Employment contract advice for employees

 

It is easy to view signing a contract as a routine part of starting a job, but understanding what you are agreeing to and protecting your interests from the start is crucial. That being so, employment contract advice for employees is important, but is often not considered by employees.

In this blog post, we will explore what employment contracts typically include, the problems that may arise, and the value for employees of obtaining professional employment contract advice.

What does an employment contract include?

Contracts often vary in length and complexity, but they commonly include the following elements:

Job title and description

Start date and probation period

Salary and benefits

Working hours and place of work

Annual leave entitlement

Notice period

Confidentiality clauses

Non-compete or post-employment restrictions

Disciplinary and grievance procedures

 

Five common contract clauses that deserve scrutiny

Here are some examples of common clauses which are likely to impact on your options in the future.

1. Post employment restrictions (non-compete and non-solicitation)

 

As the name suggests, non-compete clauses prevent you, for example, from being in competition with a former employer, which is particularly relevant if you were considering setting up a business working in that industry, when your employment ended. The clause may seek to prevent you, for example, from undertaking work of a particular kind or set out a geographical area within which such activities are not permitted. It is also common for such clauses to specify a period of time that the restrictions would apply for.

It is important to be aware of how these restrictions may affect you. Professional advice may result in the clause being amended to, for example, reduce the length of the restriction or the scope of it.

 

2. Probation periods

 

Contracts often give employers the right to terminate employment with minimal notice during the probation period, or conversely the probationary period may be lengthy e.g. six months. Being aware of those provisions, and any associated policies, is likely to inform next steps.

 

3.Bonus and Commission Structures

 

Depending on the role, it is common for a significant proportion of the remuneration package to be made up of bonuses or commissions.  If this is so, it should be clear how any sums will be calculated, when payment will be made, and what conditions need to be satisfied in order to receive payment. Receiving advice may help to remove potential uncertainty and ensure that everyone is clear about what is required.

4. Intellectual property clauses

 

If you produce any content, designs, or inventions as part of your job, the contract should specify who retains ownership of copyright. The employer would typically own what is produced during working hours. However, there may be situations when things are not that simple. Advice relating to intellectual property may well help to explain what belongs to you and what is the property of the employer.

 

5. Alternative employment

 

It is common for employers to put clauses into contracts relating to alternative employment. This may mean, for example, that before accepting a second job it would be necessary to gain the consent of your current employer. The extent of the restrictions may vary as does the amount of information that the employer imposing the clause requires their employee to provide. The central issue is that such clauses often require the employee to disclose such information, and the clause entitles the employer to deny the employee’s request: the employee cannot therefore take up alternative employment.

 

What employment contract advice from a professional can do

Provide clarity

 

Contracts can be lengthy and complex. Having professional advice can remove confusion and ensure that you are fully aware of the terms and how they may affect you in the future.

Identify risks

 

A professional will highlight clauses that are restrictive, ambiguous, or potentially unfair. Having professional advice can help to identify risks that exist at the time of signing, and also those risks that may apply in the future.

Suggest amendments

 

A professional can suggest changes to clauses, such as those referred to earlier, in order to provide greater protection and flexibility.

Empower negotiation

Having the information available, and alternative options laid out, can make productive discussions with your employer more likely, whether you wish to undertake the discussions yourself or have it done on your behalf.

Protect future opportunities

As referred to above, contract clauses can severely restrict future opportunities. For example, what work you can undertake after leaving the company, whether you can undertake a second job, and what that could be etc. Gaining advice can identify pitfalls and steps can be taken to avoid them.

When should you get employment contract advice?

Ideally, you should seek professional advice in the following situations:

Before signing a new employment contract

When transitioning to a new role or promotion

When there is a contract variation

If you are being asked to sign post employment restrictions

Before resigning or being made redundant

If you’re entering into a freelance or consultancy agreement

The cost of not seeking advice

Many people hesitate to get professional advice because of the cost. However, examples of potential costs of not seeking advice are:

Losing bonus or commission payments due to ambiguous wording

Being bound by restrictive clauses that prevent future employment

Accidentally surrendering ownership of your own work or ideas

Legal fees relating to future disputes that could have been prevented

Plotkin & Chandler works exclusively in the areas of HR and employment law. Whether you would like assistance to review a contract of employment, you would like advice on the effect of a clause or you would like to discuss bringing an Employment Tribunal claim, please contact us on 020 3923 8616 to discuss your needs and requirements or email us on info@plotkinandchandler.com