Employee changes employer within Profit

If the employee switches employers in Profit, then you need to complete a number of steps in Profit.

Content

Description

If an employee changes employer in Profit or if you want to merge employers, the process is as follows:

  • Report an employee's end of employment

    You report the end of employment of the employee with the old employer using the End employment wizard.

  • Report the employment start of an employee

    You report the start of employment of the employee with the new employer using the Start of employment wizard.

    Note:

    You do not add the employee again in Profit. You report the start of the employment of an employee again using the existing employee code.

  • Transfer leave balance

    If an employee changes employer, there is always a new leave balance line. The same applies if the employee leaves employment and enters employment again.

    You can write off the remaining leave balance with the former employer by applying a leave balance correction, and enter the balance with the new employer using a leave balance correction.

  • Transfer accrued holiday allowance

    If an employee switches to another employer in Profit, you can suppress the payment of the holiday allowance for the previous employer.

    You can copy the calculation basis from the old employer to the new employer. If the new employer falls under another CLA, you cannot transfer the calculation basis.

  • Transfer the accrued end of year bonus

    If an employee moves to a different employer in Profit, you can suppress payment of the end-of-year bonus by the former employer. This works in the same way as when suppressing the holiday allowance, only in this case the wage component suppresses the end of year benefit.

    You can copy the calculation basis from the old employer to the new employer. If the new employer falls under another CLA, you cannot transfer the calculation basis.

Company car

If an employee changes employer and the employee has a car from the previous employer, then Profit also calculates the car under the new employer. Despite the fact that the car is registered to the old employer, Profit does calculate the car for the new employer, as the old employer may be the owner or manager of the car.

As far as the additional tax liability is concerned, Profit calculates it for the new employer for the entire period. If an employee changes employers midway through the period, Profit calculates the addition for the entire period for the new employer. To prevent this, you enter a deviating amount for both parts of the relevant period manually.

Attachments of earnings

Profit keeps track of attachment of earnings per employee, regardless of the labour relation or the employment. If the employee leaves employment, Profit does not check for any current attachment of earnings. If the employee re-enters employment with the same or a different employer, then the current attachments of earnings automatically come into effect again. If this is not desirable, you will need to enter an end date in the properties of the relevant attachment of earnings.

Back pay contract

When an employee transfers to a new employer you end the employment with the old employer. For the new employer a new employment is created. You cannot add a back pay contract for the old employer now. If the new employer is part of the same holding company as the old one, you should make the subsequent payment through the new employer.

Wage declaration

If the employee changes employer in the course of the year, the employee is included in the declaration for the new employer from the period in which the employee changes employer.

Procedure

Also see