What You Need To Know Before Signing A Job Contract

Have you ever felt a surge of excitement when landing your first job, only to later feel unsure about what you signed up for? Many jobseekers and fresh graduates eagerly step into their careers, often seeking job hunting tips for fresh graduates and job seekers. They rush to sign job contracts without fully understanding the fine print. With years of HR experience, I’ve seen this countless times—candidates later realize they overlooked critical details that could impact their careers.

Your job contract isn’t just a formality; it’s your gateway to a promising professional journey. For those actively searching for or exploring job opportunities, understanding your employment contract is crucial. This guide will empower you to read between the lines, negotiate where needed, and sign with confidence, ensuring you’re well-prepared for what lies ahead.

Why You Should Care About Employment Contracts

Think of your employment contract as the blueprint for your professional life. It goes beyond being “just a document”; it defines your rights, outlines your responsibilities, and sets the tone for your future in the company. Overlooking key clauses or failing to clarify legal jargon could lead to complications down the line.

Signing that contract might feel like a conclusion, but it’s actually the first step in your career journey. When you fully understand the terms, you’re better equipped to embrace opportunities, avoid misunderstandings, and stay aligned with your goals.

For instance, if you’re targeting opportunities tied to high-demand courses in the Philippines, like administrative, technology, healthcare, or engineering, understanding your job contract ensures it aligns with your skillset and aspirations. Skipping this step could mean missed opportunities, mismatched expectations, or unnecessary stress.

5 Things to Look for Before You Sign

This guide highlights five crucial aspects you need to verify to ensure the agreement meets your needs and secures your career satisfaction.

1. Job Title and Role

Your job title isn’t just a label; it reflects your role, responsibilities, and potential growth path. Make sure your contract specifies duties that match the role discussed during your interview. For instance, if you applied for a marketing associate position but the contract lists mostly administrative tasks, that’s a red flag.

Here’s what you should do:

• Ensure the job title matches what was promised during the interview.

• Review the job description to confirm it aligns with your skills and future aspirations.

A clearly defined role paves the way for career advancement, especially if you’re aiming for future jobs in demand that require specific expertise.

2. Salary and Benefits

Your paycheck is more than just money—it reflects your skills and value to the company. Before you sign, ensure that the salary matches what was discussed during the interview.

Details to confirm:

• Remember, clarity matters: Is the salary gross or net? Does it include deductions for taxes, SSS, PhilHealth, and PAG-IBIG contributions?

• Check the other benefits—health insurance, allowances, bonuses, and opportunities for growth.

3. Work Hours and Leave Policies

Work-life balance is essential, so check for standard working hours, any overtime rules, and whether flexible hours or remote work options are available.

What to check:

• Ask whether remote work options or flexible hours are available—especially if your field is evolving with in demand jobs like tech-based or admin roles.

• Your contract should clearly outline working hours, overtime rules, and leave policies, including vacation days and sick leaves. Philippine labor laws entitle employees to at least five service incentive leave days annually.

4. Termination Clauses: Know Your Exit Plan

I know you’re excited to start your new role, but it’s important to think about the long term. The termination clause will outline when and how you or the employer can end the contract.

Key points to look for:

• Resignation notice period (typically 30 days)

• Grounds for termination—these must align with Philippine labor laws, which require valid reasons and due process.

If the clause feels restrictive or unfair, don’t hesitate to negotiate. After all, fairness in this area reflects how much a company values its employees.

5. Confidentiality and Non-Compete Agreements: Are They Fair?

Confidentiality and non-compete clauses are common, but they shouldn’t hinder your career progression. For example, a clause that prevents you from working in similar industries could limit opportunities for in-demand jobs in the Philippines or restrict you from pursuing a career shift.

What to watch out for:

• The duration and scope of the restrictions—are they reasonable?

• Will the clause prevent you from pursuing opportunities or exploring career shifts?

Pro Tips for Reviewing Employment Contracts

1. Take Your Time

Don’t rush. It’s okay to request time to thoroughly review your contract.

2. Ask Questions

If something is unclear, ask! It’s your right to ask about any parts of the contract that are unclear. 

3. Consult an Expert

If the contract feels overly complicated, it might be a good idea to talk to an HR expert or labor lawyer. 

4. Keep a Signed Copy

Always keep a copy of your signed contract. It’s your safeguard for future reference. 

Sealing the Deal

Signing your job contract is a big step, and as a fresh graduate or someone starting a new role, it’s essential to make sure everything is clear. Following this job hunting tips for fresh graduates and job seekers can help you navigate this process with confidence.

Take control of your career now. Ask questions, negotiate if needed, and make sure the contract aligns with your goals. By doing this, you’re setting yourself up for success and a bright future.

Before you sign, ask yourself: "Does this contract meet my needs and help me reach my career goals?" If the answer is yes, then sign with confidence. Your career is in your hands, and with the right contract, you're on your way to a successful future.