Starting a job, discovering your responsibilities, and meeting your colleagues can feel like a refreshing new chapter in life. However, getting used to a new employer can also feel rather daunting, especially if you don’t know what to expect.
Thankfully, you should have the most essential details laid out in your employment contract. This being said, many employees rarely bother to examine the clauses in their contract or read the fine print. Employment contracts can vary significantly, and refusing to take a closer look can result in long-term implications.
In this blog post, we will highlight five important signs that you should be wary of before signing a new employment contract.
Unfavourable Termination and Notice Periods
Most jobs ask employees to hand in a notice before they decide to leave. This helps employers find a replacement, but it can also hinder employees when it comes to exploring new opportunities. Look for a reasonable notice period that will suit your needs. Similarly, you should seek clarification about grounds for termination and whether they offer severance packages.
Intellectual Property Clauses
Certain companies include intellectual property clauses in their contracts. This could restrict your ability to work for competitors in the industry even after you leave the company. Although organisations want to protect their intellectual property, safeguard their client relationships, and conceal trade secrets, this could put you in a tough spot.
Unclear Job Responsibilities
Having a clear understanding of your job and responsibilities is of the essence. Not only will this help you flourish in your position, but it can also avoid any potential misunderstandings, conflicts, or job dissatisfaction. Make sure that your contract clearly states your job title, specific duties, and reporting structure.
Inadequate Dispute Resolution
Another important factor to consider when reviewing your employee contract is the section pertaining to dispute resolution. Some contracts mandate arbitration or mediation as the sole means of dispute resolution, which could affect your ability to seek legal assistance in certain scenarios. If you’re unsure of how to proceed with this clause, we suggest you seek out help from professional such as HKM attorneys as it could affect you in the future.
Improper Compensation or Benefits
If your employer promised you an attractive benefits packages, salary, or bonus during the hiring stage, ensure that this is clearly outlined in your contract. Similarly, you should ensure any performance-based incentives or commission structures are outlined in your contract. This will help smooth out any potential discrepancies between the interview discussion and what is firmly stated in the employment contract.
We hope our tips have empowered you to make informed decisions and protect your professional interests before embarking on a new job. By remaining vigilant and assessing potential red flags in your contract, you can ensure your rights are protected – not to mention, you’ll be in a better position to negotiate important terms. Overall, employment contracts should be mutually beneficial, so don’t hesitate to voice any concerns that may arise with your employer.