Contract system is a set of rights, duties and responsibilities of the employer and employee, terms of payment and organization of labor, established on the basis special type employment contract - contract.

Characteristics contract - that it is always concluded only in writing and has an urgent nature (validity period). As a rule, contracts are concluded for a period of 1 to 5 years.

The contract system makes it possible to:

Retain the most qualified employees
enterprise, which is important in the context of the rapid development of areas alternative to production (for example, services);

Provide part-time fixed-term employment, which allows for more flexible regulation of the number and composition of the enterprise’s personnel and contributes to the additional attraction of qualified workers from outside;

To increase the responsibility and creative attitude to the work of an employee hired on specific terms, especially in leading areas of production.

Remuneration in accordance with the contract is established taking into account the complexity and responsibility of the work, qualification level and business qualities employee. Moreover, in addition to the basic salary or rate, the contract may additionally stipulate conditions for increasing (decreasing) the amount of wages, paying bonuses, allowances and additional payments, and may also determine social security benefits and establish additional social guarantees, determine the working hours, the duration and time of granting days of rest and vacations, etc. Remuneration at high rates under the contract system makes it possible to abandon ineffective reward systems and at the same time guarantees a certain form of assessment of labor contribution. The contract system aims for greater individualization labor relations than the tariff system. This is its advantage, but the contract system has one negative side for the employer: as a rule, while maintaining the total number of personnel, it leads to an increase in the wage fund.

Main source of payments wages all categories of workers are salary fund, the funds of which are formed from the cost of manufactured products.

Payroll fund includes the amount of all expenses of the enterprise for wages, both in cash and in kind, regardless of the sources of financing payments. IN The composition of the wage fund includes:

Remuneration for work actually performed (wages accrued for work performed or time worked at piece rates, tariff rates, official salaries);

Compensatory and incentive payments related to working hours and working conditions (for example, monetary compensation for the increase in the cost of food in the company canteen, monetary compensation for the increase in the cost of housing, utilities and so on.);

Payment for unworked time (additional wages), which includes payment for vacation time, the period of performance of government duties, if provided for by law, monetary compensation for unused vacation, employee wages retained by the employee engaged, for example, in agricultural work, payment educational leaves, forced absenteeism but the fault of the enterprise administration.

Payment for unworked time is calculated based on the determination of the average salary.

Distinguish wages include only those payments that correspond to the normal organization of production and labor. Actual fund

Planned wage fund employees includes:

The wage fund of the institution's employees;

Bonus Fund;

Material Assistance Fund;

Fund for bonuses for high creative achievements, complexity and intensity of work, performance of particularly important (urgent) work;

Funds for indexation of wages in accordance with the Law of the Republic of Belarus “On indexation of income of the population taking into account inflation.”

The planned wage fund for full-time employees is determined in the following order:

Official salaries and wage rates of employees;

Permanent allowances;

Permanent surcharges.

The enterprise may have payments to employees who are not included in the wage fund. These include:

Severance pay in cases of termination of an employment contract or staff reduction;

Pension supplements;

Benefits paid to women on maternity leave;

Travel expenses;

Social insurance benefits;

Benefits issued to employees to repay loans received to improve housing conditions, and a number of others.

Sources of formation of the wage fund are funds for wages, included in the costs of production and sales of products, and the profit of the enterprise, directed to consumption.

The initial data for calculating wages for performing planned work (production) are:

Number of employees by staffing table;

Official salaries (tariff rates);

Additional payments provided for inclusion in the costs of production and sales of products and accepted at the enterprise, namely: additional payments for combining professions, expanding service areas, performing the duties of an absent employee.

Among payments for unworked time, the main place belongs to payment annual leave. The calculation of these payments is planned in accordance with the vacation schedule approved by the enterprise and the average salary.

Labor costs, social and other payments financed from profits allocated for consumption are calculated, as a rule, on the basis of the corresponding estimate only after calculating the total cost estimate for production and sales of products, where the projected amount of net profit can be determined.

To assess the stimulating role of wages and the efficiency of using funds for wages, their composition and structure are studied. For example, the composition of wages is divided into fixed and variable parts. IN permanent part includes funds paid for time worked or work performed, and variable part- all kinds of payments, additional payments, bonuses. As experience shows

According to its structure, wages are divided into two parts: main (fixed, basic) and additional (variable).

Main part of salary is calculated by multiplying the tariff rate with the specified types of allowances and bonuses by the time worked.

