27 Nov 2018
New niloAGENT feature – severance pay, non-disclosure agreement
Using the niloAGENT system, it is now possible to manage both a simulation and a real calculation of severance pay, including issuing a severance pay invoice and all related settlements and compensations in case of employment termination.
The system offers calculations both for a calendar year and for twelve months preceding the resignation notice.
Based on values and data entered into niloAGENT, calculations are performed automatically in accordance with relevant laws, free of interpretations and manageable with configuration parameters.
The system’s feature Termination of employment allows the employer to not only send a termination notice including severance pay information, but also manage the following based on previously entered data:
- Invoices and receipts, with the option of them being issued either separately for each severance package item or together in a single document, with the items specified within.
- Accurate calculation of VAT, payments and contributions in relation to severance fee.
- Entry of a link to relevant laws (if the termination is based on a court ruling)
- Entry of a possible severance fee
- Entry of up to three severance fee items with custom descriptions
- Printing invoices (receipts) and their delivery to sales agents through email or publishing in the system (link)
- Archiving documents into the invoice archive • Exporting invoices to accounting software
The structure of the niloAGENT software allows for a dynamic management of obligations in the case of employment termination. The user can individually set parameters in the case of updating collective agreements or tax law or its interpretation by the company being changed:
- % inflation • VAT rate
- VAT applicability to severance pay
- Social security payments rate percentage • Payment applicability to severance pay
- Type of tax deduction applicable to severance pay
- Tax deduction applicability to severance payment
- Time period for the calculation (calendar year, employment start date etc.)
In addition to this, the system can simulate a termination, displaying the possible severance and the amount to be stored in the relevant reserve fund in accordance with applicable legislation.
In accordance with applicable legislation, it is possible to sign a non-disclosure agreement. The law dictates the agreement to be in writing, with a maximum term of two years, limited to the location where the company operates, its customers and the same type of products and services specified in the original employment contract, with the sales agent being entitled to adequate compensation.
NiloAgent allows the user to:
- calculate the severance fee automatically based on historical records in the database
- print the termination notice with the severance fee included.