5 things to check before signing an employment contract

Thinking about signing that new job contract? Hold on a second! Before you put pen to paper, it's crucial to have a clear understanding with your new employer about what's expected from both sides. A written contract isn’t just a formality—it's an outline of your responsibilities, your job security, and what your employer is accountable for.

Every job is different, and so are the contracts. That's why it's important to carefully review the key details before you sign. Overlooking something now could lead to misunderstandings later.

To help you start off on the right foot, here are five essential things you should double-check in your employment contract.

1. Job title and duties 

It's crucial to ensure that the job title and duties in your employment contract align with the original job description. This clarity helps prevent misunderstandings down the road.

If you find discrepancies between the stated responsibilities and what's expected, address them before signing. This proactive step avoids future conflicts and ensures a smooth start to your new role.

If the job duties differ significantly from what you applied for, discuss these differences with the hiring manager or HR. If the changes don't fit your skills or work ethic, make sure to communicate this before finalising the contract.

2. Salary and benefits

Ensure the remuneration package in your contract matches what was promised in your offer letter. Check the payment methods and salary release dates for accuracy.

Many companies offer comprehensive benefits packages for permanent employees. These may include pensions, healthcare insurance, and other perks. Additionally, you may be eligible for bonuses as part of your new role. Understanding these details ensures you get the full benefits of your employment.

Here are some items to look out for when reviewing your compensation package:

• Salary and payment schedule: Ensure the salary amount and payment frequency are correct.
  
  
• Bonus structure: Clarify if bonuses are part of your compensation and how they are calculated.
  
  
• Health insurance: Check the details of any healthcare benefits, including coverage and providers.
  
  
• Pension plan: Understand the terms of any pension plan, including contributions and vesting periods.
  
  
• Other benefits: Look for additional perks such as paid time off, flexible working arrangements, and professional development opportunities.
  
  
• Contract duration and terms: Note the length of the contract and any clauses regarding termination or renewal.
  
  
• Tax implications: Be aware of any tax responsibilities or benefits associated with your package.

3. Start date and working hours

If you're switching jobs, make sure the start date for your new job doesn't overlap with your last day at your current job. It's important to have enough time to wrap things up before moving on.

Once you've confirmed your start date, carefully review the working hours outlined in your job contract. If you're a contractor, you might have the flexibility to set your own hours, giving you greater control over how much time you dedicate to the company. For full-time employees, ensuring that the working hours fit your role and expectations is key to maintaining productivity and reducing stress.

If your new company offers remote work or flexible working options, review these details carefully. Check if there are specific core hours when you need to be available, or if you have the flexibility to create your own schedule. Look for any requirements about logging your hours or reporting your location, and confirm whether you need approval to work remotely on a regular basis.

Understanding these terms upfront will help you effectively balance your work commitments with personal needs and avoid any misunderstandings later.

4. Holiday pay and sick leave 

As with any job, it's essential to take regular breaks once you start. Before signing your contract, check how many days and hours you're allotted for holidays. Also, look for any restrictions, such as specific times of the year when holidays can be taken.

Sick leave is usually governed by local laws, so be sure to understand the terms, including how payment works during holidays and sick leave.

For contractors, the employer may not provide benefits like sick leave or health insurance. You will typically receive only the agreed-upon payment for your services, and any additional benefits must be arranged independently.

5. Restrictive covenants

Restrictive covenants, or restrictive clauses, are contract terms designed to protect an employer's business interests, employees, and clients. They typically come into play after your employment ends, not during your tenure.

Understanding and reviewing these terms carefully before signing your contract is important to ensure they won't restrict your future career prospects. Common types of restrictive covenants include:

• Non-compete clause: This clause restricts the employee from working with or starting a competing business within a specific geographic area and timeframe after leaving the current employer.
  
  
• Non-solicitation clause: This prevents the employee from soliciting or approaching clients, customers, or employees of the former employer to leave the company or switch their business relationships.
  
  
• Non-dealing clause: This clause prohibits the employee from conducting business with the former employer’s clients or customers, even if those clients initiate contact, for a certain period after employment ends.
  
  
• Non-poaching clause: This restricts the employee from hiring or attempting to hire colleagues or employees away from their former employer, usually to work for a competing business.

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