What to Check in an Employment Contract Before You Sign

What to Check in an Employment Contract Before You Sign

Before you start a new job, you will usually receive an offer letter, an employment contract or both. It is tempting to sign quickly, especially for your first job. Taking 30 minutes to read it carefully helps you understand what you are agreeing to and catch mistakes before they become problems.

This checklist explains what to look for. It is general information, not legal advice. Employment law differs between countries, states and provinces, so if something worries you, ask the employer for clarification or seek advice from a qualified professional or an official labor information service.

Offer letter vs contract

  • An offer letter summarizes the main terms: title, pay, start date and conditions. In some places, especially in the US where at-will employment is common, it may be the main document you sign.
  • An employment contract is usually more detailed and sets out obligations for both sides. In many countries, written terms of employment are required.

Either way, read everything you are asked to sign, including attached policies.

The checklist

1. Basic details

  • Your name is spelled correctly.
  • Job title matches what was discussed.
  • Start date and location are correct.
  • Employer’s legal name is listed.

2. Pay

  • Salary or hourly rate matches the offer.
  • Pay frequency (weekly, biweekly, monthly) is stated.
  • Overtime eligibility and rates are clear.
  • Bonuses or commissions are described, including conditions.
  • Any agreed salary review date is included.

3. Hours and location

  • Normal working hours and days.
  • Shift patterns or on-call duties.
  • Remote or hybrid arrangements, if agreed, are written down.
  • Whether you may be required to work at other locations or travel.

4. Duties

  • A summary of responsibilities that matches the role you applied for.
  • Wording such as “other duties as reasonably required” is common, but the core role should be clear.

5. Probation period

  • Length of any probation and how it is assessed.
  • Notice period during probation, which is often shorter.

Our guide to probation periods explains what they usually mean.

6. Benefits and leave

  • Paid time off and how it accrues.
  • Sick leave.
  • Health and retirement benefits, or a reference to the benefits guide.
  • When benefits begin.

See our guide to employee benefits for the terms.

7. Notice and termination

  • How much notice you must give to resign.
  • How much notice the employer must give, where applicable.
  • Any conditions for termination.

8. Confidentiality

  • What information you must keep confidential and for how long.

Confidentiality clauses are standard and usually reasonable. Make sure they do not require you to keep illegal conduct secret; many jurisdictions limit that.

9. Restrictive covenants

  • Non-compete clauses that restrict working for competitors after you leave.
  • Non-solicitation clauses that restrict contacting clients or recruiting colleagues.

The enforceability of these clauses varies greatly by location, and rules have been changing in several places. For an entry-level role, a broad non-compete is worth asking about.

10. Intellectual property

  • Who owns work you create in the job. It is normal for the employer to own work created as part of your job; check whether the clause reaches into personal projects made on your own time and equipment.

11. Policies and handbooks

  • Which policies are part of the agreement (code of conduct, IT use, remote work).
  • Ask for copies of any policies you are asked to accept.

12. Conditions

  • Background checks, reference checks, right-to-work documentation or certifications that must be completed.

Red flags

Red flag What to do
Terms differ from what you were promised Ask for correction before signing
Pay below legal minimums Do not sign; check official guidance
Requirement to pay the employer for training or equipment Ask questions; this is a common scam pattern
Very long notice periods or penalties for leaving Ask for explanation
Pressure to sign immediately without reading Ask for time; it is your right to review
Blank spaces or missing pages Do not sign until complete

How to ask questions

Questions are normal and professional:

Clarifying a clause

“Thank you for sending the contract. Before I sign, could you help me understand clause 9 on non-solicitation? I want to make sure I understand what it covers.”

Correcting a mistake

“I noticed the contract lists a start date of November 10, but we agreed on November 3. Could you please update it?”

Keep copies

Save a signed copy of everything, including the offer letter, contract, benefits guide and policies. Store them somewhere you can access even after you leave the job.

Review your contract clause by clause

When your contract arrives, print it or open it next to this checklist and go section by section. Note any questions, send them in one email and sign only when everything matches what you agreed. Then use our template to accept the offer professionally.

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