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. |
| Work Type | Indicates the work mode (e.g., On-site, Hybrid, Home Office). |
| Term | Contract type (e.g., Outsourcing Contract, Temporary Assignment). |
| Probation Period | Predefined period during which a new employee's performance and suitability for the role are assessed before the employment is formally confirmed. |
| Start Date / End Date / Renewal Date | Defines the contract duration and renewal period. |
| Last Work Date | The employee's final day of active work in the company. |
| Original Hire Date | The employee's first date of employment within the group of companies. This date is retained when an employee transfers between companies belonging to the same group, preserving the employee's original service commencement date. |
| 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. |
| Title | Optional field for a custom role or title. |
| Department | Identifies the department responsible for the contract. |
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.
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Alternatively, click Browse to select files manually.
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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
Resource Management – Allocations
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