What is an employment contract?
An employment contract is a legal agreement between an employer and an employee. It defines compensation, job responsibilities, working hours, benefits, confidentiality obligations, termination rights, and other conditions governing the employment relationship.
What to review before signing an employment contract
Risks to watch for
Common mistakes
- Focusing only on salary and ignoring restrictive clauses.
- Not reviewing termination conditions.
- Ignoring probation period obligations.
- Assuming verbal promises are enforceable.
- Not understanding post-employment restrictions.
Real-world example
An employee accepts a position with a strong salary increase but overlooks a broad non-compete clause. After leaving the company, they discover they are restricted from working for competitors in a large geographic area. A careful review before signing could have identified the issue and allowed negotiation.
FAQ
Can I negotiate an employment contract?
In many cases, yes. Salary, benefits, termination terms, non-compete clauses, and other provisions may be negotiable.
What is a probation period?
A probation period is an initial employment phase during which either party may have additional rights to terminate the relationship.
Are non-compete clauses enforceable?
This depends on local law and the specific wording of the clause. Some jurisdictions limit or prohibit certain non-compete restrictions.
Who owns work created during employment?
Employment contracts often contain intellectual property clauses that determine ownership of work products created during employment.
Can Lawyerless review my employment contract?
Yes. You can upload or paste your employment agreement and receive a plain-language explanation of important terms and risks.