Employment contract: what to check before you sign

A job offer usually arrives with a deadline and a long attachment. It's tempting to sign quickly, especially if you want the job. But the contract sets the rules for your working life there, and some clauses keep applying after you leave.

This guide goes through the parts of an employment contract that matter most, what to look for in each, and what to ask. It applies to most countries, but the law where you work decides which terms are allowed. Where we give examples from a specific place, they're examples, not the rule where you live.

Before you start: get every document

An employment contract is often more than one document:

• the offer letter
• the contract or terms of employment
• policies or a handbook that the contract says are part of it ("as amended from time to time")
• a bonus, commission or share plan
• a separate confidentiality or IP agreement

Ask for all of them before you sign. If the contract says a policy "forms part of your contract", that policy can change your pay, leave or conduct rules. In the UK, for example, employers must give a written statement of the main terms on the first day, including pay, hours, holidays, probation and notice details (GOV.UK).

1. The job itself

• Employer. Which company employs you? In a group, it may not be the brand you applied to.
• Title and duties. Watch for "and any other duties as required", which can be broad.
• Location and remote work. Is remote or hybrid work written in, or just agreed in conversation? Can they move you?
• Type of employment. Permanent, fixed-term, part-time, casual. If you're called a contractor or consultant but work like an employee, ask why. It can affect your tax, leave and protections.
• Start date and any conditions. Background checks, references, visas or qualifications.

2. Pay

• Base pay. The amount, the currency, and whether it's gross (before tax) or net.
• Pay frequency and date.
• Allowances. Travel, phone, meals, housing. Are they part of base pay or separate?
• Salary reviews. Is there a review date? A review isn't a promise of a raise.
• Deductions. Can the employer deduct money from your pay, for example for overpayments, damage or training costs?
• Expenses. What will be reimbursed, and how?

3. Hours and overtime

• Normal hours and days. Is there a set schedule, shifts, or "the hours needed to do the job"?
• Additional hours. Many contracts require "reasonable additional hours". Are they paid?
• Overtime. Paid, given as time off, or included in your salary?

The rules depend on where you work. In the US, workers covered by federal overtime law who aren't exempt must get at least one and a half times their regular rate for hours over 40 in a workweek (US Department of Labor). Whether you're exempt depends on your duties and pay, not just your job title. Other countries set their own limits and rates.

4. Probation

• Length. How long, and can it be extended?
• Notice during probation. Often much shorter for both sides.
• How you'll be assessed. Are the standards written down?

Some countries limit probation. In the Philippines, probation generally can't exceed six months, the employer must tell you the standards for becoming a regular employee when you're hired, and you become regular if you keep working after it ends (Labor Code, Article 281, now renumbered Article 296).

5. Leave

• annual or vacation leave, and whether unused days carry over or are paid out
• sick leave and what proof you need
• public holidays, and whether you might work them
• parental, family and other leave

Contracts sometimes give less than the legal minimum where you work. That clause usually won't take away your legal entitlement, but it's a sign to read the rest carefully.

6. Notice and ending the job

• Notice you must give, and in what form (usually in writing).
• Notice they must give. Is it the same?
• Pay instead of notice. Can they end your job immediately and pay out the notice period?
• Garden leave. Can they keep you at home, on pay, during your notice?
• Termination without notice. Which reasons count as serious misconduct?
• Final pay. Unused leave, commission earned, deductions.

Minimum notice is set by law in many places. In the UK, an employer must give at least one week per full year of service between two and twelve years, up to twelve weeks (GOV.UK). In the Philippines, an employee who resigns without a just cause must give at least one month's written notice (Labor Code, Article 285, now renumbered Article 300). In most US states, employment is "at will" unless a contract says otherwise, so check what your contract adds.

7. Bonus and commission

Bonus clauses are where expectations and contracts most often differ.

