5 Common Mistakes People Make When Reviewing Their Employment Agreement

1. 5 Common Mistakes People Make When Reviewing Their Employment Agreement Getting a new job offer is an exciting milestone, but before you sign on the dotted line, there's one crucial step you shouldn't rush — reviewing your employment agreement. This document defines the terms and conditions of your work, your compensation, your rights, and your obligations as an employee. Yet, many professionals make critical mistakes that could cost them financially, legally, or even professionally. If you're about to start a new position or renegotiate terms with your current employer, here's a breakdown of five common employment agreement mistakes — and how to avoid them — so you can protect yourself and your future.

2. Mistake 1: Not Reading the Entire Employment Contract It’s tempting to skim through an employment contract, especially when it’s packed with legal language and formal clauses. You may trust your employer or feel confident based on verbal agreements made during the hiring process. However, failing to read every part of the contract is a major oversight. Why It Matters: Even if everything discussed during interviews felt aligned, the final document is what truly counts. Employment contracts can include language that subtly shifts your responsibilities, extends probation periods, or alters compensation terms — and once you sign, you're legally bound by them. Example: You might have been promised a remote role, but the contract may include a clause stating the employer can change your work location at any time. If you sign without noticing, you're agreeing to it — even if it contradicts prior conversations. Tip: ● Take your time — don’t let eagerness cloud your judgment. ● Read the document in a distraction-free setting. ● Re-read any parts that seem unclear or contradictory. ● Don’t hesitate to ask for revisions if something doesn’t match what was verbally offered. Mistake 2: Overlooking Restrictive Clauses One of the most overlooked sections in an employment agreement involves restrictive covenants — clauses that limit your actions during and after

3. employment. These can significantly affect your career, especially if you plan to work in the same industry or build your own business later. Why It Matters: Restrictive clauses, such as non-compete, non-solicitation, and non-disclosure agreements (NDAs), may limit your professional freedom and earning potential for months — or even years — after you leave your role. Example: You might find that a non-compete clause bars you from working with any competing company in the same industry for a 12-month period, even if you're terminated without cause. This could severely impact your job search and financial security. Tip: ● Identify all restrictive clauses and assess their scope. ● Ask: Are the terms reasonable in time, geography, and industry? ● If a clause feels overly broad or aggressive, consult a legal professional for advice. ● These clauses can be negotiated. Don’t assume you have no say. Mistake 3: Not Clarifying Job Title and Role Expectations Many employees sign contracts assuming their daily responsibilities will match the job description discussed during interviews. However, vague or ambiguous wording in the employment contract can open the door to job creep — being asked to do tasks far outside your role. Why It Matters: Ambiguity in job duties can lead to disputes, unrealistic expectations, or being overworked without additional pay or recognition. A clear, written definition of

4. your role helps protect you from being taken advantage of and sets professional boundaries. Example: Your job title may be listed as "Marketing Specialist," but the contract might include vague language like "any duties deemed necessary by management." Without a defined scope, you could be expected to handle unrelated admin tasks or manage responsibilities meant for higher-level staff. Tip: ● Make sure the contract includes your exact title and a summary of core responsibilities. ● Clarify your reporting structure: Who do you report to? Who reports to you? ● If any part of the role feels open-ended, ask for more specifics before signing. Mistake 4: Ignoring Compensation and Bonus Structure Details While salary discussions often happen verbally, employment contracts must reflect those terms clearly in writing. Far too many professionals assume that handshake agreements or email confirmations are sufficient — but if they're not included in the contract, they may not be enforceable. Why It Matters: A poorly detailed compensation section can result in disputes over bonuses, incentives, and even basic pay. Over time, discrepancies can erode trust and impact your financial stability. Example: Your employer promises a 15% annual bonus, but your contract states bonuses are “discretionary and subject to performance.” If there’s no clear performance metric or guarantee, you may not receive it — regardless of verbal promises.

5. Tip: ● Ensure your base salary, pay frequency, and bonus criteria are written in full detail. ● Look for terms like “discretionary,” “subject to company review,” or “as determined by management” — these may signal vague or non-guaranteed benefits. ● For commissions, ensure that triggers and payout timelines are defined clearly. Also, check for benefits like: ● Health insurance ● Retirement contributions ● Equity or stock options ● Paid time off (PTO) and sick leave policies Mistake 5: Not Seeking Legal Advice Before Signing Perhaps the most critical mistake is assuming you can — or should — handle your employment agreement review alone. Even seasoned professionals often struggle to fully understand the legal nuances of their contracts. Employment law is complex and differs based on location and industry. Why It Matters: A single misunderstood clause can cost you thousands in unpaid wages, legal battles, or restricted opportunities. A professional employment contract review lawyer can help you identify red flags, explain tricky legal language, and even help you renegotiate more favorable terms.

6. Example: If you’re offered a freelance role and the contract misclassifies you as an independent contractor, you could miss out on essential protections like health insurance, paid leave, or tax benefits. A legal expert can quickly spot such misclassification. Tip: ● Hire a local employment agreement review lawyer familiar with your jurisdiction’s labor laws. ● Legal review is especially critical for senior roles, high-value contracts, or positions involving intellectual property. ● Don’t view legal review as an expense — it’s an investment in long-term security and peace of mind. Also Read: Employment Agreement Review Checklist: 10 Clauses You Must Not Ignore Bonus: Additional Things to Look for in an Employment Agreement Beyond the five major mistakes above, here are a few other key elements to carefully assess: ? Termination Clauses: ● Can the employer terminate you without cause? ● What is the notice period (for both sides)? ● Are you entitled to severance or payout of unused leave? ? Probationary Period: ● How long is the probation?

7. ● Can your employment be ended without notice during this period? ● Are full benefits available during probation? ? Working Hours & Location: ● Are working hours fixed or flexible? ● Is there mention of mandatory overtime? ● Are there remote or hybrid work conditions defined? ? Intellectual Property (IP) Clauses: ● Does the company claim ownership over any ideas or work you produce? ● Are there restrictions on using your own intellectual property? Final Thoughts: Your Employment Contract Deserves Your Full Attention Your employment agreement is more than a formality — it’s a legally binding agreement that can shape your work experience, earnings, career progression, and post-employment freedom. Whether you're starting a new job or renegotiating your terms, reviewing your employment contract carefully is essential. Avoid rushing the process. Don't hesitate to ask for revisions. And never feel uncomfortable seeking legal advice — it’s your right and responsibility to protect your career and future.