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Understanding employment contracts before signing

Starting a new job can be exciting and intense all at the same time. Once a job has been secured, new employees are usually provided with multiple forms to review and sign. In the mix of these documents, employers may sometimes include employment contracts. Before sealing the deal, it is important for Colorado employees to read through and understand any contract before signing.

An employment contract is a written agreement between an employer and employee that sets terms and conditions of an employment relationship. It is important to understand that not all contracts are the same and usually vary depending on the job title and level of leadership. In general, most employment contracts will include a job overview along with compensation and benefits. Some additional perks may be a company car and gas mileage or moving and transition expenses.

Along with the general coverage, some employment contracts may also include severance packages and other clauses that protect an employee's well-being. These are usually dependent on the job level and experience. Depending on the position or job offer, employees may also be required to sign a non-disclosure agreement or a non-compete agreement.

The details of employment contracts are important. When agreeing to the terms of a new job, it is recommended that Colorado employees seek the guidance of experienced legal counsel to help in the understanding of certain terms before signing on the dotted line. For most, a job is their livelihood; therefore, it is important to understand all of the contracts details and to not take any chances.

Source:, "What is an Employment Contract?", Susan M. Heathfield, Accessed on Jan. 29, 2018

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