When you are offered a job, the next step is usually to sign an employment contract. This document spells out the terms and conditions of your employment. It is important to read and understand the contract before signing it, as there may be clauses that are unfavorable to you. In this blog post, we will discuss 11 things to consider before signing an employment contract.
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An employment contract is important because it protects both you and your employer in the following ways:
When considering whether or not to sign an employment contract, here are some things to keep in mind:
By taking the time to read and understand an employment contract before signing it, you can avoid any unpleasant surprises down the road. If you have any questions or concerns, don’t hesitate to talk to your employer or a lawyer.
The job title and job description in the contract should match what you were offered during the interview. The Job Title and Job description may affect your current and future pay grades, benefits and career growth in the long run. Beware of synonyms and discrepancies that one may consider negligible like Manager for Supervisor or Lead – These slight changes my tag along changes in roles, responsibilities and maybe tagging benefits which you may not have interviewed or knowingly signed up for.
If there are any discrepancies, it is important to bring this up with your employer before signing the contract.
The salary and wages in the contract should also match what you were offered during the interview. One may want to be clear especially on the net or take-home figue as the gross income may not necessarily reflect the “net income.
The contract should also state the frequency of pay or how often you will be paid (e.g. weekly, bi-weekly, monthly) and the date of your first pay check.
If you are not happy with the salary and wages offered in the contract, you can negotiate with your employer. However, keep in mind that your employer may not be willing to negotiate, however cyou need to be clear and agreeable to what you are signing up for.
The contract should state what benefits you will be entitled to. This could include health insurance, evacuation insurance, pension, housing allowance, transport allowance, security guard, airtime and other additional benefits.
Make sure that you are aware of what benefits you will be receiving and whether there is a waiting period before you start receiving these benefits.
If you are not happy with the benefits provided in the contract, you can negotiate with your employer.
The employment contract should state the duration of your employment. This could be a fixed-term contract (e.g. one year) or an indefinite contract.
If you have a fixed-term contract, make sure that there is an end date in the contract and that it is clear when this date will be reached. It may be wise to request that any warranties and promises with regards to extension or renewability of your contract be contained in the contract, this bot manages and protects each party’s expectation during and after the term of the contract.
If you do not want to renew your contract, make sure that you give your employer enough notice so that they can find a replacement.
If you have an indefinite contract, make sure that there is a clause in the contract that states how either party can terminate the contract.
The contract should state what bonuses you are entitled to, and the conditions for receiving such bonuses.
It should also state the parameters for promotion and internal progression. This will give you an idea of when you can expect to be promoted and how far up the ladder you can go with your current employer.
However, in the event, such is covered in laid down internal processes and policy papers, the same can be substitutable to contractual inclusion for an established organizations. That said, one can always negotiate for preferential terms anytime before signing on the dotted line.
The contract should state the working hours for your position. The contract may specify that you are required to work a certain number of hours per week, or it may say that you are required to work overtime as needed. There is need to specify when and under which terms does overtime kick in.
The contract should – if need be outline reporting time and break/meals times. However with the hybrid working tends and flexi hours, this can be dispensed with by quantifying the number of hours per day or week.
If the working hours in the contract are different from what you were offered during the interview, you can negotiate with your employer.
The contract should state the location where you will be working. The contract may specify that you will be required to work at a specific office or branch, or it may say that you can work from home.
The location and place of work will determine your commute distance and the cost implication of such a commute. Further, the place and mode of work will be indicative of whether there is need to relocate and/or whether the job offer is worth accepting.
The contract should state how many sick days you are entitled to per year, and whether these days are paid or not. It should also state how many maternity leave days you are entitled to, and whether these days are paid or not.
Some employers and employment arrangements provide for compassionate leave, paternity leave and adoption leave. It is important to check if these are included in the contract.
If you are not happy with the sick, maternity and paternity leave provided in the contract, you can negotiate with your employer.
Though sometimes covered in law and other negotiated instruments, there is no harm in having such terms in the employment contract for certainty. Equally, the law and negotiated instruments only provide minimum thresholds meaning you can always negotiate for better than the bare minimum.
Restrictive Covenants are clauses in the contract that restrict your ability to work for a competitor or start your own business after leaving your current employer.
Before signing the contract, make sure that you are aware of what restrictive covenants are included in the contract and whether they are favorable to you or not. If you are not happy with the restrictive covenants in the contract, you can negotiate with your employer.
Employees are often required to sign a confidentiality clause stating that they will not reveal any confidential information about their employer.
Employees are often required to sign a non-compete clause stating that they will not work for a competitor for a certain period of time after leaving their current employer.
Employees are often required to sign a non-solicitation clause stating that they will not solicit customers or employees from their current employer.
Though some restrictive covenants have been annulled by judicial pronounciation; it is wise to err on the side of caution and seek clarification, variation and/or deletion of any unreasonable restrictions.
By some reason, invalidity or operation of law, some clauses in the contract may become void. In such a case, the remaining clauses in the contract will still be valid by reason of a severability clause.
Before signing the contract, make sure that you are aware of what severability of clauses are included in the contract and whether they are favorable to you or not. If you are not happy with the severability of clauses in the contract, you can negotiate with your employer.
If any clause in an employment agreement is invalid, it does not mean that the entire agreement is void. The remaining terms and conditions in the agreement will continue to be valid.
As in any agreement, disputes and adjudication therefore is an possible eventuality.
The contract should state the dispute resolution mechanism and the applicable law. This will help to resolve any disputes that may arise between you and your employer.
Make sure that you are aware of the dispute resolution mechanism and the applicable law before signing the contract. If you are not happy with it, you can negotiate with your employer.
Disputes between employers and employees are common. It is important to have a clear dispute resolution mechanism in place so that these disputes can be resolved quickly and efficiently.
The contract should also state the applicable law. This will help to resolve any disputes that may arise between you and your employer in a timely manner. Applicable law and jurisdiction will not only determine the turf on which your disputes will be adjudicated but also the cost of dispute resolution, time and legal framework.
The termination clauses in the contract specify how either party can terminate the contract. The termination clauses should be fair to both parties.
Further, termination clauses may contain benefits upon termination and other tagging rights and benefits which may be important to include in the contract.
Termination clauses should be certain and with a sense of reasonable mutuality, clear reasons, due process, and record. Notably, summary and unfair termination is well covered in law and judicial precedence but there is no harm in codifying the same in an employment contract or even varying such legal provisions to your advantage.
Once you have signed the employment contract, make sure to retain a copy for your records. This will come in handy if there is a dispute with your employer about the terms and conditions of your employment.
When you sign the employment contract, make sure to initial each page over and above the signing page. This will show that you have read and understood the contents of the contract. This can as well be a measure against plucking or insertion of pages after signing especially contentious clauses in the event of a dispute.
When you are offered a job, the next step is usually to sign an employment contract. This document spells out the terms and conditions of your employment.
It is important to read and understand the contract before signing it, as there may be clauses that are unfavorable to you.
In this blog post, we have discussed ten things to consider before signing an employment contract. If you are not happy with any of the clauses in the contract, you can negotiate with your employer.
Disputes between employers and employees are common, so it is important to have a clear dispute resolution mechanism in place.
Make sure to retain a copy of the employment contract for your records. Signed, dated and initial each page over and above the signing page.