According to established practice in basic salary include its relatively constant part, paid for fulfilling an established labor standard or for performance results according to the main indicator characterizing the employee’s labor contribution (direct wages). For piece workers, this is payment by release for the actual products produced; for time workers - for the time actually worked, directly related to the manufacture of products, performance of work, services.

Additional part of salary - cash payments to employees that are not directly related to the work they perform, but are included in the wage fund (payment for vacations, preferential hours, various allowances).

Additional wages include payments provided for by labor legislation and wage regulations adopted by enterprises for time not worked in production (absenteeism).

Main types of additional remuneration

Employees of an enterprise, as a rule, work the same amount of time every day, but receive different remuneration for their work. This is because people have different physical and intellectual abilities. Labor can be simple or complex, more intense or less intense. Working conditions can also be comfortable or unfavorable, etc. All this makes it necessary labor differentiation and its individualization, as well as its payment, and is achieved with the help of certain complex systems that make it possible to differentiate wages.

Such systems are represented by a set of standards, criteria and conditions that make it possible to differentiate wages depending on the qualifications of workers, the nature and conditions of work, the importance of work for the enterprise, types of production, etc.

The most common in business practice are the following: systems: allowances and surcharges; premium.

Main purpose systems of allowances and surcharges consists of stimulating:

Improving employee qualifications and skill levels;

Long-term performance of labor duties in a certain area or field of production activity.

The payment of such bonuses is not associated with the assignment of new functions to employees beyond those determined at the conclusion of the employment contract. Of particular importance are premiums for high professional excellence. This type of allowance is established based on the role of each employee in the production process and the degree of influence of his work on the final results of the entire enterprise.

The criteria for an employee’s professional skill are most often:

Ensuring high quality of products;

Strict adherence to technological discipline;

Servicing critical areas and performing work of increased complexity;

Carrying out work in related professions and functions, etc.

Basic types of additional payments are presented in table. 1

Table 1 - Main types of additional payment

The following currently apply types of surcharges and allowances to tariff rates and official salaries: additional payments for working conditions, for work at night, for leading a team, for combining professions (positions), expanding service areas, for performing the duties of temporarily absent employees, allowances for professional skill, performing special tasks important works.

Additional payments for working conditions are produced in those workplaces where sanitary, hygienic and psychophysiological working conditions deviate from established standards. Working at different times of the day requires different amounts of energy from the employee. Night work is more tiring and less productive. considered nocturnal work time from 22 pm to 6 am.

Additional payments for night work are established by workers, foremen, production managers, and specialists. For each hour of work at night, an additional payment is established in the amount of 53% of the hourly tariff rate of the first category.

Enterprises can establish additional payments for workers working on assembly lines and production lines, for labor intensity in the amounts of 4, 8, 12% of the tariff rate. When determining the level of additional payments, the degree of labor intensity and the percentage of the worker engaged in active work during the shift are taken into account.

These additional payments are included in tariff payments and bonuses and other types of additional payments to wages are calculated on them.

Additional payments for team leadership are established taking into account the number of workers in the team in absolute amounts or in tariff rates of the first category. Thus, for leading a team of more than 15 people, the additional payment to foremen is set to 26% of the first-class tariff rate. For team members, surcharges are set at 50% of the corresponding surcharge for foremen. Additional payments are paid subject to the completion of established tasks and high quality of work.

Workers servicing technological equipment (repairmen, electricians, adjusters) can receive surcharges for service large quantity machine tools compared to standard standards. In this case, the worker's tariff rate increases by up to 1% for each percentage exceeding industry standard service standards.

Workers, specialists, and managers may receive additional payments in the amount of up to 50% of the tariff rate of the absent employee for performing, along with their work, the duties of temporarily absent workers.

Additional payments for combining professions occur when an employee, during the working day, performs work in another related profession along with his main one. In production, the main workers combine the performance of their duties with servicing their workplaces (setting up equipment).

Paid at production forced downtime that occur through no fault of the worker (lack of raw materials, equipment breakdown). A downtime sheet is issued for each type. Idle hours are paid at 2/3 of the worker's wage rate.

In some cases, due to production needs, employees may work and overtime, those. in excess of the monthly norm. With time-based wages, overtime work is paid for the first two hours at one and a half times the rate, for subsequent hours - at double the rate. When paying piecework, an additional payment is made in the amount of 50% of the worker’s tariff rate for the first two hours of work and in the amount of 100% of the tariff rate for subsequent hours of overtime work.

