10 Must-Know Factors About An Employment Contract

Bangalore: An Employment Agreement is a tricky thing and needs to be handled cautiously. Every candidate must read an employment agreement thoroughly and understand all aspects of it before signing it. Hidden clauses or loopholes in an agreement can cost an employee a lot and can even adversely affect his/her career. Here are a few factors one must keep in mind while agreeing to the terms of a contract.

1) Pay Package and Perks:

The first thing a new joiner thinks about his/ her job is the salary or the pay-package. After all, monetary gain is one of the essentials of a job, though not the only one. Thus, it becomes exceedingly important for an employee to thoroughly clarify all doubts pertaining to this aspect. An employment agreement should clearly mention the basic pay, deductions and perks of an employee. It is advisable to have all information regarding pay in a written form in order to avoid discrepancies in the future. Pay based on performance or meeting targets should also be mentioned in the employment contract. One should also clarify the mode and date of payment of salary.

2) Job Description, Duties and Reporting System:

An 'employee-to-be' should mandatorily ask about his job roles, duties, responsibilities and tasks before signing a contract. It is of utmost importance that a person understands what is expected of him/ her because failure to understand job roles can have hazardous effects on both, the employee and the organization. If one does not fully comprehend the job roles, one might get frustrated, irritated, error prone, display poor performance at work, depressed and can even be suicidal. The adverse effects of a job not well understood are many because if one does not like his job, he will never be happy with it.