This guide outlines what you should be looking out for in your employment contract before you sign it.
A contract of employment is more than just a formality; it is an essential document that outlines the terms and conditions of employment, protects both the employer’s and the employee’s interests, and contributes to creating a transparent and positive workplace culture.
Employment contract inclusions to check
In this article, we will go over the essential components that should be included in these documents.
Job Title and Description
Ensure that the position you’re applying for is a suitable fit by checking the description and title. The words that come after “Job Title” or “Job Description” in your agreement should explain your main duties, your mission, and who you report to in a more detailed manner.
If you want there to be no surprises when you start and continue working on your job, it’s important to be specific when describing it. You can also seek legal advice from an experienced employment lawyer.
Duration and Termination
An essential first step is to formally determine the duration of your employment contract. Ensure the duration clause specifies whether the employment is temporary or permanent, the dates of your start and end, and any probationary periods that may apply.
Any party to the contract should be able to easily understand the termination clause. It should spell out the circumstances under which either party can end your employment and the notice periods that each party is required to give.
Holiday Pay and Sick Leave
After you start working, it’s just like any other job: you need to take breaks. Verify the vacation and holiday policies before signing the employment contract to ensure you have enough time off. Additionally, note any limitations, such as off-peak vacation periods, if applicable.
Your complete familiarity with the terms, including the treatment of payment during sick leave and holidays, is critical, as sick leave is typically regulated by local laws.
Employers may choose not to offer benefits like health insurance or paid time off to independent contractors. You will usually receive the agreed-upon payment for your services and must arrange any extra benefits.
Working Hours
An employment contract that specifies your permitted working hours is required to ensure that you are entitled to the hours that your employer promised during negotiations.
Different companies give their workers more freedom to plan their schedules. Some employers require set hours, such as from nine in the morning to five in the afternoon. Some employers even give employees the freedom to choose when they work best.
Some companies offer flexible scheduling policies that allow employees to choose between shorter and longer shifts on certain days.
We recommend that you obtain written consent from an employer who has promised you the freedom to work your hours. It may be worthwhile to discuss with your employer the absence of any provisions governing your working hours in an employment contract that you are currently reviewing.
Training and Development
Contracts involving engineering, healthcare, information technology, or manufacturing frequently include this element; however, it is also a useful addition for other positions.
Training and development programs are frequently thought of as an employee benefit, but they also provide a significant business advantage: they increase productivity and performance.
Restrictive Clauses and Confidentiality
Make sure you understand your confidentiality obligations and review any restrictive clauses that may be applicable after the termination. Make sure you fully grasp any Non-Disclosure Agreements (NDAs) or Non-Competition Agreements (NCAs) that may be in place; these can severely restrict your ability to work for other companies in the future and place strict restrictions on how you can handle sensitive information.
Death and Disability
It is only fair to terminate the employment contract when the employee dies or becomes permanently disabled. It is important to specify in the contract how long the employee’s employment will continue after a certain disability has been met (for instance, thirty days). Furthermore, the contract should specify how much money goes to the employee’s estate in case either of those things happens.
Intellectual Property Ownership
Always read the employment contract fine print before signing to ensure that intellectual property (IP) and proprietary rights are addressed. Intellectual property refers to the products of creative thinking.
Contracts requiring technical or creative skills frequently include intellectual property clauses. These provisions protect the employer’s intellectual property.
Do not quit your job simply because your contract includes an intellectual property clause; it is common for employers to own their employees’ work. However, before you start working, ensure you thoroughly review the fine print for any intellectual property clauses to fully understand your obligations.
Severance Pay
If you were eligible for severance pay or other benefits when your employment contract ended, you can find that information in the severance pay section. If you are let go from your position due to circumstances beyond your control, such as redundancies brought on by a major company transformation, a merger, an acquisition, or the closure of a site, you will be compensated in addition to your salary.
Conclusion
By checking all the inclusions listed above, you can ensure your employment contract is sound and covers the factors you need. Then you can sign and start work with more peace of mind, knowing your rights and obligations are covered.