Employment Contract Red Flags: 9 Things to Check Before You Sign
Check how you are paid, how you can be let go, what you cannot do afterward, and who owns what you make. Vague wording on any of these is the main warning sign. Ask for changes in writing before the start date.
Why read it before you resign?
An offer letter and the contract that follows can differ. Read the full contract first, then give notice at your current job. Spoken promises about pay, remote work or a bonus are hard to prove, and many contracts exclude anything not written in them. Ask for them in writing.
1. Pay and bonus
Bad"Bonus at the discretion of the Company."
Better"Annual bonus of up to [percent] of salary, based on goals set in writing within [number] days of the start date."
A bonus left to discretion may never be paid. If the bonus is part of why you said yes, ask for the rules in writing: the goals, who sets them, and when it is paid.
2. Job title and duties
Bad"and any other duties as assigned."
Better"Role: [title], reporting to [role]. Main duties are listed in Schedule A."
A clear role and reporting line make it harder to change the job without asking you.
3. Probation
Check how long it lasts and what changes during it: notice, benefits, pay. A long probation with weaker rights is worth a question.
4. Notice and termination
Bad"Company may end this Agreement at any time without notice."
Better"Either party may end this Agreement with [number] days written notice."
Check that notice works both ways, and whether unused paid time off is paid out when the job ends. Termination clause: what it means covers the rest.
5. Hours, overtime and location
Are overtime and on-call time paid? Is the place of work fixed, or can the company move you? If remote work was part of the offer, it should be in the contract.
6. Non-compete and non-solicit
Check how long they last, where they apply and whether you are paid for them. The details are in Should I sign a non-compete agreement?.
7. IP and side projects
Bad"All inventions, whether or not related to the job, belong to the Company."
Better"Inventions made in the course of the job, or using Company resources, belong to the Company. Prior work and unrelated side projects are excluded."
If you have side projects or earlier work, list them in the contract.
8. Repayment clauses
Some contracts make you pay back training costs, a signing bonus or relocation money if you leave. Check the amount, how it shrinks over time, and how long it applies.
9. Confidentiality
A confidentiality duty is normal in a job. What to look for in an NDA shows the wording that goes too far.
How do I ask for changes?
Example"Before I sign, could we make the notice period [number] days for both sides?"
Keep it short and calm, and pick the two or three points that matter most. Get the answer by email, and ask for the final contract with the edits in it.
When should I ask a lawyer?
Get a review if the contract has a broad non-compete, a repayment clause, equity or options, or terms you do not understand. Many places have employee advice services or unions that help at low cost.
Can an app give a first read?
Employment contracts are one of the 14 types SignArmor recognizes. It runs on iPhone and iPad, with a web app too. It takes a PDF, a DOCX file or an image file from Files on iPhone and iPad, and PDF or TXT files in the web app. In about a minute you get a Safety Score from 0 to 100, a summary and a plain-English list of clauses to look at again.
SignArmor is not a lawyer and does not give legal advice, and it does not know the employment rules where you live. The file itself is not uploaded: SignArmor extracts the text on your device and masks phone numbers, email addresses, account numbers, IDs, names and addresses before the text goes to the AI provider. The first analysis is free and short: the score, the summary and the top red flag. Buying later opens that same report in full, with no new analysis.
FAQ
Is a probation period normal?
Yes, in many places. Check how long it is and which rights change during it.
Can an employer change my contract later?
Only in the ways the contract and local law allow. Look for a clause that lets the company change terms on its own.
Should I sign first and negotiate after?
Ask first. After you sign, you have less room to negotiate.
What should I ask before signing a job contract?
Ask how the bonus is decided, how long probation lasts and what changes during it, how much notice each side gives, whether there is a non-compete, and who owns side projects.