Negotiating an employment contract is an exciting process. Most people preparing to take new jobs feel enthusiastic about their new job opportunities. Some professionals make the mistake of rushing through the process of negotiating an employment contract.
They might agree to terms that negatively affect their career development later or leave them without the support they need during a difficult transition between jobs. Some workers assume that they do not need to worry about contract terms because Texas is an at-will employment state. While either the employee or the business can end the employment relationship at any time without notice, the terms included in an employment contract can still have a profound impact on the workers’ future.
What do Texas professionals need to know about employment contracts?
Onboarding is when to discuss severance and benefits
Sometimes, employees accept jobs because of uncommunicated expectations. They know someone else who works for the company and expect to receive the same benefits or bonuses that the other worker earns. They may anticipate receiving severance pay if they lose their job unexpectedly. Some workers even have unspoken expectations regarding bonuses and commissions for major sales.
Workers who have yet to start their jobs are in the best possible position to negotiate favorable terms. It can be much more difficult to secure severance during termination discussions than when onboarding. The hiring process is also the right time to clarify expectations regarding bonuses, benefits, commissions and other resources that supplement base income levels.
Workers need to think about the future
Frequently, professionals sign contracts that include restrictive covenants. They may agree not to start their own company or work for a competitor. They may even agree to avoid offering coworkers job opportunities or trying to do business with clients that they meet through their new position.
Restrictive covenants integrated into employment contracts can limit the future economic opportunities of professionals, sometimes for years after they leave their positions. Workers need to balance the concessions that they make to obtain a position with the long-term impact those concessions could have on their career development and earning potential.
Frequently, employees struggle to make sense of the legal jargon included in contracts and to ensure that the terms are appropriate given their priorities. Reviewing an employment contract with an attorney before signing it and countering some of the terms proposed by an employer can be beneficial for those seeking new positions.