You did it. You excelled through a rigorous selection process, landed a brand-new role, and are just a
signature away from your start date.
If you’re tempted to skim your employment contract and skip to the dotted line, you’re not alone.
Research by pensions specialist Portafina shows that more than 53% of UK workers have accepted a new
role without reading their job contract first. But this is one time when passing over the small print
could cost you.
Your employment contract safeguards your rights as a worker, setting out in black and white your role,
responsibilities, compensation details, and other essential terms. It provides clarity on both sides
about your working arrangements and is your starting point for salary and benefit negotiations. And
though you may never need it, your contract lays the ground rules for a fair and structured grievance
and complaints process.
Before you put pen to paper, run through your employment agreement in full, ask for necessary
clarifications, and think about getting the document checked by a solicitor. To kickstart the review
process, here’s a rundown of key elements your new contract should cover – and possible red flags to
raise with your new employer.
Job title and description
The job title and description should accurately mirror the role outlined during your interview. If you
applied for a management position, make sure your title reflects your level of seniority, as it could
impact your salary banding and compensation package.
Also check the scope of the job description. Is the range of responsibilities what you discussed? Will
you be expected to perform tasks outside your area of expertise? Consult the original advert to ensure
your remit has been captured correctly.
Salary, benefits, and bonuses
While you’re unlikely to skip over salary information, don’t just flick through the figures and move on.
The surrounding text will likely include important insights into pay patterns (monthly, weekly, or
bi-monthly), overtime arrangements, standard deductions like tax and National Insurance, and salary
review schedules. This portion of your new contract may also highlight providers the employer uses for
benefits including health insurance.
This section may also map out any financial extras on offer. It might share the organisation’s benefits,
bonus, and incentive schemes, as well as your eligibility for performance-related perks and how they’re
earned and paid. Not all employers offer full benefits from day one, so it is also worth checking how
your probationary period may impact your access to benefits.
Pension plan
Since April 2019, organisations have been legally required to offer a workplace pension scheme. Unless
you opt out or don’t meet
the eligibility criteria, your employer must place 8% of your
salary – 5% of
your earnings plus a 3% company top-up – into your pension pot.
However, some businesses go above and beyond basic contributions. Even if you’re just starting out, it’s
important to know how much you’re saving for retirement. Check out the type of pension on
offer and how
your employer will help you manage and maximise your money.
Hours, location, and flexible working
The Covid-19 pandemic normalised home and hybrid working, and flexibility can be a make-or-break
differentiator for many candidates. The Adecco Group’s latest Global
Workforce of the
Future research
reveals that 30% of employees wouldn’t take a job if it didn’t allow remote working. However, not every
company offers flexibility from day one, so read this section with a close eye.
Pay particular attention to descriptions of physical working locations, in-office requirements, expected
working hours, and flexible arrangements. If you spot an ambiguous detail – or something different from
the specifics agreed at interview – now’s the time to raise it and get the correct setup in writing.
Paid leave
Although 28 days’ leave is standard for most full-time workers, holiday entitlement varies between
businesses. For example, bank holidays may or may not be included in your allocation – and, depending on
your job, some companies may require you to work on public holidays.
When reading this portion of your contract, check the particulars of your allocation, how it’s
calculated and accrued, and whether it’s carried over from year to year. Also look into other types of
absence provision, including compassionate, parental, special, and sick leave.
Sick pay and death in service benefits
Long-term sickness won’t be top of mind when celebrating a big career move, but it’s wise to understand
what’s on offer from the outset. If you’re too ill to work and eligible for Statutory Sick
Pay, you can
receive a weekly amount, decided by the government, for a set period of time. However, many employers
offer more generous occupational schemes. Your employment contract should include comprehensive
information.
While it’s unpleasant considering worst-case scenarios, be sure to take an in-depth look at your death
in service payment. This benefit could provide a tax-free lump sum for your family (typically two to
four times your annual salary) should you pass away while employed.