Updated on May-2023
Whenever the organization requires manpower, the organization prefers the employees who are already associated with them, such as contract employees or interns. If suitable, the contract employees can be converted into regular employees.
While converting the employee, there can be an effect on tax calculations. To avoid taxation errors, you must first settle the contract employee and then add him/her as a regular employee.
To convert the contract employee to a regular one, perform the following actions:
Process full and final settlement of a contract employee.
Add a settled employee as a new employee.
To process the full and final settlement of a contract employee, perform the following actions:
From the greytHR Admin login, navigate to Payroll > Payroll Inputs > Final Settlement. The Final Settlement page opens.
Click the Settle Employee button. The Settlement page opens.
Note: Alternatively, you can navigate to Actions > Payroll > Monthly Actions > Settle Resigned Employee. The Settlement page opens.
Under Step 1: Employee, select the Search Employee option to search for a particular employee.
In the Search Employee search box, search for the contract employee.
Click Next. Step 2: Resignation Details section appears.
Under Step 2: Resignation Details, from the Resignation Submitted On dropdown calendar, select the date of the employee's resignation.
From the Leaving Date dropdown calendar, select the employee's last day.
From the Leaving Reason dropdown list, select the employee's reason for leaving the organization.
From the Settlement Date dropdown calendar, select the settlement date of the employee.
Click Next. Step 3: Notice Pay section appears.
Under Step 3: Notice Pay, select the Notice Required checkbox to activate the notice period for the employee.
In the Notice Period text box, enter the number of days to be served as the notice period.
Based on the Notice Period you have entered system calculates the Shortfall in Notice days automatically.
Click Next. Step 4: Work Days section appears.
Under Step 4: Work Days, read and understand the notifications displayed.
Under the Days Worked column, enter the number of days the employee has worked.
Click Next. Step 5: Leave Encashment section appears.
Under Step 5: Leave Encashment, enter the employee's leave details.
Click Next. Step 6: Remarks section appears.
Under Step 6: Remarks, read and understand the note. To make a different choice regarding the IT declaration, click click here.
In the Remarks text box, enter the remarks, if any.
Click Finish to complete the full and final settlement of the contract employee. A success message appears.
To add a settled employee as a new employee, perform the following actions:
From your greytHR Admin login, navigate to Employee > Main > Analytics Hub. The page opens.
Click Add Employee button. A form appears.
under Step 1: Basic Information section, enter the basic details of the employee, such as Employee Number Series, Employee No, Reporting Manager, Date Of Joining, and Emergency Contact Number. We recommend you fill in as many details as possible.
Select Allow the employee to fill in their information check box to allow the employee to fill in their information during onboarding.
Click Employee Onboarding Policy. The link redirects you to the Employee Information Settings page. The page enables you to make changes to the employee onboarding form.
Click Next. Step 2: Employee Position form opens.
Enter the employee details such as Designation, Department, Grade, Location, and Attendance Scheme.
Click Next. Step 3: PF, ESI & LWF form opens.
Enter employee details such as PAN Number, PF Number, and UAN Number.
Select an appropriate PF Excess Contribution option.
Click Next. Step 4: Payment Mode form opens.
From the Payment Type dropdown list, select the mode of payment.
Note: If you select the option Bank Transfer/Demand Draft, you must enter the additional details such as Bank Name, Bank Branch, DD Payable At, and Account Number.
Click Finish to complete the process of adding a new employee. A page appears and displays the summary of details of the new employee.
Other related links:
▶ Video - Watch our how-to videos to learn more about greytHR.
❓ FAQs - Solve your queries using FAQs.
📢 Product Update - Read about the product updates.