Most people understand the feeling of excitement that follows receipt of a job offer. This joy can sometimes cloud our judgment when it comes to dotting the Is and crossing the Ts of the employment contract that is going to play a big part in ruling the ongoing relationship. Not only that there may be conditions in the contract that will impact our future career once that employment ends and we move on to pastures new.
When you receive your shiny new employment contract you may be inclined to gloss over parts of it. You would be forgiven for concentrating on the opportunity and potential financial rewards.
How can legal advice on an employment contract add value?
You will want to be confident that the terms of the employment contract are clear on the extent of your rights and obligations. This may be particularly important if you are in a senior or executive role, perhaps with statutory directorship responsibilities.
It may go against the grain but there is also the question of what will happen at the end of the contract. How much notice are you entitled to receive before the contract can lawfully be terminated by your employer? May the company end the contract at once and pay you only basic salary in return? Are there post-termination restrictions that might hamper your next move?
You should expect to promise to keep sensitive company information secret (this is a common law obligation implied into all contracts of employment, the duty to keep trade secrets) but may want some freedom in relation to intellectual property rights if, for example, you work in design.
Restrictive covenants are a topic all on their own. How long does the contract require you not work for a competitive business or approach former customers, colleagues or suppliers? Perhaps you will want some customers to be excluded from this obligation if, say, you introduced them to the business in the first place.
The main point is that there is usually an imbalance in bargaining power when it comes to agreeing employment contracts and this usually favours the interests of the employer. Your best opportunity to level the playing field in terms of what is agreed will be to negotiate before the employment contract is signed.
A good employment lawyer can advise you on any potential issues.
This blog was written by Ben Lindsay, Solicitor at didlaw.
