When starting a new role, understanding what to ask for in an employment contract is just as important as negotiating your salary. A well-structured contract protects your rights, clarifies expectations, and sets the foundation for a successful professional relationship. Whether you’re entering your first job or moving into a senior leadership position, this guide will walk you through the essential elements you should review and negotiate.
Why Your Employment Contract Matters
An employment contract is a legally binding agreement between you and your employer. It outlines your responsibilities, compensation, benefits, and the terms of your employment. A clear contract prevents misunderstandings and ensures both parties are aligned. Before signing, take time to carefully review every clause and don’t hesitate to negotiate where appropriate.
What to Ask for in an Employment Contract?
Below are the key areas you should examine and, if necessary, negotiate.
1. Job Title and Role Responsibilities
Make sure your job title accurately reflects your position and career level. Your contract should clearly define:
- Core duties and responsibilities
- Reporting structure
- Performance expectations
- Scope of authority
2. Salary and Compensation Structure
Compensation goes beyond base pay. When considering what to ask for in an employment contract, clarify:
- Base salary
- Payment schedule
- Overtime eligibility
- Bonus structure (performance-based or discretionary)
- Commission details (if applicable)
- Equity or stock options
Ensure the contract specifies when and how bonuses are paid, and whether they are guaranteed or discretionary.
3. Benefits and Perks
Benefits significantly impact your overall compensation package. Confirm details such as:
- Health, dental, and vision insurance
- Retirement contributions
- Paid time off (PTO) and sick leave
- Parental leave
- Remote work flexibility
- Professional development allowances
Also ask about probation periods and whether benefits apply immediately or after a waiting period.
4. Working Hours and Flexibility
Clarify expectations around:
- Standard work hours
- Overtime policies
- Remote or hybrid arrangements
- Travel requirements
If flexibility is important to you, make sure it is clearly written into the contract rather than relying on verbal promises.
5. Termination Terms and Notice Period
One of the most critical aspects of what to ask for in an employment contract is the termination clause.
Review:
- Required notice period (for both parties)
- Grounds for termination
- Severance pay terms
- Garden leave provisions
- Probationary termination conditions
6. Restrictive Covenants (Non-Compete & Non-Solicitation)
Some contracts include restrictions that limit your ability to work elsewhere after leaving.
One should look for:
- Non-compete clauses
- Non-solicitation clauses
- Confidentiality agreements
Check the duration, geographic scope, and enforceability of these restrictions. Overly broad clauses may limit future opportunities.
7. Intellectual Property Rights
If your role involves creating content, software, inventions, or creative work, confirm:
- Who owns intellectual property
- Whether side projects are excluded
- Rules around pre-existing work
8. Performance Reviews and Salary Reviews
Ask how often performance reviews occur and whether salary reviews are guaranteed or discretionary. A written review schedule supports career progression and pay growth.
9. Dispute Resolution Process
Understand how disputes will be handled:
- Internal grievance procedures
- Mediation or arbitration clauses
- Governing law and jurisdiction
What Are the 5 C’s of a Contract?
When evaluating what to ask for in an employment contract, it helps to understand the foundational legal principles behind any valid agreement.
The 5 C’s of a contract are:
1. Consent
Both parties must freely agree to the terms without coercion or misrepresentation.
2. Consideration
There must be an exchange of value — typically your work in exchange for salary and benefits.
3. Capacity
Both parties must have the legal ability to enter into the contract (e.g., of legal age and sound mind).
4. Clarity
The terms must be clear and specific. Ambiguous language can lead to disputes.
5. Certainty
The agreement must be definite enough to be enforceable, with clear obligations and expectations. Understanding these principles helps you assess whether the contract is fair, balanced, and legally sound.
Red Flags to Watch For
When reviewing what to ask for in an employment contract, be cautious of:
- Vague job descriptions
- Discretionary bonus language with no criteria
- Excessive non-compete duration
- Unilateral changes allowed by the employer
- Extremely long notice periods without severance
If something seems unclear or overly restrictive, seek clarification or legal advice before signing.
Final Thoughts
Knowing what to ask for in an employment contract empowers you to protect your career, income, and future opportunities. An employment contract is not just paperwork — it’s a roadmap for your professional relationship.
Before signing:
- Read every clause carefully
- Negotiate where necessary
- Get promises in writing
- Consider legal review for senior roles
A well-negotiated contract sets the tone for long-term success and professional growth.
