7 Questions You Should Ask Before Signing the Contract with an Employer

When you’ve been offered a job, it’s easy to get swept up in the excitement of a new opportunity and overlook the finer details of the contract. However, it’s essential to carefully review the terms and conditions of your employment before signing on the dotted line. Please do so to avoid unpleasant surprises, ranging from unexpected working conditions to insufficient compensation. Asking the right questions before signing the contract with an employer is crucial to ensuring that you understand what you’re getting into and can make an informed decision about your employment. Here are seven questions that should be asked before signing a contract with an employer.

1. What is the Duration of the Contract?

This is especially important if you are being offered a fixed-term contract. You should know your contract’s exact start and end dates and what will happen when it ends. Will you be allowed to renew the contract, or will your employment be terminated? It’s essential to clarify any uncertainties about the duration of your contract before you sign on the dotted line. A Fair Work employment contract should also include information about any notice period you need to provide if you choose to end your employment before the contract expires. Additionally, if you are being offered a permanent contract, knowing whether you can be dismissed without notice and under what circumstances is essential.

2. What are the Terms of My Employment?

You need to understand fully what is expected of you in your new role and what you will receive in return. This includes essential details such as your job title, duties, and responsibilities. You should also understand your expected hours, pay, and benefits, such as vacation time, health insurance, and retirement plans. It’s essential to clarify any uncertainties you may have, such as your exact job responsibilities and how they may change over time. Additionally, ensure you clearly understand your salary and how it will be calculated, including any bonuses, commissions, or performance-based pay.

3. What is the Probationary Period, and What are the Terms?

Many employers have a probationary period during which they can terminate your employment with little or no notice. It’s important to understand the terms of this period and what it means for your job security. You should know the length of the probationary period, any conditions that apply, and how you will be evaluated during this time. Additionally, you should clarify what will happen at the end of the probationary period. Will you be offered permanent employment, or will your employment be terminated? Understanding your rights and obligations during probation is important, including any training or development opportunities available. 

4. What are the Termination Clauses?

You should understand your employer’s grounds for terminating your employment and how much notice they must give you. Ensure you know why your employment can be terminated, such as poor performance, misconduct, or redundancy. It’s also essential to clarify the notice period required for you and your employer if you decide to terminate your employment. Additionally, you should understand any severance pay or benefits you may be entitled to in the event of termination.

5. What are the Terms of Any Non-Compete or Non-Disclosure Agreements?

If you are being asked to sign a non-compete or non-disclosure agreement, it’s essential to understand the agreement’s terms fully. These agreements can restrict your ability to work for competitors or disclose confidential information. Ensure you know what activities are prohibited and how long the restrictions apply. It’s also essential to check whether the restrictions are reasonable, as a court could deem unreasonable restrictions unenforceable.

6. What Other Rights and Obligations Do I Have?

You should clarify any other rights and obligations that apply to your employment. This may include obligations to report for work on time and inappropriate clothing or rights such as a minimum number of hours per week or holiday pay. It’s also essential to check whether your employer will provide additional benefits, such as time off for special occasions or extra pay if you work late. Additionally, you should ensure that the contract respects all applicable laws and regulations and is not discriminatory.

7. What are the Dispute Resolution Clauses?

It’s important to understand what procedures will be followed in the event of a dispute between employer and employee. You should clarify what steps will be taken before an issue escalates, whether you can use mediation or arbitration to resolve conflicts, and any other procedures that may apply. Additionally, you should ensure that any dispute resolution clauses comply with the laws of your jurisdiction.

Your employment contract is an important document that should clearly outline your rights and obligations as an employee. Read the contract carefully and ask any questions you may have about it before signing it. By taking the time to understand the terms of your employment, you can ensure that both you and your employer are protected in case of a disagreement or dispute.