Employment Contract Checklist

What to Look for in an Employment Contract

An employment contract is the foundation of your working relationship. It defines your rights, obligations, and remedies if things go wrong. Yet many employees sign contracts without fully reviewing them — or realise too late that key clauses are missing or unfair.

The most critical elements are the essential terms: your job title, start date, working hours, salary, payment frequency, and place of work. Without these clearly stated, disputes about overtime pay, remote working rights, or salary increases become very difficult to resolve. Equally vital are the leave and benefits provisions — annual leave, sick pay, parental leave, and pension contributions directly affect your quality of life and long-term financial security.

Pay close attention to notice periods. Both sides should have clearly defined notice requirements. Short employer-side notice (e.g. 1 week regardless of service length) is a red flag — statutory minimums protect you, but only if the contract does not try to circumvent them through other clauses.

Restrictive covenants (non-compete, non-solicitation, garden leave) deserve careful scrutiny. Overly broad restrictions can limit your ability to work in your industry for months or years after leaving. Courts in most jurisdictions will strike down unreasonable restrictions, but you should understand what you are agreeing to upfront.

Employment Contract Requirements by Country

Minimum contract requirements differ significantly across jurisdictions:

United Kingdom: Employers must provide a Written Statement of Particulars from day one under the Employment Rights Act 1996 (as amended 2020). Statutory minimums include 5.6 weeks annual leave (28 days for full-time workers), National Living Wage compliance, auto-enrolment pension, and statutory sick pay after 4 qualifying days.

Australia: The National Employment Standards (NES) under the Fair Work Act 2009 set 11 minimum entitlements including 4 weeks annual leave, 10 days personal/carer's leave, parental leave, and flexible working arrangements. Contracts cannot undercut these minimums. Superannuation (currently 11.5%) must be paid on top of salary.

Ireland: The Terms of Employment (Information) Acts 1994-2014 require employers to provide a written statement within 2 months. Minimum annual leave is 4 weeks (20 days). Notice periods range from 1 week (less than 2 years) to 8 weeks (15+ years) under the Minimum Notice and Terms of Employment Acts.

United States: The US has no federal mandate for written employment contracts. Employment is "at-will" in most states, meaning either party can terminate without notice unless the contract states otherwise. State law varies significantly — California has particularly strong employee protections. Always check your state's specific requirements.

Singapore: The Employment Act covers most employees earning up to SGD $2,600/month. Mandatory provisions include annual leave (7 days after 1 year rising to 14 days), sick leave, and public holidays. Contracts must comply with MOM guidelines.

Common Employment Contract Red Flags

When reviewing any employment contract, watch out for these warning signs:

Vague job description: "Such duties as the employer may require" with no specific role definition gives your employer unlimited scope to change your responsibilities without agreement. Insist on a clear job title and role outline.

Excessive IP ownership: Clauses claiming ownership of all inventions, software, or creative works — including those created outside work hours on personal devices — are overbroad. A fair IP clause should be limited to work created as part of your employment duties using company resources.

Unilateral variation clause: "The employer may change the terms of this agreement at any time" without requiring your consent is a significant red flag. In most jurisdictions, fundamental changes to terms require mutual agreement.

Missing dispute resolution: Without a grievance procedure or arbitration clause, any dispute goes straight to litigation. A well-drafted contract should include an internal dispute process before escalation.

Broad confidentiality scope: Confidentiality clauses that extend to all business information indefinitely (with no carve-out for publicly available information) may prevent you from discussing your own salary — which employees in many jurisdictions have a statutory right to do.

Using this checklist before signing helps you identify gaps, ask informed questions, and — where necessary — negotiate better terms before you are bound by the contract.