Career history
In Profit you can define a career history for each employee to determine the number of service years of an employee. This can be important for the service period benefit, among other things.
Profit automatically generates a career history line per employment.
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Description
For the career history before the contract lines you can manually add career lines. For each career line, Profit calculates the employment duration in whole years, months and calendar days.
Career lines with a connection
When reporting the start of employment of an employee, you can specify the start date of employment to be used to calculate the years of service. Profit uses this to generate one or more career lines. You can also add a career line manually that will count with regard to the working period. You can use the Employed (re. seniority) field for this.
Example:
An employee starts employment as from 01-01-2011. From 01-01-2003 to 31-12-2010 the employee has worked for the same organisation. To record this in Profit, do the following:
- You report the start of employment of the employee as 01-01-2011 and you enter 01-01-2003 in Employed (re. seniority).
- Profit automatically generates a career line from 01-01-2003 to 31-12-2010 and a career line with a start date of 01-01-2011.
On a timeline, this looks as follows:
Non-contiguous career lines
If the career lines do not connect to each other, there are gaps. Career lines do not connect, if for example the employee has not worked for the relevant organisation in the intermediate period.
Example:
An employee starts employment as from 01-01-2011. From 01-01-2005 to 31-12-2008, the employee has worked for the same organisation. To record this in Profit, do the following:
- You report the start of employment of the employee as 01-01-2011 and you enter 01-01-2005 in Employed (re. seniority).
- Profit automatically generates a career line from 01-01-2005 to 31-12-2010 and a career line with the start date of 01-01-2011.
On a timeline, this looks as follows:
Note:
In this example the historical career line does not connect to reality, because the employee in this example has ended the employment for a period of time. The number of years of service do match. If you want the historical career line to reflect the actual situation you can modify the career line.
Change employed (re. years of service)
After reporting the start of employment of an employee, you may discover that Employed (re. seniority) is not correct. You cannot change this manually. To change this, add a new career history line.
Example:
An employee starts employment as from 01-01-2011.
After reporting the start of employment of an employee, you want Employed (re. seniority) to change to 01-01-2003. To record this in Profit, do the following:
- You add a new career history line with a start date of 01-01-2003, which is what you want the Employed (re. seniority) to be. Enter 31-12-2010 as the end date.
- You change the career history line with the start date of 01-01-2011 and deselect the Do not include previous lines for seniority benefit check box.
- Profit automatically determines Employed (re. seniority) as of 01-01-2003.
On a timeline, this looks as follows:
If an employee leaves employment and at a later date re-enters employment with a period in between and the years of service of the first employment count towards the new employment, the calculated Employed (re. seniority) is increased with the number of calendar days of the intermediate gap. If the intermediate period is at least one calendar month, then it is not the whole month that is counted, but the number of calendar days in that month. That means that February counts for 28 days, whereas March counts for 31 days. After all, if an employee has not worked for a period of 15 days, then the calculation is over 15 days and not over half a month. This calculation method was chosen to prevent the calculation of an incorrect date in certain situations.
The calculated years, months and days in the career line are always one day less than what is actually used in the calculations. The period from 1 March to 31 March is displayed as 30 days. In the calculation of the Employed (re. seniority), the 31st of March is however included. This too cannot be resolved in another way because otherwise, in certain circumstances, Profit calculates an incorrect date.
You can correct the calculated date by specifying a deviating value in the fields under Labour relation (years, months and days).
Re-employ an employee
When re-employing an employee in Profit, you have the option to include the old labour relation in the service period benefit. You specify this by entering Employed (re. seniority). Profit uses this date to generate a career line.
Example:
An employee is re-employed as from 01-01-2010. A prior labour relation is present in Profit and it counts towards the service period benefit. The previous labour relation is from 01-01-2007 to 31-12-2007. To record this in Profit, do the following:
- You report the start of employment of the employee as 01-01-2010 and you enter 01-01-2009 in Employed (re. seniority).
- Profit automatically generates a career line from 01-01-2009 to 31-12-2009 and a career line with the start date of 01-01-2010.
On a timeline, this looks as follows:
Note:
The old labour relation is not included because in the new career line Profit has automatically specified that the previous lines are not to be included.
Employee type
The career lines do not take account of the employee type in Profit. If a type of employee does not qualify for the service period benefit, you have the following options:
- In a career line you can specify that a previous career line does not qualify for the service period benefit.
- You can modify the working hours in a career line.
Example:
As from 01-01-2010 an employee has started employment as a trainee. As from 01-01-2011 the employee will be in permanent employment. The Employed (re. seniority) must be set to 01-01-2011. To record this in Profit, do the following:
- You report the start of employment of the employee as 01-01-2011 and enter 01-01-2011 for Employed (re. seniority).
- Profit automatically generates a career line with the start date of 01-01-2011. The previous career line automatically does not count towards the service period benefit.
In a timeline this would be displayed as follows:
Unpaid leave
A number of CLAs specify that long-term unpaid leave does not count towards the service period benefit. For the determination of the service period benefit, Profit does not take long-term unpaid leave into account. You can adjust the working hours manually, in career lines with an end date.
Preparation
- Configure alerts
You can configure alerts to ensure the timely payment of the service period benefit.
- Configure wage components
For the payment of the service period benefit inProfit Payroll, two components are included by default.