Before you say ‘hurray’ to that job, read the contract

By Polycarp Ngoje

Most employees sign an employment contract immediately they get the job without thinking twice.

Owing to their desperation, they are always willing to sign anything without thinking about the nuances of offers or really how much money, benefits and opportunities they will leave on the table should they part ways with the employer.

But the key elements of an employment contract should be understood before accepting the offer.

Resolve dispute

If need be, its important to have a an expert review the contract before you sign the dotted lines. Lawyers can be of help when it comes to analysing such documents.

Employees need to understand and interpret the following key conditions of employment:

Terms and Conditions of Employment: This may include compensation and duration of employment. Issues in this area include: Effective Date; Duration; Termination Date; Salary; Benefits/Retirement.

Compensation-salary, special expenses such as auto, allowances, relocation, moving, and such.

Other items that may or may not be detailed in this category include: bonuses including sign-on bonuses, incentives or inducements, stock options, salary deferment plans, disability, health and retirement.

Non-Compete Clauses: Issues that follow non-compete clauses by design are intended to project the legitimate interests of the employer.

Labour laws

They define legitimate interests including the employee’s ability to earn a livelihood, the nature of the activities it affects, its impact on the general public, and more.

In most cases, non-competes want a period of time-perhaps one to two years-of restraint on competitive activity, especially as it weighs on geographic scope.

What companies try to protect include: trade secrets, confidential information, customer relationships, goodwill, and unique or extraordinary skills.

Termination Provisions that may cover duty and performance parameters; financial/reorganisation issues. There is need to review the outplacement plan that seek to resolve employee terminations by disagreement or dispute.

If one feel relieved that they don’t have a very big, long-winded employment agreement, they have to think again.

Remember that employer’s verbal suggestions or promises of job protection during an interview don’t always make it to the employment agreement or the warm feeling human resource policy document.

Verbally spoken provisos that define term of employment will never form legal argument.

If expectations aren’t clearly defined in a comprehensive employment agreement, then the law defines the space.

Then you should know that you have the rights under the labour laws but not the advantage.