How To Check Your Employment Contract: 5 Tips To Protect Yourself

Congratulations! You have made it to the final stage of the interview process. After getting through the initial phase, the salary negotiation, and the final callback, your dream job is now within reach.

But before you start celebrating, reel your emotions in for a moment. There is one more step you have to get through before it becomes official: the contract.

So how do you check your employment contract before formally accepting that job offer?

First things first, this is not your ordinary Terms and Conditions. It is a legally binding document that you agree to in the form of your signature. Once you sign it off, it will be very difficult to contest whatever is written there had you not perused it further.

And as you read through, the details may seem overwhelming. Most contracts use legal speak after all.

But before we get to the guide we prepared for your convenience, we take a look at the advantages of having one.

Is it legal to have no contract of employment?Â

The answer is yes. In fact, DOLE does not require it. They define this type of agreement as consensual, meaning both the employer's and employee's consent create the relationship itself.

But why is it important to have one? A verbal agreement is unreliable.

There are several reasons why you should have a contract every time you engage for any purpose of service. Here are some of them now:

• Job Security. This works both ways "“ for the employee and the employer. When you have a contract, you know that your service engagement deal has been sealed. This is because the document defines your start and end date, which you both sign off on. On the other hand, your employer can confirm on paper that a role has been filled.

• Role Definition. The contract clearly defines what you are supposed to do, and what you can expect from your employer.
• Benefits and pay-off. You work and you expect to be paid, yes? This document helps you define payment terms and what you are entitled to while you are employed.

But how do you know if the contract you are signing is valid and complete? We share more in detail the five crucial parts that make this document up.

What should I check on my employment contract?

As you flip through the pages of your contract, you are probably wondering, "how do I verify what is in here?". Fortunately, we have gathered the top 5 items that should be present in this document.

1. The position and scope of work

This is, by far, the most essential part to check. You must ensure that the position title you applied for is the same one you see on paper. Aside from that, the scope of work must be clear-cut and must align with what the role requires. What you discussed during the interview should be the same as what you sign for.

Having a breakdown of responsibilities can help you assess your skills and capacity as well. In this regard, your monthly salary and any pertinent bonuses should be written in the contract.

Some positions (especially in Sales and Retail) receive incentives outside of their take-home pay. If you agreed upon an incentive during the recruitment process, the amount or percentage should be stated as well.

SAMPLE CLAUSE/S:

In consideration of the rights granted and Services to be provided to the Company set out under this Agreement, the Company will pay the [role] a monthly fee, based on the total number of hours at an agreed rate to be payable within two payment periods.

Subject to earlier termination in accordance with clause 8 below, the appointment of the [position] shall commence from [start date] and shall continue for a term of [duration], renewing each [number of times] unless notice of termination is provided by either party or unless otherwise extended by parties' agreement ("Term").

The Employee shall grant to the Company the rights and provide the services (collectively, the "Services") in accordance with this Agreement.

2. Terms of employment

The category type your role falls under should be stated there too. Whether you are a regular or contractual employee, you must be able to see what you are in for. This is where you determine if you are entitled to receive employee benefits.

Regular employees receive almost (if not all) the benefits a company can offer. On the other hand, non-regular employees only receive financial stipulations and nothing more. Aside from these, you can also see if your contract requires exclusivity.

An exclusivity clause refers to the fine print that dictates whether or not you can work for other companies on the side. Some companies have this, some do not. In order to see if the clause is applicable to you or not, it should be on the contract.

SAMPLE CLAUSE:

Employee is entitled to (number) vacation leaves and (number) sick leaves in addition to all holidays observed by the Company and its subsidiaries. Any unused vacation leave credits will not accumulate or carry over from one calendar year to the next.

3. Your supervisor or who you are supervising

Take note that this applies to both rank-and-file and managerial roles. If you have someone you report to, their name and position must be placed on the contract. Should you be managing someone or a team, their positions must be present as well.

Having these on the contract can help you see who is managing you. Your supervisor or manager will be the one to provide your performance rating at the end of the year. So it is best to get to know them and make the line of direct reports clear.

Knowing who your supervisor is can also help you identify if a colleague is exercising their authority on you without consent. On the other hand, knowing who you manage can help you get to learn about their working ways and personalities.

With these in mind, the key to knowing them prior is to find out how to build a harmonious relationship together. After all, you spend more than half your days with them in the week.Â

SAMPLE CLAUSE:

The Employee will report to the (position of Direct Supervisor/Manager).

4. Your employee benefits

Unless you are a contractual employee, you have the privilege of enjoying these perks. Getting to know what your benefits are can help you manage how to use them.

Take note that these are not of the financial kind. Such examples that fall under this category are your leaves, your health insurance/HMO plans, and the like.

If they need to be quantified, the number should be stated per leave category. HMO plans do not have to be stated outright, but who can avail them needs to be addressed.

SAMPLE CLAUSE:

During the term of employment, the Employee shall be entitled to participate in all employee benefit plans and programs made available to the Company's senior executives or to its employees generally. Such include [list of benefits].

5. Quitclaims, Clauses, and Terms of Termination

These usually end the employment contract, so you can search for them on the last few pages. In the event that your stay with the company ends, you may have to refer to these.

But do not let the words intimidate you "“ we break them down for you further.

• Quitclaims: Usually partnered with the release of your final pay, this refers to a document that releases your employer of any responsibility on you.

SAMPLE CLAUSE:

In connection with the cessation of my employment with [Employer]. effective [date] I, [name of Employee], for myself and my heirs, assigns, executors/administrators, or my successors-in-interest, do, by the presents, unconditionally release and forever discharge the Company from any and all actions, cause of action, suits, debts, dies, moneys, accounts, reckoning, promises, damages, claims, demands and/or liabilities of whatever nature or in whatever manner whether at law or in equity"¦

• Non-Compete Clause: This clause refers to your employer not wanting you to join any competing company after you resign.

SAMPLE CLAUSE:

The Employee shall not at any time during the Term and after the termination of the Services, disclose or make use of any trade secrets or proprietary information of the Company.

• Solicitation Clause: This states that once you leave the company, you cannot speak to your former clients anymore.

Make sure you speak with your HR manager regarding resignation or termination of the contract if need be. While this may be far off, for now, it would be nice to know for the future.

Understanding your employment contract can be daunting, especially if it is usually a bunch of legal speak. But rest assured that as long as you know what you signed up for, your contract will basically just confirm what you agreed on with your employer.

Know your contract and its content by heart, and have it by your side in case you need to pull it out. You never know!

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