To work V holidays the work of piece workers is paid at double piece rates, and the work of temporary workers is paid at double the daily tariff rate. Managers and specialists are paid a single daily rate in addition to their salary. At the request of an employee working on a holiday, he may be given another day of rest.

According to the labor legislation of the Republic of Belarus, workers under 18 years of age have a reduced working day of 1 hour. However, wages are paid in full. The enterprise (firm) pays the employee additionally at the tariff rate for reduced work time.

Other types of additional payments may be established in production: for high professional skills, for work according to new progressive standards, for performing particularly important work. Their specific sizes are established taking into account the characteristics of production and the financial capabilities of the company.

The wage fund is the sum of cash payments at tariff rates, piece rates, salaries, bonus provisions (without incentive payments from profits) with all types of additional payments and allowances. The level of the wage fund largely determines the income of the enterprise's employees, production costs, prices, and contributions to social needs. Distinguish planned and actual wage fund. Plan Fund wages include only those payments that correspond to the normal organization of production and labor (Figure). Actual fund wages include payment for forced all-day downtime, additional payments for deviations from the working conditions provided for by technology, overtime, intra-shift breaks in work; payment for defects not caused by the worker.

Payroll planning is preceded by an in-depth analysis of the structure and dynamics of the actual staff payroll for the previous period.

There are four main ways planning the wage fund of enterprise employees:

Standard - according to the level of wages;

Standard - based on wage growth;

Standard - based on average wages;

Specified - for basic and additional wages.

Since in a market economy it is very difficult to accurately plan sales volume for the coming year, since it depends on market conditions, planned economic indicators have a certain degree of approximation. The normative method is an enlarged planning method that allows you to determine with a sufficient degree of accuracy the planned wage fund (PPF) of the enterprise’s personnel.

The planned staff wage fund for the next year can be calculated based on from the salary level in revenue from sales of the reporting year:

FZP = Planned sales volume x Standard salary level for the base year.

The second standard method of planning wages for an enterprise is by increase in wage fund taking into account the sales growth index.

FZPp = FZPb x (1 + Wage growth standard ∙ Sales growth index),

where FZPb is the wage fund in the base period.

TO normative methods planning the wage fund of an enterprise includes calculations by average salary. The simplest way is to multiply the average annual salary by the planned number of personnel. However, in conditions of inflation, the average salary of the previous month may differ significantly from the same indicator for the current month. Therefore, the average monthly salary of the previous month, taking into account the inflation forecast, can be used to plan the wage fund. This calculation method will be even more accurate if we take into account the planned growth rate of labor productivity and such an adjustment factor as the ratio of wage growth and labor productivity growth.

FZPp = Average annual salary of personnel ∙ Number of employees ∙ Ks ∙ Ki

where Ki is the inflation coefficient.

Refined method Payroll planning is used in the presence of an annual order portfolio and consists of the following:

1 Tariff wages are determined:

For piece workers - according to releases for the planned production volume;

For time workers - at hourly tariff rates and monthly salaries.

2 The basic salary is calculated by adding bonus payments to the tariff salary according to the current bonus provisions.

3 The hourly, monthly and annual wage fund is established based on the additional payments provided for in the collective agreement and labor legislation:

Additional payments up to the hourly fund for time worked and performance of additional duties or conditions: training students, for leading a team, for night work, for work on holidays, etc.;

Additional payments up to the monthly wage fund - for a shortened working day for nursing mothers and adolescents;

Additional payments up to annual fund wages - for planned absences from work (regular and educational leaves, performance of government duties, etc.).

Federal wages = Tariff wages + Bonuses + additional payments.

In addition to the wage fund, which is included in the cost of production, the enterprise may make bonus payments from profits (if this is provided for by the charter of the enterprise). In this case, when planning profits, a special fund is created (a consumption fund or a material incentive fund), an estimate for its use is drawn up, and the annual bonus amount for personnel is calculated.

One of the main issues that needs to be reflected in an employment contract is the issue of remuneration. Issues of remuneration are resolved directly at the enterprises. Their regulation is carried out locally normative act. However, wages cannot be lower than the minimum established by the state.

In all industries National economy Two forms of wages are used:

• - payment for the quantity and quality of manufactured products at established prices is called piecework;
• - payment for the amount of time worked, taking into account the qualifications of the employee, regardless of output, is called time-based.

