According to Gusto, five million new businesses emerged in 2022 in the U.S. This growth in the market led to many job openings.
When considering a new job opportunity or contemplating a career change, the employment contract becomes a pivotal document that outlines the terms and conditions of your employment. Scrutinizing the contract is essential to ensure it meets your needs and safeguards your rights.
Compensation
Pay close attention to the compensation section of the contract. It should clearly outline your salary, including any bonuses, commissions or other forms of payment. Look for specifics regarding the frequency of payment, such as weekly, bi-weekly or monthly, and ensure it aligns with your expectations.
Job description and responsibilities
The contract should provide a detailed job description and list your responsibilities. Understanding your role and what the employer expects of you is important for success in the position.
Working hours and schedule
Review the contract for information about your working hours and schedule. Ensure that it accurately reflects your understanding of the expectations, including any flexibility or requirements for overtime.
Benefits and perks
Employment contracts often include information about benefits such as health insurance, retirement plans, paid time off and other perks. Evaluate these provisions to ensure they meet your expectations and align with your needs.
Termination and notice period
The contract should outline the terms of termination, including the notice period you and the employer must provide.
Non-compete and non-disclosure clauses
These clauses restrict your ability to work for competing companies or share confidential information. Review these clauses to understand their scope and any potential limitations on your future career choices.
Intellectual property and ownership
If your role involves creating intellectual property or inventions, the contract should clarify the ownership of such creations.
Dispute resolution
The contract may specify the process for resolving disputes between you and your employer. Review this section for information about arbitration, mediation or litigation as the means of dispute resolution.
Severance and exit packages
Understanding the severance or exit package provided in case of termination is essential. It can impact your financial security in the event of job loss.
Carefully reviewing an employment contract ensures that the terms and conditions align with your expectations and protect your rights. It will also help you make informed decisions about your career.
