Contract review guide
Employment Agreement review: what to check before you sign
Employment contracts front-load excitement (title, salary) and back-load risk (non-competes, IP assignment, termination terms). The clauses that matter most are the ones that apply after you leave.
Typical signers: employees and startup hires reviewing an offer.
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Analyze my employment contract →The 5 most common Employment contract red flags
1. Overbroad non-compete
A non-compete covering your whole industry, nationwide, for two years can freeze your career. Scope, geography, and duration should all be narrow.
2. IP assignment covering personal projects
'All inventions during employment' can capture your side projects. Ask for a carve-out for work done on your own time without company resources.
3. Vague bonus or commission terms
'Discretionary' bonuses tied to undefined targets are promises that cost the employer nothing.
4. Clawback and repayment clauses
Training-cost or sign-on clawbacks can make leaving expensive. Check the amounts and the time decay.
5. Unilateral change clauses
If the employer can change role, location, or terms 'at its discretion', the contract you signed is not the contract you will have.
Pre-signing checklist
- Non-compete narrow in scope, geography, and duration (or absent)?
- IP clause carves out personal projects on personal time?
- Bonus/commission criteria objective and written?
- Notice periods symmetrical for both sides?
- All promised perks (equity, remote days, budget) in the written contract?
Frequently asked questions
Are non-competes enforceable?
It varies enormously by jurisdiction — some ban them for most workers, others enforce reasonable ones. Regardless of enforceability, they create legal risk and chilling effects, so negotiate them down before signing.
What is a reasonable IP assignment clause?
It should cover work created for the company, using company resources, or within the company's business. It should not capture unrelated projects built on your own time and hardware.
Can I negotiate an employment contract?
Almost always, especially at startups. Non-competes, IP carve-outs, notice periods, and severance are commonly negotiated even when salary is fixed.
Review other contract types
This guide is general information, not legal advice. Laws differ per jurisdiction — for high-stakes contracts, consult a qualified lawyer.
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