Agreements
0 minutes
01/07/2025

Agreement Types

Flowtly offers several types of agreements to accommodate various business needs and legal requirements. Each agreement type is tailored to specific use cases, ensuring that all aspects of a relationship or transaction are appropriately documented and managed. Below are the primary agreement types available:

Standard Employment Agreement:

A basic contract outlining the terms of employment, amount of job size and hours of work per week, compensation, and position. This type of agreement is typically used for regular employees. It also fits for agreement with a set duration, that is often used for temporary positions or project-based work. This contract automatically terminates at the end of the specified period unless renewed.

The extension (Annex)

If the agreement ends, it can be extended with a special type of contract - an annex. You need to add a new agreement with the annex type and configure the appropriate parameters. By including an annex, parties can provide comprehensive details and ensure that all aspects of the agreement are fully documented, facilitating better understanding and execution of the contract terms.

Use Cases:

  • Detailed Technical Specifications: An employment contract includes a basic overview of job responsibilities but requires detailed technical specifications for specific roles.
  • Project Timelines and Milestones: A project management agreement requires detailed project timelines, milestones, and deadlines that are too extensive to include in the main agreement.
  • Additional Terms and Conditions: A service contract includes standard terms but requires additional clauses or conditions based on specific customer requirements.
  • Extending the duration of an employment contract.

Termination

The termination of cooperation is carried out by means of a "termination" contract. Please select the exact date of termination of cooperation. It also defines the conditions under which the parties involved can terminate the agreement and the procedures to be followed.

Use Cases:

  • Mutual Termination: An employee and employer mutually decide to end the employment contract due to a change in business direction. The agreement is terminated without any penalties or additional obligations, and both parties sign a termination agreement.
  • Termination for Cause: An employer terminates an employee for cause due to serious misconduct, such as theft or fraud. The agreement specifies that no severance pay will be provided in such cases, and the termination is effective immediately upon notice.
  • Termination for Convenience: An employee chooses to resign from their position to pursue another opportunity. The agreement requires the employee to provide a 30-day notice period, during which they continue to fulfill their job responsibilities.
  • Automatic Termination: An employment contract automatically terminates upon the expiration of a fixed term or the completion of a specific project. The agreement outlines that no further notice is required, and any outstanding payments or obligations will be settled according to the terms of the contract.
  • Obligations Upon Termination: Upon termination, an employee is required to return all company property, such as laptops and access cards, and maintain confidentiality regarding company information. The employer must provide a final paycheck and settle any outstanding benefits.

List of Intent

Letter of Intent (LOI): is a preliminary agreement that outlines the basic terms of a future basic contract. The LOI is often used to establish a mutual understanding between parties before entering into detailed negotiations.

Use Cases:

  • Business Transactions: Commonly used in business transactions such as mergers, acquisitions, joint ventures, or partnerships to outline the initial terms and demonstrate commitment.
  • Project Agreements: Used to outline the basic terms of a project or service agreement before finalizing a detailed contract.

Work experience

These agreements serve as records of prior employment or contractual engagements, primarily for reference and managerial purposes. This type of agreement does not influence leave balance calculations or other system calculations, ensuring that historical data can be stored without affecting ongoing or future computations.

Use Cases:

  • Documenting Historical Employment: A manager wants to upload a previous agreement for an employee who has worked with the company before. The "Work experience" type allows this without altering the employee's current leave balance or work entitlements.
  • Compliance and Recordkeeping: An organization wants to maintain records of all past agreements for compliance or auditing purposes without integrating them into active employment metrics.
  • Tenure Tracking: Managers can use this agreement type to account for an employee's overall work experience, which might influence benefits like annual leave thresholds or seniority-based recognition, without automatic system updates.