What to Check Before Signing an Employment Contract (15 Clauses)

George Avgenakis -

You negotiated the salary, celebrated the offer, and now a PDF has arrived that will govern years of your life: and most people skim it in ten minutes, sign, and discover the notice period, the bonus conditions, or the non-compete only when each one bites. The contract is the deal: the offer letter was the advertisement. Here's the 15-clause checklist for reading it like someone who's been burned before, without being someone who's been burned before.

(Employment law varies enormously by country and state: this is a reading guide, not legal advice: for high-stakes contracts, an hour of employment-lawyer review is the best money in the process.)

The Money Clauses

  1. Base salary, payment schedule, and currency: matches the offer, states the review cadence (annual? discretionary?), and: if you negotiated anything verbally, it exists only if it's here
  2. Bonus terms, forensically: "discretionary" means exactly that: look for the target percentage, the conditions (personal vs company performance), proration rules for your first year, and the trap clause: many bonuses require being employed on payment date, meaning a March payout dies with a February resignation
  3. Equity referenced properly: the contract should reference the actual grant (units, vesting schedule, plan document), not just "eligibility for the equity program": the details live in the plan documents, which you're entitled to see before signing (what those documents actually mean)
  4. Clawbacks: signing bonuses and relocation money (negotiation guide) usually carry repayment terms: check the window (12 vs 24 months) and whether repayment prorates or cliffs, and whether involuntary termination voids it (it should)

The Exit Clauses (Read These Twice)

  1. Notice period, both directions: what you owe them and they owe you: asymmetric periods (you owe 3 months, they owe 2 weeks) are negotiable and worth flagging: long notice periods also shape your next job search years from now
  2. Termination grounds and severance: what "cause" means (broad definitions are a red flag), and what, if anything, is promised on termination without cause
  3. Probation terms: length, shortened notice within it, and any benefits that only vest after it (the full probation guide)
  4. The non-compete and non-solicit family: big enough for its own guide: scope, duration, geography, and whether your jurisdiction even enforces it: plus the quieter non-solicit (of clients and colleagues), which is enforceable more often and bites more careers

The Ownership and Conduct Clauses

  1. IP assignment scope: the sleeper clause for anyone with side projects: does it claim inventions "related to the business" made on your own time and equipment? Some places (California famously) limit these claims: many don't: an explicit carve-out listing your existing projects is a normal, grantable ask
  2. Moonlighting/exclusivity: can you freelance, advise, or run your Etsy shop? "No other employment without written consent" is common and worth softening to "no competing employment"
  3. Confidentiality: standard and fine, unless it's drafted so broadly it covers your own general skills and experience: which bleeds into non-compete territory
  4. Working time, location, and change clauses: if remote or hybrid matters to you, it must be written, not vibes: watch for "the company may vary duties/location as business requires" clauses that quietly authorize the return-to-office memo

The Fine-Print Trio

  1. Dispute resolution: mandatory arbitration and jury-trial waivers are increasingly common (mostly US): know what you're agreeing to
  2. The entire-agreement clause: the standard line that erases every verbal promise: which is why the recruiting-call promises about that title bump, the review at 6 months, the conference budget: all must be in the document or an attached email confirmed as part of the offer
  3. Governing law: which jurisdiction's rules apply: matters for remote workers and cross-border hires (Europe movers: this clause decides more than it looks like)

How to Actually Do the Review

  • Take the time openly: "I'd like a few days to review the contract" is professional standard, and pressure to sign same-day is itself a signal (the red-flags family)
  • Ask for changes in one consolidated round: contract asks work like salary negotiation: bundled, specific, and reasonable: "three small clarifications" lands; serial nitpicking doesn't
  • Price the lawyer correctly: for senior roles, equity-heavy offers, or scary non-competes, a one-hour employment-lawyer review costs a rounding error of what the clauses govern
  • Keep the leverage warm: the review window is exactly when a live pipeline matters: contract terms negotiate differently when walking away is real: one more argument for the automated volume (free plan) running until everything is signed

Frequently Asked Questions

What should I check before signing an employment contract?

Fifteen clauses in four families: money (salary, forensic bonus terms, actual equity grants, clawback windows), exits (notice periods both directions, termination definitions, probation, non-compete/non-solicit), ownership (IP assignment scope, moonlighting rules, confidentiality breadth), and fine print (arbitration, the entire-agreement clause that erases verbal promises, governing law). Every verbal promise must appear in writing: the entire-agreement clause guarantees it otherwise doesn't exist.

Can I negotiate an employment contract after accepting the offer?

Yes: the offer acceptance and the contract signature are separate events, and requesting clarifications or changes to the document is normal, especially on notice periods, IP carve-outs, moonlighting scope, and bonus conditions. Bundle asks into one consolidated round, keep them specific, and take review time openly: same-day signing pressure is a red flag, not an obligation.

Is it worth having a lawyer review my employment contract?

For senior roles, significant equity, unusual clauses, or restrictive covenants: emphatically yes: a one-hour review costs a fraction of what any single bad clause governs. For standard junior contracts, the checklist approach usually suffices, escalating to a lawyer if anything reads oddly broad, especially in the IP, non-compete, and termination sections.

What is the most commonly missed clause in job contracts?

The bonus employment-on-payment-date condition (a February resignation killing a March payout), followed closely by broad IP assignment reaching side projects, asymmetric notice periods, and the entire-agreement clause quietly voiding every verbal promise from the recruiting process. All four are routine to check and painful to discover late.

Can a company change my contract after I sign it?

Generally not unilaterally: changes require agreement, but watch for variation clauses ("duties and location may change as business requires") that pre-authorize shifts, and understand that in at-will jurisdictions the practical protection is thinner: the employer can often propose new terms with continued employment as the consideration. Written contracts with defined terms protect most where local law backs them.