What to check before signing an employment contract

You've been offered a new job. The salary looks good, the role is exciting, and you just want to get started. So you skim the contract, sign it, and move on.

That's what most people do. And it's a mistake.

Employment contracts contain clauses that can affect your career, your side projects, and your financial security for years after you leave the company. Here's what to look for.

1. Non-compete clauses

A non-compete restricts where you can work after leaving the company. Some are reasonable — 6 months in a narrow field. Others are absurd — 2 years across an entire industry. Check the duration, geographic scope, and what counts as "competing." If it's too broad, negotiate it down before you sign.

2. Intellectual property assignment

Many contracts include a clause assigning all intellectual property you create to the company — even work done outside office hours on your own equipment. If you have side projects, a blog, or freelance work, this clause could mean the company owns all of it. Look for language like "all works created during the term of employment" and push for a carve-out for personal projects.

3. Termination notice period

How much notice does the company need to give you? How much do you need to give them? Asymmetric notice periods — where you must give 3 months but they can let you go with 1 week — are more common than you'd think. Make sure both sides are balanced.

4. Probation period terms

During probation, your protections are often reduced. Shorter notice periods, fewer benefits, and easier termination. Check how long probation lasts, what happens at the end (automatic confirmation or review?), and what rights you have during this period.

5. Overtime and working hours

Some contracts include an "all-in" clause where your salary is supposed to cover any overtime. Others cap your hours but don't specify what happens when you exceed them. Know what you're agreeing to — especially if the company culture involves long hours.

6. Confidentiality scope

Confidentiality clauses are standard and reasonable. But watch for overly broad definitions of "confidential information" that could prevent you from using general industry knowledge in your next role. Also check how long the confidentiality obligation lasts — some survive indefinitely.

7. Dispute resolution

Where and how will disputes be resolved? Some contracts require arbitration (which can be expensive and favor employers) rather than court proceedings. Check the jurisdiction — if you work remotely from France but the contract says disputes are handled in Delaware, that's a problem.

What to do next

Don't just read the contract — understand it. If any clause feels unclear or one-sided, ask for changes before you sign. It's much easier to negotiate before you're an employee than after.