4 Red Flags to Look Out for in Employment Contracts

You have gone to a job interview and been told that you have qualified for the advertised post. You are overwhelmed by joy knowing that you beat other people, and now the hard part is over. The day comes for you to report or start working from home, and the employer hands you an employment contract. You can’t wait to put your signature over the dotted line and get started. 

If you are thinking of skipping the fine print and just sign the contract, you need to think again. Taking the time to read every page and learn the legal jargon of your contract may not seem fun. 

However, it is crucial you get to know what is written in your employment contract before you jot down your signature. This will help you identify any red flags that might be in your employment contract and maybe save you a lot of trouble. 

You might even consider using a lawyer; HKM employment lawyers in Chicago can help you review your job contract can help you avoid a lot of trouble. 

1. Pressure to Sign the Contract

This may not be something written on the contract. However, if you notice that your employer or HR professional is pressuring you to sign the contract leaving you with no time to review it, that is a red flag. Do not yield to the pressure. 

You should not sign any contract that you have not thoroughly reviewed, understood or aren’t comfortable with. 

2. Inconsistency between Original Job Posting and Contract’s Job Title and Duties

Before you do anything else on that job contract, cross-reference the job details with the original job posting. If you notice any discrepancies between the two, that is a huge red flag. Raise the issue with the HR or hiring manager. The issue might just be a clerical error that can be amended without any problem. 

If the HR professionals or HR manager maintain the job title and description on the contract is what is on offer, yet it is not what you had applied for, do not accept it. The small inaccuracies about the job may seem trivial but can have a major impact on your salary, duties, responsibilities and even future career progression. 

3. Incorrect and Unreasonable Compensation Package Details

Many employers are fond of failing to keep on their side of the bargain regarding employee benefits packages. Even though you may not know of any such incidences with the employer offering you a job contract, it is safe to ensure everything regarding your employee benefits package is included in your contract. 

If the number of annual leave days, health benefits, bonuses or commission are unreasonable or not desirable, it is a red flag that you should not take lightly. Ensure everything about your compensation package has been transparently recorded in your contract. If there is anything that you do not understand, ask for clarification before signing the contract. 

4. Unreasonable Restrictive Clauses

Employers take advantage of this section to completely disregard the rights of their employees. If you are not cautious, you may be entrapping yourself. If you notice the restrictive clauses – non-competence clause, non-solicitation clause, confidentiality clause, and ownership clause- are unreasonable, too vague or too last too long, then you need to contest. 

The restrictive clauses should not be one-sided, favoring only the employer. For example, either party should be liable if there is a breach of contract

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