These terms are often used in business and the law, but many people are unsure of what they actually mean and what is the difference. In this article we will explain meaning and implications of publishing date, valid date, effective date, start date, termination date. We will also explain how it affects your policies or contracts and other legal documents. Finally, we will look how you will use it in Aptien contract management and Policy portal to help provide further clarity on the topic.
General concept of dates in legal documents
Contracts, agreements, policies, manuals, procedures and other legal documents are time-framed. At the same time all legal documents establish the obligations of people or legal entities to act in a certain way, to behave, to have obligations arising from the documents. The time period is important to frame these obligations or behavior and that is why various dates must be defined. The date must be also connected to certain versions of the document - to be clear which content (which may be different in different versions) is in place.
- Content: a version with particular content of the document is important
- Parties: Document is always intended for someone - people, companies, contracting parties - someone who is bound by the document
- Access: Document must be available and accessible to read to these parties that is why we speak about the publication - so people can read it in its official, final version and content.
- Validity period: Legal document must be binding in some time-frame, usually becomes effective (or valid) on the date on which people and processes must act and be governed by it until it becomes archived, invalid, terminated.
Company policy or work procedures documents
The difference between a valid document and an effective document is when people or processes have to follow it.
- Document becomes published when available for parties, so people can read it in its official, final version and content.
- Document becomes effective or valid on the date on which people and processes must act and be governed by it, when it takes effect
For example, a particular company policy is effective (valid) from January 1, the date on which it must be followed, but has been published and available since November 1. From this time, employees can familiarize themselves with it.
Contract law documents
Contract and agreements means any document between two or more parties such as service contracts, employment agreements. All these business agreements, contracts or transactions are documented with effective dates, which are the times when parties to the contract begin their obligations to perform under the contract.
Validity period
- Is the period of time during which a contract is intended to be effective and valid
- It is the period of time between the start date and time and expiration, termination or end date and time of a contract
Effective date
- Parties to a contract usually need to agree on an effective date before a contract is signed
- In contract documents, the effective date is the date that an agreement or transaction between or among signatories becomes binding
- An effective date is the date on which a policy, contract, or agreement takes effect.
- Usually effective date should officially begin on the date of signing, or it is the date stated in the contract (if it varies from date of signing). In this case a future date or already passed date
Start date
- In some cases, an effective date and start date may be the same. But sometimes there may be a gap between the two dates.
- Start date means the date on which something begins.
- Start date is that an effective date is typically set in advance, while a start date may be more flexible.
- For example, if you are signing an employment contract, the effective date may be the day you sign the contract. But the start date might be several months later, the day you start onboarding.
Expiration Dates
- some contracts have an indefinite period, some contracts exactly specify the date of termination or expiration
- this is the date on which obligations for parties ends
How to set date of validity of contracts and agreements
- All basic dates of validity you set in contract organizers
- For employment contracts you set the dates in HR (Employee agreements)
How to set date of validity of company procedures
- Information about the date of validity and effective date of company procedures and policies is important for employees and management of the company.
- Employees find this information on the company policy portal.
