There are specific terms that should appear in an employment contract or offer letter. Some provisions are easily discernible while others may be more vague. Employers believe you to be valuable at the time of hiring. As such, it is best to incorporate as many terms and specific provisions into your employment documents prior to signing your employment contract or offer letter and before commencing employment/ giving notice to your current employer, if applicable.

See checklist below. This checklist, however, is illustrative and not a comprehensive list and is not applicable in all instances. It is best, to have the document(s) reviewed by a qualified professional who can also assist you in how to seek to incorporate these points into your documents if they are not already set forth within and if they are applicable to the role you are seeking.

1. Job Title and Job Description: Is this clear? Can the Company change this at any time with or without notification to you? What happens in they do? Is there any remedy to you?
2. Reporting Chain: to whom do you report; is there both a direct and indirect reporting chain? Are you going to have direct reports reporting to you?
3. Office Location: will you the employee is remote or hybrid or will work from home and if in office, where is the office that the employee is expected to be in
4. Term or At Will: If a term contract, is it truly the term stated at the beginning of the contract — for example 1 year — or can you be terminated on 30 days’ notice, making the contract, in essence, a 30 day contract
5. Compensation Package: Salary, Bonus(es), Commissions, Incentives, Stock, Equity – Is this what was agreed upon? Is the new company buying out deferred compensation? Is there a portion of bonus paid in cash and a portion paid in stock? Is there a vesting schedule? If starting after the fiscal year commenced will you receive a pro-rata bonus for the year? Will you receive a pro-rata bonus if terminated without cause prior to bonuses being paid?
6. Sign on Bonus: any requirements for you to stay for a period of time or pay back upon departure? Are there any claw backs?
7. Guaranteed Bonus or Bonus Based on Performance: If pay based on performance, when will you receive the metrics that you must achieve? Is the bonus to be paid now or as deferred compensation and will it be paid in cash or part in stock/equity and is there a vesting schedule?
8. Benefits: What benefits are you entitled to? When do they start? Do they include health benefits, 401K with or without a match, vacation, PTO, sick time, short/long term disability, lactation breaks, bereavement leave, etc.
9. Notice Requirements: Do you have to give a set amount of notice if you will be resigning? Does the company have to provide you with any notice if they are terminating you without cause? Can you resign for Good Reason and if so what are the requirements to do so?
10. Restrictions on Future Employment: Do you have a non-compete, non-solicitation, confidentiality agreement and do these continue if the employee is terminated without cause or only if the employee resigns. Also, do you have any of these documents with your current employer and if so does that impact your going to this new role? Does the new employer know about your current restrictions?
11. Additional Documents: What will you need to sign on the first day or shortly after starting employment: non-compete agreement, workplace inventions agreement, confidentiality agreement, acknowledgement of the Employee Handbook, commission plan, arbitration provision, etc.
12. Severance – This is generally found in executive agreements and may apply if the employee is let go prior to the end of the term or if the employee resigns for good reason. Any severance may require the employee to sign a release of claims and the contract may state what the employee might be entitled to (i.e. salary, benefits, expenses, bonus, etc.). This should be negotiated with the contract, if possible, as a no less than benefit.
13. Relocation Benefits – what are offered, any requirements to stay for a period of time, or repayment. Possibility of re-relocation benefits at a later date.

Individuals who receive new employment agreements should have them reviewed by a legal professional, prior to execution, so that all of the terms and promises discussed in the interviews are documented and to prevent a lack of clarity at a later date. Everything is negotiable. Employers will likely state that this is their standard documents, however, if they truly want to hire you, the employer will be open to discussion on certain points.

The above list is also the key points but does not delve into any legal language that may also need to be clarified.

Contact Sheree Donath at 516-804-0274 or Sheree@DonathLaw.com for assistance in having your employment contract or offer letter and the accompanying documents reviewed. As time is of the essence, you will be accommodated (speaking in the evening or weekends) to ensure that the documents are promptly reviewed and discussed with you and that you can then respond quickly to the potential new employer.

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