Shortening options - example 2
Scenario
A contract started on 1 Jan 2025 with a duration of five years. A renewal option of five years has been applied, extending the contract duration to ten years. The contract status is Renewed. You want to reduce the contract duration by four years.
The following settings are used:
Contract
Field | Field value |
|---|
Start date contract | January 1, 2025 |
Duration | 10 years (after applying the renewal option) |
Notice term | 3 months |
Proposed termination date | December 31, 2034 |
Shortening option
Field | Field value |
|---|
Description | Shorten by 4 years |
Ultimate notification date | December 31, 2030 |
Brought forward contract end date | December 31, 2030 |
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 2030). The contract status remains Renewed.