Contract - External Resources

4 min. readlast update: 11.13.2025

External Resources – Contract Management

Purpose

The External Resources – Contract section allows organizations to manage non-permanent workforce agreements.
It supports tracking all contract details, assignments, payroll information, cost structures, and supporting documentation for third-party or project-based workers.

This feature ensures that outsourcing processes are fully transparent and aligned with project and financial management practices.


Access Path

Main Menu → People Management → Contract → External Resources


 1. Header

The Header section centralizes the key details of the external employee’s contract.
It defines the contractual relationship between the organization, the supplier, and the external professional.

Field Description
Employee ID Unique system-generated identifier for the contract.
Company Indicates the company or business unit responsible for the external resource.
Person The name of the external professional.
Term Contract type (e.g., Outsourcing Contract, Temporary Assignment).
Start Date / End Date / Renewal Date Defines the contract duration and renewal period.
Work Type Indicates the work mode (e.g., On-site, Hybrid, Home Office).
Reasons to Terminate a Contract Specifies predefined reasons for contract closure.
Managers Lists users responsible for managing or approving the contract.
External Employee Toggle indicating whether the resource is external (enabled by default).

Note:
An external employee refers to a non-permanent worker hired through a third party or on a contract basis for specific tasks or projects.


2. Detail Career

This section defines the organizational and functional placement of the external professional within the company structure.

Field Description
Area Indicates the business area or division where the resource operates.
Function Describes the professional role (e.g., Business Consultant, Developer).
Category Defines the professional category or internal job grade.
Department Identifies the department responsible for the contract.
Title Optional field for a custom role or title.

Example:
An external consultant working in Supply Chain Operations with a Business Consultant function and assigned to the System Integration department.


3. Detail Payroll

The Payroll tab allows the configuration of payment, scheduling, and supplier-related data for the external resource.

Field Description
Supplier Identifies the third-party company providing the resource.
Work Calendar Defines the calendar schedule applicable to the resource (e.g., Western Standard).
Daily Rate The agreed-upon payment per working day.
Hours per Day / Hours per Week Determines the standard working hours for cost and payroll calculations.
Days of the Week Specifies which days the resource is expected to work.

Example:
The consultant works Monday to Friday, following a Western Standard calendar, with a daily rate of 200 EUR and an 8-hour workday.


 4. Detail Documents

The Documents tab enables attaching all relevant contract-related files.
This ensures centralized storage and easy access to documentation such as contracts, NDAs, tax forms, or compliance certificates.

Functionality:

  • Drag and drop files directly into the upload area.

  • Alternatively, click Browse to select files manually.

  • Uploaded documents are stored and version-controlled under the employee’s contract record.


 5. Detail Cost Management

This section defines how the cost of the external resource is tracked and billed within the organization.

Field Description
Billable (Toggle) Determines whether the resource’s time and cost can be allocated to billable projects.
Billable Percentage Sets the proportion of the resource’s time that can be invoiced (e.g., 100%).
Daily Salary Rate The actual internal daily cost of the resource.
Daily Theoretical Rate The benchmark or standard rate used for project cost comparisons.

Example:
A resource may have a Daily Salary Rate of 210 EUR and a Daily Theoretical Rate of 250 EUR, with 100% of their time billable to projects.


Summary

The External Resources – Contract Management feature offers a unified environment to manage third-party professionals, ensuring full control over contractual terms, costs, and compliance documentation.

Section Function
Header Defines main contract details and responsible managers.
Career Positions the resource within the company structure.
Payroll Defines working schedule and compensation data.
Documents Stores all contract-related documentation.
Cost Management Controls billability and cost rates for financial tracking.

Related Articles

Internal Employee Contracts
Work Types Configuration
Reasons to Terminate a Contract Setup
Resource Management – Allocations and Sourcing
Project Cost Management Overview


 

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