Landing a job you’ve been aiming for, especially in a company you’ve dreamed of working for, is an exhilarating feeling. It’s undeniably worthy of celebration. While celebrating your new job offer, it is easy to get caught up in the excitement and rush and overlook the minute details in the paperwork, i.e., the offer letter.
However, this can be a costly error in some instances, making reading the paperwork thoroughly from end to end crucial. As the saying goes, “The devil is in the details,” and reading and understanding each point in the offer letter can help you make an informed decision as to whether to accept the offer or decline it. But how? It’s fair to say that the average person may not understand the terms and clauses included in the paperwork. To help with that, we’ve put together a simple yet effective guide of the aspects you should pay attention to while reading the letter.
Job description & workplace policies
Although one is bound to discuss what the job role entails with HR or the management well ahead of receiving the offer letter, understanding the job description is essential. For instance, there may be certain tasks that are a part of the job, although they could have been overlooked by the employer during the hiring process. Knowing exactly what the job asks of you is vital to be able to determine if you want to accept the offer letter and perform well if you choose to take up the job.
Another key aspect is the workplace policies the company follows. This is one of the things individuals tend to miss out on while discussing the job, salary, etc.When an organization’s work culture and policies aren’t employee-friendly and don’t allow a healthy work-life balance, the remuneration and other perks don’t matter. The unhealthy work culture may result in the job being unfulfilling and subsequent burnout. Both the job description and the work policies need to be outlined comprehensively to avoid challenges later on.
Restrictive covenants
In the simplest terms, a restrictive covenant is a condition that limits or prohibits certain actions of an individual named in an agreement. Businesses often try to safeguard themselves by having restrictive covenants, especially non-compete agreements, where the candidate signs an agreement that states that he/she will not become or join the organization’s competitor in the future. In case the paperwork includes a non-compete clause, the employee will have to analyze and make a decision best suited to their interests.
Employment period and termination clause
One of the first things you’ll find in online job portals today is the option to choose what kind of employment you are looking for – part-time or full-time. However, irrespective of this, one must be aware of whether the employment is permanent or contract-based. In contract-based employment, the individual must know the terms and conditions that come along with it and what compensation the company is providing.
Further, candidates must carefully read the termination clause thoroughly before signing the offer letter. This is to ensure that you are aware of what will ensue in case the organization decides to terminate the contract and lay off the employee in an unprecedented manner.
Terminating or laying off an employee will have to be done in accordance with both the contract agreement and the country’s labor laws. If it’s not, then an appropriate recourse mechanism can be considered by the employer. Candidates also need to know the notice period they will have to serve if they resign from the job or even in case of termination and the compensation involved in such scenarios.
Intellectual property clause
An intellectual property clause is when an employee assigns the ownership of his/her ideas and innovations to the company, transferring the ownership. If the organization issues an intellectual property clause to the employee at the time of onboarding being well aware of the terms and conditions is a must. The clause must state the terms and conditions clearly and in a straightforward manner. In case of the absence of a clause, the employee’s inventions and ideas solely belong to them.
Bottomline
Any kind of employment contract can be slightly intimidating to read, especially when there are complex legal terms involved, leaving you confused as to what you should look for and where. While there are other critical aspects one should consider, such as the CTC and net take-home salary, transfer and promotion policies, etc., the aforementioned will give you a fair idea of the sections you must read carefully and comprehend. Even if this delays your acceptance of the offer letter, entering a contract without being fully informed can prove to be a blunder. Applying a bit of due diligence is the best way to go.
(The writer, Roma Priya, is the founder of Burgeon Law)
