Employment contracts: what to check before you sign

Start with the basic identity of the agreement. The contract should make clear who the employer is, who the employee is and what role or function the employee is being hired for.

Do not assume that a brand name, group company and legal employer are always the same entity. The legal employer named in the contract is usually the organisation responsible for salary, employment administration and formal notices.

Also check whether the job title matches what was discussed during recruitment and whether the description is specific enough for you to understand the expected role.

The contract should identify when employment begins and whether the arrangement is open-ended, fixed-term or linked to a particular project or condition.

If a contract has an end date, check whether it ends automatically or whether notice is still required. Some agreements also describe conditions for renewal or extension.

Make sure the written start date matches what you agreed verbally or in an offer letter.

Many employment contracts include a probation or trial period at the beginning of employment. The exact rules vary significantly between countries and may also depend on collective agreements or employment law.

The contract may specify how long probation lasts, whether it can be extended and whether different notice rules apply during this period.

Do not focus only on the length of probation. Check what practical consequences it has for notice, benefits, responsibilities or other conditions.

Salary clauses can contain more information than a single number. Check whether the amount is stated as gross or net, how often it is paid and whether it covers a fixed number of working hours.

The contract may also refer to additional salary components such as allowances, commissions, bonuses, tips, expenses or payments that depend on performance or company results.

If any part of the compensation is variable, understand whether it is guaranteed, discretionary or subject to separate rules.

Check how many hours you are expected to work and how the contract describes your normal schedule. Some contracts specify exact hours, while others refer to weekly hours, shifts, flexible schedules or company policies.

If the role involves evenings, weekends, travel, standby duties or variable schedules, look for wording that explains how these arrangements work.

Where the contract refers to another document such as staff regulations or a collective agreement, that document may contain important additional rules.

Overtime clauses deserve careful attention because the wording can affect whether extra hours are paid, compensated with time off or treated as included in salary.

The contract may distinguish between different types of additional work or may refer to statutory rules, collective agreements or internal policies.

If the clause is broad or unclear, ask how overtime is recorded, approved and compensated in practice.

Employment contracts often state annual holiday entitlement or refer to the legal minimum, a collective agreement or company policy.

The contract may also describe how holidays are requested, whether unused days can be carried forward and how sickness or other absences must be reported.

Because leave rules vary widely, treat the contract as one part of the picture and check any referenced policies or applicable legal rules.

Some employment packages include benefits that are not part of base salary. These may include pension contributions, insurance, meal allowances, transport, company equipment, training or other support.

Check whether a benefit is guaranteed by the contract or provided under a separate policy that the employer may change.

Expense rules can also matter if the job involves travel, client visits, remote work or regular business costs.

Variable compensation is often described separately from fixed salary. The contract may explain targets, eligibility, calculation methods or payment dates.

Pay close attention to words such as discretionary, guaranteed, target, eligible or subject to approval. These terms can materially change what you can expect.

If the contract refers to a separate bonus plan, ask for that document before relying on the bonus as part of expected compensation.

Many employment contracts contain confidentiality obligations. These may apply during employment and sometimes continue after employment ends.

Contracts may also regulate ownership of work created by the employee, inventions, software, designs, documents or other intellectual property.

If a clause appears unusually broad or could affect work you create outside your job, consider obtaining clarification before signing.

Some contracts restrict what an employee may do after leaving the company. This may include working for competitors, approaching clients, hiring former colleagues or using business information.

The enforceability of these clauses differs substantially by jurisdiction. Do not assume that a clause is automatically valid or invalid simply because it appears in the contract.

Look carefully at the duration, geographic scope, affected activities and any compensation connected with the restriction.

One of the most important parts of an employment contract is what happens when either side wants to end the relationship.

Check the notice period, how notice must be given and whether different rules apply during probation or after a certain length of service.

The contract may also address immediate termination, garden leave, final payments, return of company property or other obligations when employment ends.

An employment contract may refer to workplace policies, employee handbooks, staff regulations, collective agreements, bonus plans or other documents.

These references matter because additional obligations may exist outside the main contract. Ask for documents that are expressly incorporated into the agreement if you have not received them.

If two documents appear to conflict, do not guess which one applies. Ask the employer or obtain appropriate advice.

Read the complete contract rather than focusing only on salary and job title. Important conditions are often spread across several clauses or referenced documents.

Compare the written contract with the offer and discussions you had during recruitment. If something important is missing, different or unclear, ask for clarification before signing.

Keep a copy of the final signed version and any related documents that form part of the agreement.