The most common form of remuneration is piecework. It is used where quantitative and qualitative accounting of product output or volume of work is possible and production rationing is technically justified. For each unit of product or volume of work, a piece rate is established, which represents the amount of remuneration for labor. The price can be single or complex.

The piecework form of remuneration has its own systems: direct, piecework-bonus, piecework-progressive, indirect and lump sum. Under a direct piece-rate system, the earnings of each worker are proportional to his output and are defined as the product of manufactured or produced units of output.

The most common piecework wage system is piecework-bonus. In addition to earnings at direct piece rates, the worker is paid a bonus for meeting and exceeding established targets. Bonuses are determined for actual time worked based on piecework earnings.

With a piece-rate progressive system, remuneration for labor within the established initial norm (base) is made at direct piece rates, and in excess of this norm - at increased rates. The increase in piece rates is determined in each case on a special scale. For example, if the initial norm is exceeded from 1 to 10%, the piece rate increases by 50%, and above 10 - by 100%. The coefficient of increase in piece rate in the first case will be equal to 0.5, and in the second it is determined at double prices.

The surcharge under this system is set various methods. The most universal is the following: first, the part of earnings accrued at direct rates for the entire volume of work performed is determined, the resulting value is multiplied by the percentage of exceeding the production norm and by the coefficient of increase in piecework rates, taken in accordance with the current progressive wage system:

General = Z sd. + Z sd. (Pv.n. - Mon) / Kr. ,

where Ztot. - total earnings of a worker according to the piece-rate progressive system, rubles;

Zd. - piecework earnings at basic piecework rates, rubles;

Pv.n. - fulfillment of production standards, %;

Mon. - the initial base for accrual of profit, expressed as a percentage of fulfillment of production standards, %;

Kr - coefficient of increase in the basic piece rate.

The indirect piecework system is used to pay adjusters technological equipment, repairmen, assistant craftsmen and other auxiliary workers, on whose performance the productivity of the main workers depends.

The time-based form of remuneration can be simple and time-bonus.

When idle time system earnings depend on the tariff rate ( official salary) and the amount of time worked.

In industry, the time-based bonus system of remuneration mainly prevails, in which, in addition to earnings at tariff rates (salaries), a bonus is paid for achieving certain quantitative and qualitative indicators.

Remuneration for managers, specialists and other employees classified as employees is made according to time-based and time-based bonus systems. The procedure for calculating earnings is the same as for temporary workers, but the salary is set according to the staffing table. Managers, specialists, and other employees related to employees are rewarded for their main results economic activity from the consumption fund according to specific indicators established by the head of the association or enterprise in agreement with the trade union committee. Indicators of bonuses for teams of functional departments are closely linked with the final results of the enterprise and are established differentially for individual categories and groups of employees, taking into account the tasks facing it.

The conditions for the effective use of time-based wages are:

introduction of rational work and rest regimes for trade workers and strict recording of the time actually worked by each employee;

mandatory presence on every trading company schedules for going to work and time sheets for actual time worked;

timely review qualification categories or categories of employees;

application of the most rational labor cost standards;

approval in every organization, enterprise job responsibilities by categories of workers.

In economic conditions market type The leading place is occupied by the contractual system of remuneration. The level of remuneration is fixed in an agreement between employees and management, which can be individual or collective. In those sectors of the economy where the interests of workers are protected by trade unions, wage levels are determined under the influence of triple agreements, in which, along with employers and employees, representatives of trade unions also participate. .

It should be noted that in a market economy, the price of labor on the market work force is influenced not only by supply and demand, but also by a number of other factors; it can be influenced by profession, education, gender, age, regional factors, working conditions, traditions, legal restrictions, established rules and regulations. In particular, the amount of an employee’s salary is influenced by tariffs.

Contract - employment contract, concluded in writing for a period specified therein, containing features in comparison with the general norms of labor legislation and providing for specific minimum compensation for deterioration legal status employee.

The contract may be:

• § when hiring an employee;
• § with an employee whose employment contract was concluded on

indefinite term. At the same time, a change in essential working conditions - the conclusion of a contract is carried out in connection with justified production, organizational or economic reasons, about which the employee must be warned in writing no later than one month before the conclusion of the contract (part three of Article 25 of the Labor Code of the Republic of Belarus, from January 1, 2000 g. - Article 32 Labor Code The Republic of Belarus).

