How your job contract could derail your career

BEFORE you sign that contract, these are the things to watch for that could get you more money, extra leave and save yourself from unemployment.

YOU might be ready to pop the champagne after scoring that dream job, but before you sign the dotted line there are a few things to look out for that could cripple your career.

Employment Lawyer Emma Thornton, from Maurice Blackburn Lawyers, knows too well that contracts can become a minefield of negotiations.

She said there was often a power imbalance between employers and employees and that professional legal advice should be sought before accepting any job or agreeing to a contract.

“It’s about the employees becoming more educated and the employers protecting their rights,” she said.

GET THE SALARY YOU WANT

Pay level and extra benefits are always a deciding factor when it comes to considering a new job. Ms Thornton said not to be fooled by the initial salary offer and promises of training, professional development and extra leave. Look beyond the first proposal and make sure that your contract specifically mentions annual salary reviews and future pay rise opportunities.

If you’re verbally promised any other benefits, be certain that they are written into your contract. “If a benefit isn’t in writing, the chances you’ll get it are very limited,” Ms Thornton said.

She said it’s much harder to start salary discussions after signing your contract. Rather than wait until you miss out on a bonus or don’t get the pay rise you expected, talk about your salary beforehand.

Understandably, you might feel awkward or even rude asking about your pay and extra benefits, but Ms Thornton has a way to approach the conversation. “Just ask them a general question. Ask if benefits are something that’s included in contract policies or if they written into enterprise agreements,” she said.

SAVE YOURSELF FROM UNEMPLOYMENT

Industries can completely change in a matter of weeks, days or even overnight. Businesses can experience rapid downturns, such as mining or high-risk start up enterprises.

Avoid being left unemployed or broke by checking your contract includes redundancy details, such as compensation pay, Ms Thornton said. Redundancy provisions can often be changed at your employer’s discretion and by law, they can be left to the basic minimum.

It’s well within your rights to request that redundancy entitlements are added to your contract, it will put you in a stronger position and ideally give you more protection than the legal minimum requires.

Do you know how many weeks of paid parental leave you’re allowed?

FUTURE PARENTS, TAKE NOTE

Some companies will include parental leave for both parents in employee contracts. This is an important consideration if you parenthood is a part of your future plans.

Ms Thornton said the key things you need to check are, how many weeks of paid parental leave you’re allowed, if you have to work a minimum period before receiving paid leave and if a reduced rate is an option. For example, you might be able to take half of your pay so you can have a longer leave.

PROTECT YOUR FUTURE

It may seem like your dream job right now, but will you be able to work in your industry if you end up leaving?

Many employers include a ‘restraint of trade’ clause in a contract to prevent employees moving to a competitor and taking clients or employees with them. Trade clauses can restrict you from working for a certain period of time or even from specific geographical areas.

Restraint of trade clauses have the potential to damage your career prospects and seriously limit your future options, but Ms Thornton said employers were well within their right to use them. “Employers are entitled to protect their business,” she said. “It’s best to get legal advice, even if it just opens your eyes to what you’re getting yourself into. It will help prepare you for what to expect if you resign.”

IS FLEXIBILITY WHAT YOU WANT?

Do you want to start late or finish early? Want to work from home? Do you have the equipment to do so?

These are all clauses you will want specified in your contract if flexibility is important to you. If your contract locks you into restrictive working hours and locations, then it’s going to be difficult to request the benefit of workplace flexibility later on.

He looks pretty happy with himself, but has he checked his contract properly?

TERMINATION TROUBLE

All employees are legally entitled to a minimum notice period if their employment is terminated or they are made redundant. Ms Thornton said notice periods can depend on your years of service, but you do have the right to negotiate longer if you feel it’s necessary. Take note that the time stated in your contract must be at least the legally set amount, but ideally you should be offered more.

EXPERT ADVICE

Knowing the ins and outs of your employment contract is the key to a successful, but safe future with your employer, Ms Thornton said.

“If you’re head hunted you do have more power to discuss the conditions of your contract,” she added.

But, like most of us, if you’re not in the position to negotiate the terms of your contract, you need to be aware of exactly what you’re signing. Your best option is to get legal advice and be confident in your decision to sign your name on a legally binding contract.

Originally published as How your job contract could derail your career