Work contracts are handled using entitlements. Employees are granted their contracted hours each contract period (for example, every month, every week, or every two weeks), and then their worked time decrements their contract hours balance. Employees also have a carryover balance, which captures any variance between the number of hours the employee was contracted to work and the number they actually worked.
For example, an employee is contracted to work 40 hours per month. In October, the employee actually worked 50 hours. At the end of the month, the excess ten hours decrement the employee’s carryover balance. The following month, the employee is still granted their 40 hours, but the negative carryover balance decreases the remaining hours they should be scheduled to 30. Similarly, if an employee doesn't work enough hours in a period to satisfy their work contract, their carryover balance is incremented, and adds to the number of hours they can be scheduled in the following period.
Before you can use the work contracts functionality, you must complete the following configuration steps:
- Enable Role Features for Work Contracts
- Configure Pay Codes for Work Contracts
- Configure Balances for Work Contracts
- Configure Work Contracts
- Assign Work Contracts to Employees
- Configure Entitlements for Work Contracts
- Configure Pay Policies for Work Contracts
Note: There are two methods of configuring this functionality: one that uses only one balance for carryover hours, regardless of whether they are excess or deficit hours, and the other that uses separate balances for excess and deficit hours. Both methods use largely the same configuration. For brevity’s sake, this section describes the configuration for the one-balance method, with notes anywhere the configuration differs for the other method.
When the work contracts functionality is configured and an employee has been assigned a work contract, Dayforce automatically shows a summary of the employee’s contracted, carryover, and remaining hours when users hover over the employee’s name in Schedules:
Approved time away from work requests for the current week are deducted from the remaining contract hours balance and shown in the Period Contributing Hours field. Approved time away requests that are for next week, but are still within the current pay period, are shown in the Non-Period Contributing Hours field.
Note: Time away from work requests that are pending approval aren't included in the deduction of hours.
You can also configure the following scheduling and time away from work related functionality for work contracts and work patterns: