Policy: Legal-financial aspects of work contracts: Difference between revisions

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===Reconciliation of cost===
===Monthly payment===
The typical case is that the organization guarantees each new person a minimum monthly income for a period that is typically 1 year. The same individual might have multiple contracts with the organization (one for each project in which s/he participates), or one contract which covers one or more projects from which the individual has financial benefit. In both cases, the contract should have an attachment that clearly specifies the daily (or sometimes hourly) rate that the person may charge the organization, as well as the maximum number of days (or hours) that the person can charge towards involvement in a specific project. The Financial Unit issues a monthly payment of the [[Minimum Monthly Payment]]
In order to release the monthly project payment, every associate has to submit timesheet showing the actual hours spent on each and every project 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 productive hours set in the [[Employee/Service Agreement]].


[[Category:Policies]]
[[Category:Policies]]

Revision as of 07:11, 1 December 2011

Legal aspects

Practically every individual associated with Future Worlds Center has to comply with the organization's principle of independence. The organization might consider its associates as committing their full time and effort to their projects; however, from the legal point of view, they are independent contractees.

Since our associates considered as contractees and not employees, they shoule be registered as self-employed and arrange to pay their own personal social insurance and other related taxes, as the organization is not obliged to cover those costs for associates (who are not employees).

Each individual receiving income from the organization should possess the following work related documents:


Financial Aspects

Productive Hours

Definition of productive hours (time) of an associate can be vary due to the different personnel cost approach of the European Union programs.

Personnel cost based on Man-month

Personnel cost based on % of time

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

  • The associate devotes minimum 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 2 consecutive months.

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


Monthly payment

In order to release the monthly project payment, every associate has to submit timesheet showing the actual hours spent on each and every project 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 productive hours set in the Employee/Service Agreement.

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