Contracts with pregnant women, women with children under 3 years of age (disabled children under 18 years of age), employment contracts with whom were concluded for an indefinite period, are not concluded unless they consent to the conclusion of such contracts.

The main function of an employment contract is that it creates an employment relationship. The subject of an employment contract is the labor force of a specific person. The concept of “labor force” is defined as the totality of a person’s physical and spiritual abilities. Although labor power is a commodity, it is inseparable from a person’s personality, therefore it does not become the property of the buyer, but is transferred to him for temporary use. Thus, from an economic point of view, an employment contract is a contract for the purchase and sale of labor, and from a legal nature it is a contract for the hiring of labor.

Another function of an employment contract is This what it serves legal form organization of labor at enterprises, institutions, farms. Through an employment contract, the distribution of labor in production is determined and distributed job responsibilities personnel.

In addition to the fact that an employment contract gives rise to labor relations, it regulates them further development. Changing the terms of the contract entails changing the rights and obligations of its participants, and its termination means the termination of labor relations.

In addition to the conditions established by law, there is a range of issues determined by agreement of the parties. The method of individual contractual relations allows us to better take into account the personal characteristics of the employee and specify his work responsibilities.

The content of the agreement constitutes the entire complex of conditions defining the mutual rights and obligations of the parties. Some terms of the employment contract are established labor legislation. Many terms of an employment contract are strictly regulated by law, and the parties cannot change them if the employee’s position worsens as a result, even by mutual agreement. If the condition of the contract completely coincides with the norms established by law, then it is possible not to duplicate the legislation and not to indicate this condition. But it is necessary to consider all the terms of the employment contract, since the parties may not be aware of the existence of rules that nevertheless apply and regulate their relations.

The employer can change the majority established by law norms towards improving the employee’s situation. Of course, in this case, the terms and conditions defined by agreement between the parties must be clearly stated in the employment contract.

The conclusion of a specific contract usually begins with an offer to conclude it - the direction of the offer. The offer must contain the main terms of the proposed transaction. Acceptance of an offer by the other party is considered acceptance (consent). The exchange of documents between the parties can occur through postal, telegraphic, teletype, fax, electronic or other communications that make it possible to reliably establish that the document comes from the party under the contract.

Contractual relations can also be established by submitting a draft contract to one of the parties. Having received the draft, the other party reviews it and, if there are no objections, signs it. One copy of the contract is returned to the party who drafted the project.

When drawing up contracts and their conclusion, special attention should be paid to:

• - clear formulation of the rights and obligations of the parties;
• - the possibility of termination of the contract by either party;
• - sanctions to each of the parties for failure to fulfill obligations;
• - compliance of contract clauses with the Law “On Protection of Consumer Rights” and other legislative acts;
• - compliance with signatures, seals, dates, legal addresses.

When specifying the contract price, it is necessary to follow the requirements of the law, which stipulate that monetary obligations must be expressed in rubles. Mention of other currencies is allowed, but only in the wording “payable in rubles in an amount equivalent to the amount in foreign currency.” Failure to comply with this rule will result in the agreement being declared invalid.

The components of the contract are:

• - name of the type and title of the document (purchase and sale agreement, contract for the supply of consumer goods, contract for technical assistance):
• - date, number, place of compilation;
• - names of the parties (full names of organizations);
• - subject of contract;
• - conditions and terms of delivery, transportation, storage, packaging, labeling, advertising and sales;
• - terms and conditions of payment, features and payment procedure;
• - procedure for delivery and acceptance of completed work;
• - responsibility of the parties;
• - guarantees, insurance and force majeure;
• - transfer of ownership and risks;
• - settlement of disputes;
• - legal addresses of the parties (indicating postal addresses, bank details, telephone numbers, faxes);
• - signatures officials(indicating positions, transcripts of signatures and dates of signing of documents);
• - seals of counterparty companies.

Contracts (agreements) refer to documents that are the most important evidence in an arbitration court in the event of disputes or disagreements. They must be designed impeccably. The signatures of the parties to the contract must be legible so that the author of the signature can be clearly identified. If the text of the contract is drawn up on several sheets, they must be numbered and stitched. In some cases, each sheet of the agreement is signed in order to exclude statements by unscrupulous partners that they are not familiar with this or that sheet.

