Employment Contract Review: Everything You Need to Know Before Signing

The employment contract you sign with excitement when starting a new job is one of the most important documents of your working life. However, most people sign without carefully reading the contract and face serious problems later. In this guide, we cover in detail what you should pay attention to before signing an employment contract.

Essential Clauses to Check in an Employment Contract

Small details overlooked in an employment contract can lead to significant loss of rights later. Here are the most critical clauses:

1. Salary and Payment Terms

It should clearly state whether the figure is gross or net. The payment date, how bonuses and benefits are calculated must be clear. Vague expressions like "at the employer's discretion" should be carefully evaluated.

2. Working Hours and Overtime

Check the weekly working hours, how overtime is compensated, and whether overtime pay is included in the salary. Many jurisdictions require overtime to be paid at a premium rate above the standard hourly wage.

3. Probation Period

The probation period is typically limited by law. During this period, both parties can usually terminate the contract without notice. Make sure the duration complies with your local regulations.

4. Non-Compete Clause

Clauses that prohibit you from working at a competitor after leaving are very important. Such restrictions should be limited in time, geographic area, and scope of activity. Overly broad non-compete clauses may be deemed unenforceable.

Red Flags in an Employment Contract

Be cautious when you see the following clauses and negotiate if necessary:

• •Clauses giving the employer unilateral authority to change your role or location
• •Excessively high penalty amounts (especially training cost reimbursements)
• •Vague or open-ended "other duties" expressions
• •Clauses stating overtime is included in salary without setting any limit
• •Unreasonable notice periods in case of resignation

Fixed-Term or Indefinite-Term?

Indefinite-term contracts generally provide more security to employees, with rights to severance and notice compensation. Fixed-term contracts should only be used when objective conditions exist (project-based work, seasonal work, etc.). If an employer imposes a fixed-term contract solely to avoid paying compensation, this may be legally questionable.

Before signing an employment contract, always take a copy and read it calmly at home. Ask for clarification on clauses you don't understand.

How to Analyze a Contract Quickly

Reviewing a long contract full of legal terms one by one is time-consuming and exhausting. Klauz analyzes your uploaded employment contract within seconds, identifies risky clauses, and provides explanations and improvement suggestions for each. This way, you clearly see what to watch out for before signing.