After a challenging hiring process, the excitement of starting a new job is there, but so is the overwhelming task of completing all the paperwork before you begin. Your next job offer might include a long employment contract based on your experience and industry. Even if the employer sees it as a formality, don't just skim and sign. It's crucial to delve into the details to save you trouble in the future. When in doubt, have an attorney weigh in.
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A contract has specific start and end dates and provisions for termination, commonly seen with higher-level executives. Most employees are at will without a written agreement, and employers can terminate contracts at any time for any reason. Similarly, employees can quit jobs for no reason at all.
Key Points to Spot in a Contract
Here are five things you should check before signing the contract:
1. Job Title and Duties
Check that the job title and duties in the employment contract match what was stated in the job description. If you see significant differences from what you applied for, discuss them with the hiring manager or HR before signing. Talk to the employer before signing if the changes don't align with your skills or work ethic.
2. Salary and Benefits
Ensure that the pay and benefits in your contract match what was offered in the offer letter. Check the payment methods and salary release dates. Companies may provide additional benefits like pensions, healthcare, and bonuses for permanent employees.
3. Start Date and Working Hours
Check the working hours in your contract to ensure the start date doesn't overlap with your current job in case you leave an existing one. Contractors can set their hours, but employees should ensure they match expectations for productivity and stress-free work.
4. Holiday Pay and Sick Leave
Before signing, check the holiday period terms, including any limitations on when you can take them. For sick leave, ensure it aligns with minimum legal standards, and check how payment works during holidays and sick leaves. Contractors might not get benefits or sick leave from the employer, so additional benefits like health insurance need separate processing.
5. Restrictive Clauses
Restrictive clauses usually take effect after a job separation and not during employment. This includes non-compete, non-solicitation, non-dealing, and non-poaching clauses meant to protect the employer's businesses, employees, and clients.
The Two Layers of Secrecy in a Contract You Should Look Out For
Two types of clauses that can significantly impact a worker's future, which they may not realize until it's too late:
Forced Arbitration
Most American workers undergo a secretive process called forced arbitration to prevent them from filing lawsuits if they face workplace issues like discrimination or retaliation, where the employer chooses the arbiter who favors the company to secure future business.
Non-Disclosure Agreements (NDA)
Non-disclosure agreements (NDAs) are another layer of secrecy in employment contracts originally intended to protect company information, which now extends to preventing disclosure of workplace misconduct. If you experience or witness discrimination or retaliation, you may be legally barred from discussing it with colleagues, friends, or loved ones, preventing you from warning others.
These practices aren't limited to standard employment contracts but apply to independent contractors, part-time employees, volunteers, and consumers. They might be hidden in severance and settlement agreements or routine office paperwork.
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