Shortening options - example 1
Scenario
A contract started on 1 Jan 2025 and has a duration of five years. The contract is active, but you want to reduce its duration by two years.
The following settings are used:
Contract
Field | Field value |
|---|
Start date contract | January 1, 2025 |
Duration | 5 years |
Notice term | 3 months |
Proposed termination date | December 31, 2029 |
Shortening option
Field | Field value |
|---|
Description | Shorten by 2 years |
Ultimate notification date | December 31, 2027 |
Brought forward contract end date | December 31, 2027 |
Applying the shortening option
Set the shortening option status to Applied.
The Proposed termination date is updated to the same date as the Brought forward contract end date (31 Dec 2027). The contract status remains Active.