Great news! You’ve found your next job, and it seems perfect with a good work environment, the right salary, and all the skills needed for success. Before you sign your employment contract, it’s important to go through a checklist to make sure everything is as it should be.
Each company has different job details and expectations, so don’t assume they’re all the same. You don’t want to end up like the majority of Malaysians who are unhappy in their jobs.
Take the time to carefully read your contract and ask the necessary questions before making your decision.
1. Job description and responsibilities
You will have discussed the details of your new job during the interview process and follow-up, but you’d be surprised how often additional responsibilities get snuck into job descriptions. Most of the time this is relatively minor – but it’s worth an extra check to ensure what is presented is completely aligned with your expectations and capabilities.
The last thing you want is to sign something with an altered job description you can’t keep up with. That’s a surefire way to have a bad time!
2. Remuneration
The second thing you need to check is that the base salary and any bonuses or other compensations are in line with what you have been promised. This also includes details like medical insurance, other health benefits, travel expense reimbursements, mobile phone reimbursements, and more.
For salaried jobs, you are entitled to know exactly what dates and how frequently you will be getting paid. For guaranteed bonuses, the exact criteria on how to achieve these bonuses should be clearly defined in your contract. For discretionary bonuses, the details may not be included, but the information about a possibility for discretionary bonuses should be.
3. Start/end date, notice period, and cause for termination
Sounds simple, but you need to know where you stand before you begin and what the legalities are around completing your probation period. What is your official start date? If it is a contract role, what is your official end date or date of completion for a project? How long is the probation period, and what do you receive once you pass this date? Are the terms of full-time employment beyond probation subject to dates only, or a review with your manager also?
Your notice period matters because you (and your new employer) need time to manage affairs and organise things should you leave the job. Some notice periods are 30 days, some are 90 – and this could affect your chances at finding your next role, or how you handover things.
Causes of termination can be a variety of reasons, so read this section carefully. If you need clarification on what certain things mean, contact HR to ask. Ensure you understand what is being expected of you, and what actions (or inactions) could be the cause of termination. For example, some companies may be fine with you freelancing on the side, while others could consider any freelance work a conflict of interest and an immediate cause to fire you.
4. Holiday pay and sick leave
These are typically subject to the minimum legislation in each country – although companies have the right to extend these beyond their legal obligations if they wish to.
Beyond the number of days you can take for leave – annual or medical – you also want to know the details around carrying over leave days, terms around paying these out if you were to leave, and whether there are any restrictions around leave at certain times of the year. Make sure your expectations for all this are in line with the norm for Malaysia, so you don’t feel disappointed.
5. Working hours
Ah, the bane of every employee! How many working hours are mandatory, how many are ‘expected’ and how many hours are you able to work from a different vicinity, such as home or elsewhere?
Working hours and flexible working are a key concern for many employees today, and most companies are aware of this. Read the fine print around your 40-hour work week – do you need to work weekends? Is this expected of you? Will you be paid for overtime? What are the policies around flexible working?
Are these negotiable? If you have discussed flexibility during the interview stage, ensure what is mentioned in print is aligned to your verbal agreement. Set the boundaries at the beginning so there is no room for misunderstandings.
FAQ on Things to Check Before Signing a Job Contract
1. Why is it important to check an employment contract before signing?
It is crucial to check your employment contract before signing because it outlines the terms and conditions of your employment. By reviewing the contract, you ensure that you fully understand your rights, responsibilities, salary, benefits, working hours, and other essential aspects of your job. It helps you avoid any surprises or misunderstandings later on.
2. What are the key things to look for in an employment contract?
Some key things to look for in an employment contract include the job title and description, salary and compensation details, working hours and overtime policies, probationary period, termination conditions, non-compete clauses, confidentiality agreements, benefits such as health insurance and vacation days, and any additional obligations or expectations.
3. How can I ensure that the employment contract is fair and favorable for me?
To ensure that the employment contract is fair and favorable, carefully review each clause and seek clarification if needed. Compare the terms with industry standards and consult with a legal professional if necessary. Negotiate changes or additions to the contract that align with your needs and expectations, especially regarding salary, benefits, or any restrictive clauses.
4. Can I negotiate the terms of an employment contract?
Yes, it is possible to negotiate the terms of an employment contract. If you have concerns or if certain aspects of the contract are not satisfactory, discuss them with the employer or human resources representative. Be prepared to provide reasonable justifications for your requests and consider any compromises that may be necessary to reach a mutually beneficial agreement.
5. What should I do if I find discrepancies or concerns in the employment contract?
If you find any discrepancies or concerns in the employment contract, raise them with the employer or human resources department. Request clarification or amendments to address the issues. If the discrepancies or concerns cannot be resolved, it may be necessary to seek legal advice to protect your rights and ensure a fair employment agreement.
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