So, you’ve been offered a new job. Congratulations! The applying, interviewing, reference checking and nail biting wait for a decision is over.

Now comes the fun part- Contract negotiation. Up to this point, you’ve likely only received general information about the role and the remuneration. But an employment contract is so much more than that, and it’s important to know what to look for, what to push back on, and what things mean.

Be sure to check these key items, before signing on the dotted line:

1. Job Description and Responsibilities
   • Ensure the role is clearly defined, including specific duties and reporting structure.
   • Make sure the role aligns with what you had understood it included, and what had been discussed during the application process.
   • If you are unsure, or something is vague or does not make sense – check or ask.
2. Remuneration
   • Check the salary, payment schedule, and any bonuses or commission structures.
   • Check what is included in your compensation package, including paid time off, Superannuation, rewards schemes and salary sacrifice options.
   • If you have not discussed remuneration until this point, there may be scope for negotiation if you are unhappy with the offer, or it falls below your expectations.
   • Until you sign on the dotted line, everything is open for discussion. Just remember, if you don’t ask, you don’t get.
3. Benefits
   • Look at what else is included in addition to actual money in your pocket – health insurance, gym or social club memberships, additional Superannuation matching schemes, options to purchase additional leave, options for remote work and flexibility of hours.
   • These are items which can be included in total remuneration discussions. For example, if the Employer is unwilling to offer you additional salary, they may included some other benefits as a sweetener to get you on board.
4. Work Hours and Schedule
   • Understand the expected work hours, flexibility, and overtime policies or expectations.
   • Understand the schedule, potential rolling roster, potential for night or shift work, and any other curve balls such as regional work or travel expectations.
   • Look for words such as ‘reasonable additional hours’, ‘voluntary business development’ and ‘networking expectations’, as these may add to your total commitment of hours over the course of a month or year.
5. Duration of Employment
   • Consider whether the position is permanent, temporary, or contract-based, and any probationary periods.
   • Also make a note of how these are calculated, as it may not be clear, or may be at the Employer’s discretion to extend.
   • If in doubt, it is always preferable to have clear and defined time limits for certain expectations such as Probation, so everyone knows where they stand.
6. Termination Clause
   • Review the conditions under which either party can terminate the contract, including notice periods.
   • In particular take note of the notice period you are required to give. Not every job is forever – if you find another position, you may need to be able to leave in a hurry to take up another job. Look at the ramifications in the event of early termination.
   • If there is provision for termination for misconduct, review how such behaviour is defined, and whether there is a process the Employer must follow to arrive at such a determination. Make sure to note whether ‘misconduct’ is defined, and whether there needs to be a positive finding prior to dismissal for that reason, or at the Employer’s sole discretion (which can be troublesome).
7. Restraint of Trade, Confidentiality and Non-Disclosure Agreements
   • Be aware of any restrictions on working with competitors or sharing confidential information after leaving the job.
   • Restraint of Trade and Non-Disclosure Agreements can make it difficult to find work if you are leaving the current employer, particularly if the clauses overreach and provide for harsh penalties in the case of breach.
   • If you are unhappy with these clauses, go back to the Employer and request amendments to protect yourself in the future.
8. Intellectual Property
   • Understand ownership of work created during employment and any related agreements. Look at how far the clauses reach into your own personal life as well.
   • In the current day and age of side hustles and entrepreneurial spirit, Intellectual Property clauses during work need to be clearly defined to separate what the Employer owns (i.e. things and ideas created during work) and personal Intellectual Property (i.e. ideas and things created outside of work and belonging to the creator).
   • If in doubt, have a lawyer review the clause and provide advice prior to signing.
9. Dispute Resolution
   • Check for procedures regarding grievances, arbitration, or mediation in case of conflicts.
   • Whilst there are some conditions which underpin all Employment Contracts (such as the National Employment Standards, or Superannuation legislation), which come with defined and legislatively guaranteed mediation and arbitration resolution options, it is important to know what additional conditions will govern disputes, should they arise in the course of your Employment.
   • Whilst it may seem cynical to go in to a new job thinking of all the potential bad outcomes when you leave, just a bit of careful consideration now can save a lot of time, heartache and money, later down the line.
10. Changes to the Contract
    • Look for clauses about amendments to the agreement and how they will be communicated and how they are implemented.
    • Be careful to look for and wary of clauses allowing one party to unilaterally change, amend or add to the contract, responsibilities, reporting structure, policies or rights arising as part of the Employment.

Conclusion

Once you are happy with the Contract, terms and conditions, and satisfied that you understand and accept all of the above, it is time to sign on the dotted line.

Always make sure you retain a copy of your signed contract, and keep it in a safe (physical or digital) place, for easy access if needed. Similarly, should there be future amendments (pay rises, position changes, new policies or roles etc) make sure you retain a copy of all the amendments and correspondence relating to your employment, together.

If you have any questions or are unsure about how to read or interpret your new Employment Contract, contact our office and we can assist you through this exciting new stage of your career.