1. Job title and description
Knowing the scope of your employment is important because it
describes the role and duties the employer can ask you to do. This is
reflected in the job title and description. These should be specific and
should match the job description for which you applied. If it is not precise
enough, you might find yourself doing things you can’t or don’t want to do. It
can also mean that you will end up dealing with a heavier workload than
anticipated.
2. Bonuses and salary
The first thing to do when checking this section is to make
sure that the salary is included in the one
you negotiated. You should know how and when you will be paid. This section can include additional incentives like
bonuses, health benefits, and travel expense reimbursements. It should be stipulated how and in which cases you can receive these. You need to see the exact
criteria based on which you receive a bonus.
There are two types of bonuses, guaranteed and
discretionary. A discretionary bonus is
one where information about the bonus is not
disclosed in advance.
3. Cause of termination
The reasons the employer can give if they want to terminate
the contract are reflected in the termination. Read this section
carefully and ask the HR department for clarification if you don’t understand
the legal jargon. The terms of termination need to be clear. Otherwise, you
might end up agreeing to your termination at any time, without notice and
worse, without any reason. This is termed
‘without cause.’
If the termination is because of ‘just cause’ it either
means that you’ve broken some rules or that you have not delivered what you’ve
promised. The cause of termination can also be your resignation. Here, make
sure you read about the notice period.
You should also be careful if you find the term ‘sole
discretion’ written in this section, in case, of the contract’s termination before its end date. This term can mean that
your employer can decide to fire you without talking to you first. This
eliminates any possibility for discussion, notification or compromise. A
friendlier alternative gives both the employee and the employer a say in the
matter.
4. Start/end date and notice period
The start and end dates need
to be clearly stated. Having a stipulated
notice period is important because it gives both parties some time to prepare for their next step. This period might be anywhere between one week and three
months, and in many cases depends on the length of your employment.
5. Holidays and sick leave
Both of these vary depending on the country you are working
in, and there is strict legislation that stipulates the duration of your
holiday and the terms for sick leave. The points that should be clearly stated about holidays are:
·
How many days of vacation you are entitled to
·
When does the holiday year start
·
Whether you can take holidays at certain busy
times of the year, like Christmas
·
Whether you can carry any days over to the next
year
In many countries paid sick leave is a statutory
requirement, meaning that there are laws written about it. Most of Europe has
legal requirements for sick leave. In the US, the state does not require
employees to have paid sick days, but the government guarantees unpaid sick
leave in case of serious illness. Make
sure you know the law before you look at this section of the contract.
6. Working hours
Check whether you need to work the weekends or in the
evenings and if so how will you be paid for this. In some cases instead of being paid for
overtime, these hours can be converted
into days off or holidays commonly called “time-in-lieu.” You need to be clear on company policy and be prepared to
negotiate. A good work-life balance is a
health requirement in the long run and boundaries need to be set. But again, the working culture is
different for every country and company, so be sure to know in advance what
you’re getting into.
7. Restrictive Clauses
These take effect after the termination of employment and
are important for employers because they protect the business, its clients and
other employees. There are four of these, non-competition,
non-solicitation, non-dealing, and non-poaching clauses. Knowing these terms
and what they entail is important because they might restrict you from taking future jobs.
·
Non-competition clauses may limit you to work
for a competitor of your former employer
·
Non-solicitation clauses prevent you from
poaching clients and suppliers of your former employer
·
Non-dealing clauses prevent former employees
from dealing with former customers and suppliers
·
Non-poaching clauses prevent former employees
from poaching former colleagues
