What Should Be in Your Employment Contract Before You Sign? (Listicle)

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Before signing an employment contract, it’s crucial to understand the terms that will shape your career. This guide outlines the essential components every contract should include to protect your rights and interests, ensuring you’re well-informed and prepared to negotiate. If you have concerns, consider consulting an attorney near you for expert advice.

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Ensure you're protected before signing your employment contract with our essential guide. Discover 10 key elements to look for, from salary and benefits to non-compete clauses. Consult an attorney near you to navigate the complexities of your contract and safeguard your career.

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Employee reviewing employment contract with lawyer near you, discussing salary, non-compete agreements, and job duties in a modern legal consultation setting.

Understanding Job Offer Letters & Employment Contracts (Expanded Definition)

What Should Be in Your Employment Contract Before You Sign? (Listicle)

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Mar 29, 2025 04:27 PM

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What Should Be in Your Employment Contract Before You Sign?

Before you sign an employment contract, it’s essential to understand what you’re agreeing to. Many employees assume all contracts are fair, but some include hidden clauses that can limit your salary, career growth, and future job opportunities.

A solid employment contract should clearly outline your job terms and protect your rights. If something seems unclear or unfair, you have the right to negotiate or consult an employment lawyer before signing.

Here’s a list of 10 essential things every employment contract should include before you sign.

💡 For every post in this series, scroll down to “Related Posts.”

1. Job Title, Duties & Expectations

Why It’s Important:

Your contract should clearly define your role to prevent misunderstandings.

Your job title and description should match what you were offered.

The contract should list specific responsibilities, so your employer can’t later demand unrelated work.

Red Flag: Vague language like “other duties as assigned” without limits could mean your responsibilities can drastically change.

💡 Tip: If your job duties seem too broad, ask for clarification or a written amendment.

2. Salary, Bonuses & Raises

Why It’s Important:

Your contract should state exactly what you’ll be paid and under what conditions.

Base salary (hourly, weekly, or annual amount).

Bonuses & commission structure, if applicable.

Pay raise schedule, including performance-based increases.

Red Flag: “Discretionary bonuses” without clear terms may mean your employer isn’t obligated to pay them.

💡 Tip: If you were promised a raise or bonus, make sure it’s in writing before signing.

3. Benefits & Perks

Why It’s Important:

Many employees assume benefits are guaranteed, but they’re only enforceable if in your contract.

Health insurance, dental & vision – What’s covered and when it starts?

Retirement plans (401k, pension, etc.) – Is there employer matching?

Paid time off (PTO) – Vacation days, sick leave, and holidays.

Other perks – Gym memberships, childcare assistance, stock options.

Red Flag: If benefits are not in your contract, your employer can change or cancel them at any time.

💡 Tip: Ask for a detailed benefits package before signing.

4. Work Schedule & Remote Work Terms

Why It’s Important:

Your contract should clarify when and where you’ll be working.

Your weekly hours (e.g., 40 hours, overtime rules).

Whether remote work is allowed or required.

If overtime is expected and paid.

Red Flag: A contract that says “work as needed” without specifying limits—this could mean long unpaid hours.

💡 Tip: If you want flexible hours or remote work, negotiate before signing.

5. Non-Compete Clause (If Any)

Why It’s Important:

A non-compete agreement (NCA) may prevent you from working for a competitor after leaving the job.

If a non-compete is included, check:

How long does it last? (6 months to 2 years is common).

How big is the geographic restriction? (city-wide vs. nationwide).

What industries or companies are off-limits?

Red Flag: Some NCAs are too broad, restricting you from working in your field anywhere.

💡 Tip: If the non-compete limits your future career, negotiate to narrow the terms or remove it.

6. Termination & Severance Pay

Why It’s Important:

Your contract should clearly state how and when you can be fired—or quit.

Termination conditions – Can they fire you without cause?

Notice period – How much time must you or your employer give before termination?

Severance pay – Will you be compensated if you’re laid off?

Red Flag: If the contract says you can be fired “at will” without severance, you may have no job security.

💡 Tip: Negotiate for severance pay, especially if leaving a stable job for a new opportunity.

7. Intellectual Property & Confidentiality Agreements

Why It’s Important:

Your employer may claim ownership of anything you create while working there.

If you develop software, write, or invent things, check who owns the work.

A confidentiality agreement (NDA) may restrict you from discussing company secrets even after leaving.

Red Flag: If the contract claims ownership of all intellectual property, it could prevent you from using your own work elsewhere.

💡 Tip: If you freelance or do side projects, ensure your contract allows it.

8. Dispute Resolution & Arbitration

Why It’s Important:

Your contract should explain how legal disputes will be handled.

Does the contract require arbitration? (Some companies ban lawsuits and force employees into private arbitration).

Can you take legal action for wrongful termination or discrimination?

Red Flag: If arbitration is mandatory, you may lose your right to sue in court.

💡 Tip: If arbitration is required, ask who chooses the arbitrator and who pays for the process.

9. Relocation & Travel Requirements

Why It’s Important:

Some contracts require relocation or frequent travel, which may not be clear upfront.

Are you expected to relocate? If so, will the company cover moving expenses?

Does your job require travel? If so, how often and who covers the costs?

Red Flag: Contracts with “relocation as required” without details—this could mean unexpected moves.

💡 Tip: If relocation is required, negotiate relocation reimbursement.

10. Post-Employment Restrictions

Why It’s Important:

Some contracts restrict what you can do after leaving the company.

Non-solicitation clauses – Can you recruit former coworkers for a new job?

Non-disparagement agreements – Can you speak publicly about your employer after leaving?

Red Flag: A broad non-disparagement clause could prevent you from speaking out about a toxic workplace.

💡 Tip: If a contract limits your ability to work after leaving, consult an employment lawyer.

What to Do Before Signing an Employment Contract

💡 Follow these steps to protect yourself before signing:

Step 1: Read Everything Carefully

Look for unclear language, vague terms, or hidden restrictions.

Step 2: Negotiate Terms

Employers expect some negotiation—especially for salary, non-competes, and severance pay.

Step 3: Get Everything in Writing

Verbal promises don’t count! Ensure everything is included in the contract.

Step 4: Consult an Employment Lawyer

If something seems unfair or unclear, an employment lawyer near you can review it before you sign.

💡 Tip: Once you sign, your ability to challenge the contract is limited, so get legal advice before committing.

Final Thoughts: Protect Yourself Before Signing

Your employment contract affects your salary, job security, and career growth—so don’t rush into signing without understanding the terms. If something feels too restrictive, unclear, or unfair, ask for changes or seek legal advice.

At ReferU.AI, we connect employees with top-rated employment lawyers near you. Our AI-powered system finds lawyers who specialize in employment contracts—so you get expert legal help fast.

Need help reviewing your contract? Get legal advice today!

What Should Be in Your Employment Contract Before You Sign? (Listicle)