Quick take: Most people sign employment contracts without reading them carefully. Some clauses--particularly around restrictive covenants, notice periods, and intellectual property--can have significant consequences long after you leave the role.

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The Problem

An employment contract is a legally binding agreement. Once you sign, you are agreeing to every clause, including those buried on page eight. While many terms are standard, others can restrict what you do after leaving, who owns your side projects, or how much notice you need to give. The time to negotiate is before you sign, not after.

1. Job Title and Duties

Check that the job title and description match what was discussed during the interview. A vague description like "such other duties as may be reasonably required" gives the employer broad flexibility to change your role without renegotiating your contract.

2. Probation and Notice Period

Many contracts include a probationary period (typically three to six months) during which your notice period is shorter. Check what happens if probation is extended--some contracts allow indefinite extensions.

Notice periods matter more than people think. A three-month notice period means you cannot start a new job for three months after resigning, unless your employer agrees to let you go earlier or places you on garden leave.

3. Restrictive Covenants

These clauses limit what you can do after leaving:

• Non-compete: Prevents you from working for a competitor (typically 3 to 12 months)

• Non-solicitation: Prevents you from approaching the employer's clients

• Non-poaching: Prevents you from recruiting former colleagues

English courts will generally only enforce restrictive covenants if they are reasonable in scope, duration, and geography. A 12-month non-compete covering the entire UK for a junior marketing role would likely be unenforceable. But a 6-month non-compete for a senior sales director with access to confidential client relationships could stand up. Even an unenforceable covenant can deter future employers or lead to expensive disputes.

4. Intellectual Property

Many contracts assign all intellectual property created during employment to the employer. Some go further and claim ownership of work created "in connection with" your employment, even outside working hours. If you have side projects or freelance work, check this section carefully and consider negotiating a carve-out.

5. Bonus and Commission

Check whether your bonus is contractual or discretionary. A discretionary bonus means the employer can choose not to pay it. Also check whether you need to be employed on the payment date to receive it. Some contracts state that leavers forfeit any unpaid bonus, even if they worked the full performance period.

Can I negotiate contract terms?

Yes, and employers expect some negotiation, particularly for senior roles. Common areas for negotiation include notice periods, restrictive covenants, and intellectual property clauses. The key is to raise these points after receiving the offer but before signing.

Disclaimer: This article is general information, not financial, tax, or legal advice.