How To Fix HRPSGB_ME256 - A director is not allowed to hold more than one contract

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPSGB_ME - Multiple Employment Errors & Warnings

• Message number: 256

• Message text: A director is not allowed to hold more than one contract

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message HRPSGB_ME256 - A director is not allowed to hold more than one contract ?

  The SAP error message HRPSGB_ME256, which states "A director is not allowed to hold more than one contract," typically occurs in the context of managing employee records in the SAP Human Capital Management (HCM) module, particularly in the UK payroll and personnel administration settings.
  Cause:
  This error arises when an attempt is made to assign multiple employment contracts to an individual who is classified as a director within the SAP system. In many jurisdictions, including the UK, regulations may stipulate that a director can only have one employment contract at a time due to legal and compliance reasons. The system enforces this rule to prevent any potential legal issues or conflicts of interest.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Review Current Contracts: Check the employee's current contracts in the system. Ensure that the individual does not already have an active contract as a director.
  
  
  Terminate Existing Contract: If the employee does have an existing contract, you may need to terminate that contract before assigning a new one. This can be done through the appropriate personnel administration transaction (e.g., PA40 for personnel actions).
  
  
  Change Employment Status: If the employee should not be classified as a director anymore, consider changing their employment status or role in the system.
  
  
  Consult with HR: If you are unsure about the implications of terminating a contract or changing an employee's status, consult with your HR department or legal advisor to ensure compliance with local laws and regulations.
  
  
  System Configuration: If this error is occurring inappropriately (e.g., if the employee should be allowed to hold multiple contracts), it may be necessary to review the configuration settings in the SAP system. This may involve working with an SAP HCM consultant to adjust the rules governing director contracts.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes or documentation that may provide additional context or updates regarding this error message.
  Legal Compliance: Be aware of the legal implications of employment contracts for directors in your jurisdiction, as these can vary significantly.
  User Training: Ensure that HR personnel are trained on the policies regarding director contracts to prevent similar issues in the future.
  
  By following these steps, you should be able to address the HRPSGB_ME256 error effectively.