, family leave time – the demand for flexible job models is growing. For employers, this means staying flexible in how they design employment contracts too. Adjusting full-time contracts to become part-time ones, or extending temporary contracts, however, is anything but simple. If an employee plans to stay with the company following a short-term employment relationship, a new employment contract or an extension agreement has to be concluded promptly.

Reminder function and time savings included

EASY uses a reminder function to keep employees from the HR department informed about important upcoming deadlines. HR professionals can also automatically launch the process to extend an employment agreement with EASY.

EASY can also be of service when employees need to change an employment contract – for instance, to convert it from a full-time to a short-time position. If an employee wants to apply to work part-time, he will click the appropriate button in the company portal, starting the process through an ESS scenario. The HR department and manager review the employment contract and add to or adjust it as needed. The software then automatically logs information such as changes in salary or changed weekly working hours in SAP. This saves time – for employees, for managers, and above all for the HR department.

You can find more information here: Personnel Management with SAP

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