Why Should You Review Your Employment Contract Before Signing?
Starting a new job is exciting, but reviewing your employment contract is an important step that should not be overlooked. An employment contract sets out important terms of your working relationship, including your pay, working hours, responsibilities, holiday entitlement and notice arrangements.
Many employees sign their contracts without fully understanding the terms. Later, disagreements can arise when an employer changes working arrangements, disputes pay or relies on a contractual clause that the employee did not realise was included.
Taking the time to review your employment contract can help you understand your rights and identify potential issues before they become workplace disputes.
What Is an Employment Contract?
An employment contract is a legally binding agreement between an employer and an employee or worker. It can contain terms agreed in writing, verbally or through the conduct of the parties.
Although people often use the term "employment contract" to refer to a written document, the legal contract can be broader. It may include written terms, implied terms, workplace policies and other contractual arrangements.
A written statement of employment particulars should also provide employees and workers with key information about their employment.
Understanding these documents before signing can help you establish exactly what you have agreed to.
Why Is an Employment Contract Review Important?
An employment contract review gives you an opportunity to understand the terms of your employment before you commit to them.
A review can help you identify:
Your basic salary and other payments
Working hours
Holiday entitlement
Notice periods
Probation arrangements
Job responsibilities
Place of work
Bonus arrangements
Pension provisions
Confidentiality obligations
Post-termination restrictions
Flexible working provisions
Clauses allowing changes to your employment terms
Some clauses may have a significant impact on your employment or what you can do after leaving the organisation.
Getting professional advice before signing can therefore be particularly useful if the contract is complex or contains terms you do not understand.
What Should You Check in an Employment Contract?
1. Salary and Payment Terms
Start by checking whether the salary stated in the contract matches what you were offered during the recruitment process.
You should also check:
How frequently you will be paid
Whether bonuses are contractual or discretionary
Commission arrangements
Overtime payments
Any salary review provisions
Deductions that the employer may make
If your offer included additional benefits, check whether these are included in the contract or another document.
2. Working Hours
Your contract should make your expected working arrangements clear.
Check your normal working hours, days of work and any provisions relating to overtime, shifts or additional hours.
If your employer has flexibility to change your working hours, pay particular attention to the wording of any flexibility or variation clause.
Contract changes generally need agreement between the employer and employee, although there can be exceptions, including where the contract contains a relevant clause allowing certain changes.
3. Holiday Entitlement
Check how much annual leave you are entitled to and whether bank holidays are included.
You should also understand:
How holiday must be requested
Whether unused holiday can be carried forward
Any rules applying to holiday during notice periods
Whether you receive additional contractual holiday above the statutory minimum
Having clear holiday terms can help avoid disagreements later.
4. Probation Period
If your employment begins with a probationary period, check its length and the conditions that apply during it.
The contract may specify:
The length of probation
Whether probation can be extended
Notice periods during probation
How performance will be assessed
A clear understanding of these terms can help you know what to expect during the first few months of employment.
5. Notice Period
Your notice period becomes particularly important if you later decide to leave your job or your employer terminates your employment.
Check:
How much notice you must give
How much notice your employer must give
Whether different notice periods apply during probation
Whether the contract contains provisions relating to payment instead of notice
Understanding these provisions in advance can prevent surprises when employment comes to an end.
Pay Attention to Restrictive Covenants
Some employment contracts contain restrictions that continue after employment ends.
These may include restrictions relating to:
Working for competitors
Soliciting clients
Approaching employees
Dealing with former customers
Using confidential business information
The enforceability of restrictive covenants depends on the wording and circumstances. Not every restriction will necessarily be enforceable simply because it appears in a contract.
If you are being asked to sign extensive post-termination restrictions, obtaining legal advice before signing may help you understand their potential effect.
What About Confidentiality Clauses?
Confidentiality provisions are common in employment contracts.
