What to Do, Before Signing a New Employment Contract?



At the end of recruitment process, employer might give you a job offer letter.

They normally give few days for you to decide, whether to take it or not. This will be a critical moment for you and definitely you need to think everything thoroughly by considering all of elements/aspects of the job offer such as the position and job description, reporting line, career progression and future opportunities, compensation & benefits, etc.

Besides agreeing on tangible points of the job offer such as position, compensation and benefits, there are more things you need to consider before signing a new employment contract with a new employer.

Below are some points that you need to think thoroughly before entering a new agreement.

  1. You need to fully understand and agree on all terms and conditions stated in the contract. Never sign any document without a full understanding on the content of the document. Below are some of important elements of the contract which you need to put more concerns:
  • Job Description, reporting line (superior, team structure, etc)
  • Employment Status, either a permanent employment position or a contract based? Is it directly employed with your future employer or oursourced?
  • All compensation & benefits. (gross vs net income, paid salary in one year, bonus scheme, medical benefit coverage both inpatient and outpatient). Always see the annual package when considering a job offer
  • The ideal employment contract is when KPI and business target are clearly defined in the employment contract. However, some companies do not include the information in the contract. Thus, you need to ensure that you understand the expectation of the business, targets to achieve and that you are confident to accomplish the set targets.
  1. Understanding the unwritten ones, such as corporate culture & values, working hours, working environment, people’s behaviour working in that company. It is important that you do your own business intelligence towards the company that you’re going to work for before entering a new employment.
  2. Know your future Boss! This is very crucial. Most resignation comes from a bad relationship between employee and their superior. Find the information about your future boss before signing contract
  3. Ensurethat nothing will stop you from resigning from current employer such as outstanding loan, work commitments, etc. It’s not professional when cancelling a new employment agreement due to dispute/unsettle matters with previous employer.
  4. Discuss with your family regarding all consequences by signing this agreement both monetary and non-monetary issues. New job means new life. It’s not only about the amount of money that you will receive in the bank account every month but it is also about relationship that you’re making in the new office, working hours, working location, pressures, workload etc. Everything happens in your professional life will certainly impact your personal life including family.

By considering all the above, you might be able to reduce both professional and personal risk in the future.

Do take your moment to ensure everything before signing a new employment agreement. It’s your life and your future.

Source by:





President- People Search Indonesia


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