What is an Employee Contract : Every organization consists of employees which require a proper agreement between the company (Employer) and the employee. An employment contract is a signed agreement between an employee and an employer. Employee contracts contain details like hours of work, the rate of pay, the employee’s responsibilities, etc. In the OdooV15 Employee contract module, you can modernize the workflow and support HR personnel to create contracts with company policies and apply special clauses.
An employee contract can be configured following details like contract details, employee name, department, job position, contract terms, employee salary structure, contract duration, working schedule, and work permit details, etc. Contract management is when someone takes on the responsibility of managing contracts for employees or vendors or other parties.
In this blog post we will talk about how Odoo Employee contract management process flows and how you can configure it for your HR department but before this we have to understand why Odoo contract management module is important for your business.
Importance of Employee Contract Management : Human resource departments of any organization consist of various tasks and duties with respect to every employee of the organization. Creating employee contracts for different ranges of employees can be tedious as every employee duties, responsibilities, pay scales are different. A proper contract management tool helps HR with proper documentation and automation. With Odoo Employee contract module you can streamline the Workflow and assist HR personnel to create contracts with company policies and apply special clauses, suitable to each employee’s job description and role.
This avoids employee claims due to their contracts, which is being drafted in too similar terms to those of other employees. The solution also enables HR to track contractual changes during contract review and obtain approvals through automated workflows.
In Odoo it is easy to create employee contracts. An employee contract is necessary to calculate the payslip for each employee. You can select the ‘Employee’ ‘Department’ and other basic information from the window and assign the contract directly to the employee. Whenever you already entered the employee information then Odoo will automatically fill the fields like department, job title, etc.
With this module, the user can select multiple employees and create a contract for them by specifying their salary and contract type. You can create more than one contract for each employee. We can set the contract under Running, To Renew and Expired. But payslip can be created only when the contract is under Running state.
Now let’s start how you can manage employee contract management in Odoo V15. For this first of all you have to install the Employee module from the database.
From the above image you can see that the Employee Module is already installed for me. Now I will click on the employee module. Here you can see the dashboard of this module. All of the Employees will be listed down on the dashboard of the module itself.
With the help of the create button you can add a new employee in this list. Now click on the create button.
Now fill the details of the employee like Employee Name, Department, Job Position, Work Mobile, Work Phone, Work Email, Work Location, Company
After successfully creating the employee, now you can create the contract by simply clicking the ‘Contracts’ Tab in the employee profile.
A page with the contract details will open up, as shown in the screenshot below.
This is the contract configuration page of the Employee module. The name of the employee and the department will be automatically filled in. You can set the contract date for the Contract start date and End date fields as highlighted in the above screenshot.
- Start Date : It means the start dates of the Contract.
- End of Trial Period : It depicts the ending date of the contract trial period.
- End Date : It shows the end date of the Contract.
- Working Schedule : This means an employee’s global leaves, and day-wise working.
Contract date plays an most important role in Contract management. Most of the information on the Contracts is highly dependent on the dates, and companies stack and store the employees based on Contracts traditionally to manage them efficiently. Same as, in Odoo, you can manage the contracts based on their dates. So choose the dates concerning the Job position and choose the Job position for the Job position field.
Salary Structure : Now come to the salary structure of the employee. There are two by default Salary Structures available in Odoo, Employee, and Worker as you can see in the screenshot below.
From the two options you can choose one of them. To know more about the Salary Structure, click on the external link button next to the Selected Salary Structure, as you can see in the screenshot below.
Now click on the external link as highlighted in the screenshot above, and a new window will open on the Salary Structure type as shown below.
Click on the External links for advanced configuration options. After the configurations on the Salary structure type use the SAVE button.
Salary Structure Type indicates the split of salary including Basic Salary, Gross Salary, and Net Salary. Salary structure is based on one or other factors like employee level, rank, or status.
Under Salary Information you can add the monthly salary for each employee.
Now you can fill all the required fields like Structure Type, Country, Wage Type, Default Scheduled pay, Default Working Hours, Default Work Entry Type, and click on the Save button.
After setting the Salary Structure type you can configure the Wage on Payroll with respect to the Salary Structure type. You can add the Working schedule from the Working Schedule page as shown in the screenshot below.
From the list as you can see in the screenshot above, choose the working schedule. The external link to the working schedule will let you to the configure for selected working schedule and a page for configurations will open up as shown in the screenshot below.
You can change the Schedules. Under the working hours section of the page, the working hours or the schedule will be listed down with respect to their schedule time. When the process will be complete save this form with the help of Save Button.
There are usually multiple HRs in a company. With the Odoo 15 employee module, you can easily assign an HR to Contracts. From the HR responsible field, you can hire an HR who will be responsible for the management of the contract as shown in the screenshot below.
Choose the HR from the drop down list and as Odoo is all about convenience you can directly create an HR from here. Type in the name HR and click, Create and Edit. Create the HR responsible and press the SAVE button.
The next step in the process is to enter the Contract details under the Contract details tab as shown below.
Odoo allows you to set a Template for the Contract. The Contract Template field will allow you to add the Templates to the contracts. Click on the Contract template field and for the drop-down list choose one as you can see in the screenshot below.
Press on ‘Search more’ for more contract Templates as shown below.
Now you can choose from the list or you can create a Contract template by clicking on the CREATE button on this same page, which will actually create another Contract that you can use as a template.
As you can see in the screenshot below, I have entered all the required detail. After entering the contract details let’s move to the Salary Information section.
As the name suggests, the Salary information section or tab will allow you to configure the salary information on the Contract. The wage type is set to Monthly Fixed Wage.
As you can see from the name these sections include the Personal Documents. Use the SAVE button to finish the process.
Through this way we can manage the contracts with the Odoo V15 employee module.
As the employee details are highly integrated with the modules you don’t have to go through the employee data again for every single step in the process. The data will be automatically collected and arranged in the module itself for you to effortlessly carry out the contract management operations.