They can protect legitimate confidential business information, but employees should understand exactly what information is covered and what obligations continue after employment ends.
Some contracts may also contain provisions relating to intellectual property, data protection and company information.
If you are unsure about the scope of a confidentiality clause, consider getting it reviewed before signing.
Can an Employer Change Your Employment Contract?
Employment contracts can sometimes be changed, but the process depends on the terms of the contract and the nature of the proposed change.
Acas explains that employers and employees can propose changes to contractual terms and that changes generally need to be agreed by both parties, unless there is an applicable contractual clause or another legal basis for the change.
Changes can involve:
Salary
Working hours
Job duties
Location
Benefits
Holiday entitlement
Other terms and conditions
If your employer asks you to agree to a significant change, reviewing the original contract can help you understand what you initially agreed to.
What Happens If Your Contract Is Unclear?
Not every employment term will necessarily be contained in one document.
Some contractual terms may arise through verbal agreements, workplace policies, custom and practice or implied terms. Acas explains that certain terms can become part of an employment contract even when they have not been expressly written down.
This can sometimes make employment disputes more complicated.
For example, an employee may believe that a particular benefit or working arrangement was agreed, while the employer may take a different view.
Keeping copies of your employment documents and relevant communications can therefore be useful.
When Should You Get Your Employment Contract Reviewed?
You do not necessarily need legal advice for every employment contract. However, professional review can be particularly useful when:
You are starting a senior or executive role
Your salary package is complex
You receive bonuses or commission
Your contract contains restrictive covenants
You are changing employers
Your employer wants to change your existing contract
You are being asked to sign a new agreement
You are concerned about redundancy provisions
You are involved in a workplace dispute
You do not understand certain contractual clauses
A solicitor can explain the legal meaning and potential implications of clauses that may not be immediately obvious.
What Are the Benefits of Professional Employment Contract Review?
A professional review can help you understand your contractual position before problems arise.
It may help you:
Identify potentially problematic clauses: A solicitor can explain provisions that could create obligations or restrictions.
Understand your rights: Reviewing the contract can help clarify important terms governing your employment.
Spot inconsistencies: Your written contract can be compared with the terms discussed during recruitment.
Understand future risks: Certain provisions may become particularly important if your employment ends or your employer proposes changes.
Make informed decisions: Understanding your contract before signing can help you decide whether you want to negotiate any terms.
What If You Have Already Signed Your Contract?
Signing an employment contract does not necessarily mean that you cannot ask questions about its terms.
If you discover something you do not understand, you can ask your employer for clarification. If there is a disagreement about whether a particular term forms part of the contract, you may also consider raising the issue formally.
Acas recommends raising disagreements about contractual terms with the employer and, where necessary, using a grievance procedure.
If the issue is serious or could have significant legal consequences, independent employment law advice may be appropriate.
How an Employment Solicitor Can Help
An employment solicitor can review your contract and explain provisions that may affect your employment.
Depending on your circumstances, they may review:
Salary and benefits
Working arrangements
Notice periods
Probation clauses
Confidentiality provisions
Restrictive covenants
Intellectual property clauses
Variation clauses
Termination provisions
Redundancy terms
A solicitor may also help negotiate amendments with an employer before you sign the agreement.
For employees who want professional advice on their contractual terms,employment contract review (https://klglaw.co.uk/employment-case-review-benefits/) can provide an opportunity to understand the agreement and identify issues that may need further consideration.
Final Thoughts
An employment contract is more than a document to sign on your first day. It can define important aspects of your working relationship and may become particularly important if disagreements arise later.
Before signing, take time to understand your salary, working hours, notice period, benefits, restrictions and any clauses allowing your employer to make changes.
If you are unsure about an important provision, obtaining professional advice before signing may help you understand your position and make a more informed decision.
Note: This article provides general information about UK employment contracts and is not legal advice. Employment rights and contractual obligations depend on the individual circumstances and wording of the relevant agreement.
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