Policy: Legal-financial aspects of work contracts

Legal aspects

Every individual associated with Future Worlds Center has to comply with the organization's principle of full commitment and devotion. The organization considers its associates as committing their full time and effort to their projects even when their respective paid number of hours are less than 140 hours per month

Individuals directly hired by the organization are considered and treated as employees of Future World Center, however every associate is reponsible for paying their own social insurance and other related taxes required by Cyprus law since these amounts are included in their income provided by the organization. The implemented principle maintains the social entrepreneurial character of the organization, therefore encouraging the associates to feel and behave repsonsibly for their own benefits.

Each individual receiving income from the organization should sign and possess copy of the following work related documents:

• Nondisclosure Agreement
• Honour Declaration
• Confidentiality Agreement
• Gentlemen's' Agreement: considered as a welcoming letter referring to a minimum monthly payment without contractual bond
• Working Contract: specific project-task related contract

Financial Aspects

Productive Hours

Due to the fact that every associate is directly hired to fulfil certain project activities, every hour reported by the associate and therefore paid out is considered productive. Nevertheless, there is an established maximum number of hours in a year that can be charged to the organization, unless the Board decides under specific circumstances otherwise. The maximum annual productive hours of associates are calculated as follows:

1. Calendar days per year minus weekends: 260 (52 weeks * 5 days per week)

2. Allowed Annual holidays (in n° of days): 5

3. Recognized Statutory holidays (in nº of days): 15

4. Others (i.e. illness etc.) (in n° of days): 0

5. Productive days per year (1.-2.-3.-4.): 240

6. Working hours per day: 7

7. Annual working hours (1.* 6.): 1,820

8. Productive hours per year (5.* 6.): 1,680

9. Productive hours per month: 140

Although the productive hours calculation is unified for the whole organization, the calculation of the personnel cost can be vary per project due to the different time commitment definition applied by the funding organization such as in European „Commission programs.

Personnel cost based on Man-month

In case of projects defining staff involvement as certain man-month, every hour reported by the Employee/Service Agreement (self-employed individual) is considered as productive hours, therefore is subject to payment in compliance with the Employee/Service Agreement.

Personnel cost based on % of time

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

• The associate devotes a minimum of 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 extraordinary situations in which an associate is constrained in delivering his/her tasks due to unexpected obstacles, and the monthly productive hours fall below the 30% of the expected average for more than 3 consecutive months, Future Worlds Center has the right to terminate the contract.

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

Rates

Due to the fact that Future Worlds Center associates are self-employed and directly hired to implement specific project tasks, the rates budgeted in the corresponding Grant Agreement with the funding organization for which they are hired is used for calculation of their remuneration.

Monthly payment

In order to release project payments (typically on a monthly basis), every associate has to submit timesheet showing the actual hours spent on each and every project (or project task) 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 the definition of the productive hours set in the Employee/Service Agreement. Release of project payments on account can take place upon the request of the associate, but the circumstances must be recorded on the Contract Amendment.