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Employment Negotiating Checklist
| Date employment is to begin. |
| Length of employment: Is employment for a definite term (e.g., one year) or at-will (e.g., terminable at any time with or without notice)? If a definite term, is the contract renewable after the expiration of the original period? Can one or both parties terminate the agreement prior to the expiration of the term? How much notice must be given before the termination is effective? |
| Define the employee's title. |
| Specify employment duties. Will the employee report to a superior? |
| Number of required working hours, sick days, holidays and vacations. If the employee does not use sick days and holidays, can they be taken in the following year, are they lost, or will the employee be paid for them? |
| Employment status: Is the individual considered an employee or independent contractor? |
| Amount of base salary: When is it payable? Specify all deductions from the employee's paycheck. |
| Are expenses reimbursable? What, when, how and to what extent? |
| Are bonuses paid? How are they calculated and when are they paid? Are prorated bonuses given if the employee is fired or resigns prior to the natural expiration of his/her contract? |
| Are commissions paid? If so, specify how they are earned. Is the commission a gross or net amount: If net, what deductions are included? |
| Are there fringe benefits? For example, does the company offer use of an automobile, free parking, car insurance, gasoline allowances, death benefits, prepaid legal services, medical, dental and hospitalization costs, life insurance, company credit cards, stock options, pension and profit-sharing plans? Be sure to advise the employee of all of the ramifications of the benefit package (e.g., when does the pension or profit-sharing plan vest?). |
| Possibility of job advancement. Are periodic raises given? What is the procedure for merit raises? |
| What happens in the event of disability? Define the meaning of temporary and permanent disability. |
| Discuss the company policy in terms of maternity and paternity leave. |
| Is a physical examination necessary? |
| Will relocation ever be required? If so, specify who will pay for it and the manner of reimbursement. |
| Can the employee have side ventures in a non-competing business or must the employee work exclusively on a full-time basis? |
| Will the company require the employee to sign an agreement containing a restrictive covenant prohibiting him/her from working for a competitor or setting up a competing business? If so, for how long will the restriction last and what territory will be involved? |
| Who owns inventions and processes created by the employee during employment? |
| How will formal notices be communicated by one party to the other? |
| Can the contract be assigned? |
| What happens if the company is sold, acquired or merged during the employee's employment? |
| Will disputes be handled by litigation or binding arbitration? |
| It is also a good idea to discuss other matters which should be included in the company manual:Time clock regulations (if any) |
Copyright 1995 Steven M. Sack
FAQs
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