10 things you need to check before signing a contract

After a long and gruelling recruitment process, reading through your employment contract might not be the most exciting prospect.

If you’re just starting out in the world of work, you may think it’s entirely unnecessary. If you’ve never had much need to refer to a contract so far in your career, you may think it’s just a waste of time.

But reading the fine print of your employment contract is a must. (Even if you think you’ve already reached an agreement with your employer on the key points.)

Understanding the legal jargon contracts are written in will help bring clarity to your rights and responsibilities – and any perks that come with the job.

Best case scenario, your contract never need be consulted again. But chances are at some point you will rely on it as the principle formal legal agreement between you and your employer.

Here are the 10 most important things you need to check before putting pen to paper.

1) Job title

This may not seem like something crucial, especially when first starting out, but it can prove to be.

Take care to ensure your job title best reflects the work you’ll be doing. This is important for representing yourself to external parties, your fellow colleagues, and to future employers too (it might be on your CV for the rest of your career).

Being given the wrong job title can have further reaching consequences than might be suspected. Negotiate this point if necessary, and be sure to know why you’re being given the title you’re offered.

2) Job description

Not all contracts contain a summary of the job description.

If your contract does feature one, ensure it is not too limited nor too expansive. An inaccurate job description might end up taking you down a path not agreed upon at interview.

If your contract doesn’t include a job description, make sure you are in no doubt as to the expectations around your role before signing.

3) Remuneration (salary and bonuses)

The first thing to do when checking this section is to make sure that the salary stated is the one you negotiated. You should also know how and when you will be paid.

Your contract should stipulate any additional incentives and perks such as paid bonuses, health benefits, travel expenses, and other reimbursements. It might also include the criteria where these will be given.

There are two types of bonuses – guaranteed and discretionary. A discretionary bonus is one where information about the bonus is not disclosed in advance.

4) Period of employment (start and end dates)

Both the start and end dates need to be clearly stated, unless the contract is a permanent one.

Your contract may stipulate a certain notice period you (and your employer) will have to give upon declaring that it’s time for you to leave the job (which is likely to change depending on how long you’ve been doing it).