You should use fax communication when signing a contract very carefully, especially with new contractors. The exchange of facsimile contracts occurs only when the parties have been cooperating fruitfully for a long time. In the arbitration court, great importance is attached to the original signature and blue (purple) seal on contracts.

To avoid possible loss or theft, it is best to store the original copy of the contract in a safe, and use a photocopy of the document for routine work.

Commercial contracts (agreements) are stored for 5 years after the expiration of the contract or fulfillment of its terms.

Contracts with foreign partners, taking into account the difference in limitation periods in other countries, should be kept for at least 10 years. The contract is for a large amount or having important can be transferred for archival storage.

28.08.2019

The contract wage system is one of the types of payroll.

Its distinctive characteristic is that for its approval, an agreement is concluded between the parties to the employment relationship, the duration of which is limited.

How salary is calculated using this form, when it is convenient to use it - read about it in the article below.

What is it - concept and features

The need to create such a form of calculating the income of working citizens was due to current conditions market economy. The contract system involves tracing a clear relationship between the quality of obligations performed by an employee and the method of payment for them.

The amount of salaries and various additional payments in this case is determined by the employer independently. This rule is regulated by Article 135 of the Labor Code of the Russian Federation.

The contract must include the following points:

• features of production conditions;
• rights and obligations of both parties to the contract;
• internal procedures of the company;
• the applied remuneration system;
• period of validity of the document;
• responsibility of the parties to the labor relationship.

When drawing up a contract or agreement, certain characteristics are taken into account, which determine the conditions for calculating wages. These include the following factors:

• the citizen’s personal interest in work;
• level professional qualifications potential employee;
• the degree of additional burden placed on the employee.

Agreements of this nature are usually of a fixed-term nature. Their validity period varies from 1 year to 5 years.

Thanks to the contractual system of remuneration, the company's management identifies and retains the most valuable employees.

It is the employer's responsibility to set the minimum wage - salary.

Contract form implies the payment to an employee of an enterprise of various monetary additional payments and allowances due to him for high quality work. This point must be set out in detail in the concluded agreement, which is drawn up when a citizen is approved for a position.

How to calculate wages?

The final level of wages under the contract wage system is directly influenced by the KTU coefficient labor participation. This indicator is determined by assessing the achievements of employees.

KTU is used in organizations where teams operate. The size of this value is influenced by the amount of time worked by working citizens and the level of training of each employee.

The technology for determining the coefficient is not reflected in the Legislation of the Russian Federation. In connection with this, the algorithm for finding it must be established by the employer and approved by a collective agreement. In this case, a condition must be met - the rules for calculating it must not contradict the norms of the Labor Code of the Russian Federation.

KTU can range from 0 to 2. The larger this value, the higher the employee’s salary.

With a contract wage system, the salary that the employee will receive in any case is established. The amount that will be added to the fixed amount depends on the quality of his work.

Salary when using KTU can be calculated in several ways:

• The money intended to pay the wages of all employees of the company is divided by the number of employees. After this, the obtained value is adjusted depending on the value of the CTU;
• working citizens are paid a fixed salary and an amount calculated taking into account the KTU.

In what cases is the contract form used?

The contract system can be installed in any organization, so it has become widespread in all sectors of activity.

The contractual methodology is especially in demand in the service sector.

For example, it is often used in private clinics, where medical care is provided by highly qualified specialists.

The contract can be concluded with employees of management positions, employees narrow specialties etc.

IN government institutions This remuneration system is used to retain specialists with extensive work experience and a high level of qualifications.

Examples of professions

Contracts can be concluded with specialists working in almost any field of activity. At the same time, the contract form of wage calculation is most often used in relation to professions that differ in the following characteristics:

• creativity;
• problematic establishment of clear rules for performing job duties;
• the presence of a direct connection between the implementation of work and the result of work activity;
• the need to achieve a specific goal within a limited amount of time.

Advantages and disadvantages

The contractual system of this type has a number of features and characteristics. Among the positive ones, the main one is a clear distribution of employee responsibilities. By establishing such a methodology for determining wages, the employer increases the level of productivity of the enterprise.

By working in this way, citizens themselves can change their income in better side. Specialists with a high level of professional qualifications can use the contract system as additional view earnings.

The main disadvantage of contractual technology is the high risk of dismissal.

If a working citizen does not fully or inappropriately fulfill his obligations, the employer has the right to terminate the employment contract with him unilaterally.

Useful video

What you need to know about the contract payment system: