Policy: Legal-financial aspects of work contracts

Legal aspects

Every individual associated with Future Worlds Center has to comply with the organization's principle of full commitment and devotion. The organization considers its associates as committing their full time and effort to their projects even when their respective paid number of hours per month are less than those expected for a full time contract.

Individuals directly hired by the organization are considered and treated as full-time employees of Future Worlds Center and are referred to as Associates. However associates are responsible for paying their own social insurance and other related taxes required by Cyprus law since these amounts are included in their income provided by the organization. This principle is implemented in order to comply and maintain the social entrepreneurial character of the organization, i.e., encouraging associates to feel and behave responsibly for their projects and own benefits.

Each individual receiving income from the organization should sign and possess copy of the following work related documents:

• Nondisclosure Agreement
• Honour Declaration
• Confidentiality Agreement
• Gentlemen's' Agreement: considered as a welcoming letter referring to a minimum monthly payment without contractual bond
• Working Contract: specific project-task related contract

Financial Aspects

Productive Hours

Due to the fact that every associate is directly hired to fulfil certain project activities, every hour reported by the associate and therefore paid out is considered productive. Nevertheless, there is an acceptable maximum number of hours in a year that can be charged to the organization, unless the Board decides due to specific circumstances otherwise. The maximum annual productive hours of associates are calculated as follows:

1. Calendar days per year minus weekends: 260 (52 weeks * 5 days per week)

2. Allowed Annual holidays (in n° of days): 5

3. Recognized Statutory holidays (in nº of days): 15

4. Others (i.e. illness etc.) (in n° of days): 0

5. Productive days per year (1.-2.-3.-4.): 240

6. Working hours per day: 7

7. Annual working hours (1.* 6.): 1,820

8. Productive hours per year (5.* 6.): 1,680

9. Productive hours per month: 140

The organization recognizes the fact that there are periods and circumstances in the implementation of projects, which require one to work more than the usual average. The organization does not pay a different rate for extra hours, but accepts a maximum effort of 11 hours per day (i.e., approximately 220 hours per month) as actual working hours, which will be charged with the same rate as agreed in the respective contracts. This arrangement is acceptable only in extraordinary circumstances approved by the Executive Director.

Although the productive hours calculation is unified for the whole organization, the calculation of the personnel cost can be vary from project to project due to the different definitions of time commitment applied by funding organizations (such as in European Commission programs).

Personnel cost based on Man-month

In case of projects that define staff involvement as a certain man-month (or man-days), every hour reported by the associate is subject to payment in compliance with the Working Contract, no fluctuation in hours or any difference between hours reported and hours paid is allowed unless the Working Contract says otherwise.

Personnel cost based on % of time

In case of projects that define staff involvement as a certain percentage (%) of a full time assignment (e.g., projects funded by the Europeaid Program), Future Worlds Center considers an associate as full time, if the following criteria are met:

• The associate devotes a minimum of 1,680 hours per annum to his/her task, i.e., average 140 hours per month and
• The fluctuation of the monthly productive hours during a calendar year does not exceed the 30% of the average monthly hours stated above.

In extraordinary situations in which an associate is constrained in delivering his/her tasks due to unexpected obstacles, and the monthly productive hours fall below the 30% of the expected average for more than 3 consecutive months, Future Worlds Center has the right to terminate the contract.

The above principles must be implemented in case of pro-rata calculation as well.

Rates

Due to the fact that Future Worlds Center associates are directly hired to implement specific project tasks and no associate shall be funded by the organization's own resources without external co-funding (i.e., associates are hired only for the duration of projects), general, administration or other organizational activities shall be executed during volunteered hours unless specifically approved by the Board), the rates budgeted in the corresponding Grant Agreement with the funding organization for which they are hired are used for calculation of their remuneration.

Nevertheless, a maximum hourly rate per position is defined and approved by the Board which cannot be exceeded in any circumstance and subject of revision on annual basis.

Valid maximum hourly rates as of 1st January 2013:

Position	Maximum rate in EUR
Overall Project Manager	46.00

Monthly payment

In order to release project payments , every associate has to submit timesheet showing the actual hours worked on each and every project (or project task) in which s/he is involved. The payment is calculated based on the information of the the submitted timesheet taken into account the rate and the definition of the personnel cost calculation set in the Working Contract. Release of project payments on account can take place upon the request of the associate or as agreed in the Gentlemen's' Agreement, but the circumstances must be recorded on the Contract Amendment.