• Discretionary or contractual? "May receive a discretionary bonus" is not a promise.
• Targets. Who sets them, and can they change during the year?
• Being employed on the payment date. Many plans pay nothing if you've resigned, or are serving notice, when the bonus is paid.
• Commission after you leave. Do you get commission on deals you closed but the client hasn't paid yet?
• Clawback. Can paid commission or a signing bonus be taken back?
• Changes. Can the employer change the plan "at any time"?

Ask for a worked example: "If I hit 100% of target, what would I be paid, and when?"

8. Non-compete, non-solicit and non-dealing

These clauses limit what you do after you leave.

• Non-compete. You can't work for a competitor, or start a competing business, for a period and in an area.
• Non-solicitation. You can't approach the employer's clients or staff.
• Non-dealing. You can't work with the employer's clients even if they approach you.

Check the length, the area and how "competitor" and "client" are defined. Narrow, short restrictions are more common than broad, long ones.

Whether these can be enforced depends heavily on where you are. In California, contracts that restrain anyone from a lawful profession are void to that extent, and this is read to cover most employee non-competes (Business and Professions Code 16600). A US federal rule that would have banned most non-competes was set aside by a court, and in September 2025 the FTC dropped its appeals (FTC), so state law still decides. In India, courts have generally refused to enforce non-competes that apply after employment ends, under section 27 of the Indian Contract Act. Many other countries ask whether a restriction is reasonable.

Don't sign on the assumption that a clause can't be enforced. Ask for it to be narrowed, or get advice.

9. Ownership of your work and side projects

• IP assignment. Most contracts give the employer what you create for the job. Check whether it also covers things you make in your own time, on your own equipment, unrelated to the job.
• Earlier work. If you have side projects, code, writing or designs from before, ask to list them as excluded.
• Outside work. Can you freelance, teach, run a small business or take a second job? Is permission needed?

10. Confidentiality

• What counts as confidential. Is it limited to genuinely confidential information, or does it cover everything you learn?
• How long it lasts. Often indefinitely for trade secrets.
• Returning property and data when you leave.
• Reporting wrongdoing. Many places protect whistleblowers regardless of the contract. Ask if you're unsure.

Other clauses worth checking

• Training costs. Do you have to repay courses or certifications if you leave within a set time?
• Relocation or signing bonus repayment.
• Changes to the contract. Can the employer change terms without your agreement?
• Monitoring and data. What can be monitored on work devices?
• Disputes. Which country's law applies, and is there an arbitration clause?

A quick checklist

Before you sign

• Ask questions in writing, and keep the replies.
• If something is agreed in a call, ask for it to be added to the contract or a signed letter.
• Notice periods, remote work, start dates and non-compete scope are often negotiable. Asking politely rarely costs an offer.
• Keep a signed copy of everything, including the policies as they were on the day you signed.

Check your contract with FileAI

Upload the contract, offer letter and any plan documents as PDF or Word files, and ask questions like "How much notice do I need to give?", "Is overtime paid?" or "Does the non-compete stop me working for a competitor?". Each answer has numbered sources: click one to see the passage it came from, highlighted on the page in PDFs. If the contract doesn't cover your question, FileAI tells you so.

FileAI reads only what's in your files. It doesn't know the employment law where you work, and it can be wrong, so read the highlighted passage before you rely on an answer.

Try the sample contract demo with no signup, or see how FileAI helps with contracts. You can start free; see pricing. Our guide on checking an AI answer against the source has a five-step check for any answer you plan to act on.

Sources

• GOV.UK, Written statement of employment particulars and Redundancy: notice periods
• US Department of Labor, Overtime pay
• Philippines, Labor Code (Presidential Decree No. 442), Articles 281 and 285 (renumbered 296 and 300) (via the Lawphil Project)
• California, Business and Professions Code section 16600
• Federal Trade Commission, FTC files to accede to vacatur of non-compete clause rule (September 2025)

This guide is general information, not legal advice. Employment law differs by country and state and changes over time: check with a lawyer, a union or your local labour department before you rely on a clause.