Receiving a job offer is an exciting milestone. After the patience and effort of navigating the recruitment process, it's gratifying to see your hard work pay off. However, the journey doesn't end with a "You're Hired" email. The next crucial step is carefully reviewing your employment contract. Understanding the terms and conditions, benefits, and overall offer is essential to ensure you're making a well-informed decision. But how do you evaluate whether an offer is truly advantageous? What should a fair employment contract include?
Why Do You Need To Assess Your Employment Contract?
Atty. Jude Jose Latorre, an experienced trial lawyer and former Chair of the Human Resource Management Program at De La Salle-College of Saint Benilde, emphasized that negotiation doesn't end with a successful job application. It extends into the crucial phase of researching and proactively reviewing your employment terms to ensure that your professional goals and expectations are aligned with those of the company, which is vital for your career growth.
"A poorly written employment contract could be missing out on standard provisions or may have confusing contents. It can be, for example, a vague description of the job function," Atty. Jude said in an interview with Cosmo.
"This lack of clarity can give rise to disorientation among the personnel. If the job expectations are not spelled out, it can be a possible source of conflict later on with the employer," he added.
Ensuring that everything aligns with our professional goals is a responsibility we must take seriously. However, we understand that not everyone is equipped to evaluate whether an employment offer is beneficial, particularly when it comes to the specifics outlined in the contract we are about to sign.
How To Assess Your Employment ContractFirst of all, congratulations! You've successfully made it past the application process. However, before the excitement fully sets in, your first priority is to request a copy of your employment contract.
"By all means, request for a copy of your employment contract since it will serve as a guide and reference for the undertakings to be carried out," Atty. Jude advised.
According to Atty. Jude, here are certain references and provisions you should look out for in an employment contract:
Classification of Employment: You have to identify if the role you're being offered is a regular and non-regular position. Atty. Jude explained that regular employment usually starts after successfully completing a probationary period and is indefinite unless terminated, retired, or upon death.
On the other hand, non-regular roles, which include "project-based, seasonal, fixed-term, or casual employment," have a specific time frame.
Atty. Jude said that a separate arrangement, like that of an independent contractor, isn't governed by labor laws but by the Law on Contracts. For instance, freelancers like web developers or graphic designers are contracted for specific results and are given autonomy in how they achieve the agreed-upon output.
Moreover, with the rise of remote work opportunities from international employers, it is crucial to ensure that "the terms and conditions of the employment contract comply with Philippine laws," as Atty. Jude advised. Despite possible "differences in responsibilities, compensation, and benefits," the contract must still align with the legal requirements in the Philippines to protect the employee's rights.
Job Description: This may be the most basic part but it is crucial to double-check if the scope of work indicated is specific to the position you're applying for. Atty. Jude clarified that this helps prevent "job creep," which occurs when you're asked to do tasks outside your agreed responsibilities.
Contract Duration: If you're a regular employee, the contract may state that the role is indefinite, meaning there's no set end date.
Compensation and Benefits: Atty. Jude stressed that your salary and any additional perks should be clearly detailed. If benefits like vacation and sick leave aren't provided, the Labor Code mandates service incentive leave of five days after one year of service. Even if these aren't specified in the contract, you're still entitled to legally mandated benefits, including overtime pay, holiday pay, SSS, PhilHealth, Pag-IBIG, and more.
Restrictions and Limitations: Contracts may include clauses that, if violated, can result in liability. These include:
- Term observance: Requires fulfillment of the agreed time frame (e.g., a two-year contract), and premature termination is discouraged.
- Confidentiality clause: Prohibits sharing company trade secrets.
- Non-compete clause: Prevents you from working for a competitor or starting a similar business after leaving the company. This restriction is usually time-bound.
- Non-solicitation clause: Prevents you from approaching the company’s clients or employees in a way that harms your former employer.
What's Next After Assessing Your Employment Contract?
- Clarify with your employer
If certain references or provisions in your employment contract don't seem to align with what was initially discussed during the application process, it's best to clarify with your employer. It might feel intimidating to ask too many questions as if you're risking the opportunity, but that's not the case. In fact, clarifying these details will give you peace of mind in the long run.
- Don't be afraid to negotiate
Don't hesitate to negotiate, whether it's about compensation, benefits, or even the job description. Negotiating doesn't mean you’re ungrateful; it's a healthy part of the process. Remember, a job offer should benefit both parties, not just the company.
- Seek assistance if needed
You're not expected to master labor laws overnight or perfectly understand every detail in your contract. Feel free to seek advice from HR professionals, labor experts, or lawyers to fully grasp the terms of your offer and make an informed decision.
