Why Your Employment Agreement Matters
An employment agreement is a legally binding document. Once signed, it governs your entire working relationship with your employer. Yet most employees sign without reading it carefully.
Key Clauses to Review
- Salary and Benefits: Ensure the CTC breakdown, variable pay, and benefits match what was verbally offered
- Notice Period: Standard is 1–3 months — confirm you are comfortable before signing
- Non-Compete Clause: Restricts you from joining competitors. Check duration and scope carefully
- Intellectual Property: Anything created during employment typically belongs to the company
- Probation Period: Usually 3–6 months with shorter notice periods during this time
- NDA: Review what information you must keep confidential and for how long
Red Flags to Watch For
- Vague salary components with large "discretionary" bonuses
- Non-compete period longer than 1 year
- Clauses allowing salary reduction without consent
- No mention of annual increment or performance review
ArrtaMoney's legal team can review employment agreements. Consult our Legal Advisory services.