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5 Things to Check Before Signing an Employment Contract

Employment Contract

However, it is critical that you properly study this contract to understand the various benefits to which you are entitled and what the company expects of you as an employee. Typically, there isn't much room to negotiate the terms of these contracts, but you should make an informed decision since it will affect your professional life. Here are five things you should read carefully and understand before signing on the dotted line.

Job Description

When applying for a job through classified ads or an executive recruitment service, you might have read the job description, which told you what you will be responsible for and the daily duties you will have to perform depending on the position you apply for. This might be clarified more during the interview period.

Nonetheless, it is critical that you thoroughly understand the work description included in the contract. Companies may include small responsibilities in the official agreement that were not previously addressed with you. Check that you are doing exactly what you signed up for.


Monetary compensation is the greatest driving aspect for an employee, therefore before you sign a employment contract, you should cross-check whether it corresponds to the amount in your offer letter and what constitutes your pay. In addition to your basic pay, your gross salary includes things like travel and housing allowances especially in the case of overseas recruitment.

You should also keep an eye out for added benefits that may be available to you, such as a pension fund and insurance. Your employment contract should also clearly state the factors that will determine whether or not you are eligible for a bonus.

Working Hours

Your time is your most valuable asset, and giving it to a company in exchange for remuneration should cause you considerable concern. While reviewing your contract, you should be aware of when you are expected to arrive and check out each day, as well as whether there is a grace period of 10-15 minutes if you are running late. Many employers may reduce a day's pay if you are late to work three times in a row.

You should also consider whether you will be required to work on weekends and how much time you will have during your lunch break. In Pakistan, for example, the combined lunch and prayer break on Friday is two hours, whereas the lunch break on other days is one hour.

Leaves Policy

Beside the amount of days you can take for annual or medical leave, you'll want to know the specifics of carrying over leave days, the terms for cashing these out if you leave.

You should also check whether there are any limitations on leave at certain times of the year. Make sure your expectations for all of this are reasonable so that you are not disappointed.

Notice Period

Yes, you have just joined the company but understanding the notice period policy is very important. A typical notice period is one month; however, it may be longer or shorter depending on your job.

A brief notice period can be troublesome if you are let go - you will only have a couple of weeks to find a new position. An extended notice period, on the other hand, can be inconvenient if you're wanting to move and your new employer expects you to start right away.

Fulcrum Is on Your Side

Fulcrum Pvt Ltd is a company that offers outsourcing solutions, including human resource services. We hire the finest people for our clients and know how to care for our personnel. When it comes to manpower, we place a high value on compliance and meeting a certain standard. Visit our website to find out more.