Dedicated playbook for Employment Contract

Know exactly what you're agreeing to before you accept

Non-competes that block your next job. IP clauses that claim your side projects. Termination terms with no severance. Know what's in your offer before day one.

60-second analysis · No credit card · Your data stays yours

~50%
of offer letters we review contain overbroad IP assignment
24mo
typical non-compete asked, versus 6-12mo enforceable in most states
0
days of severance in the default at-will offer letter
3
clauses to negotiate before signing (non-compete, IP, severance)

What Employment Contract agreements hide in plain sight

The most common red flags we catch in this contract type.

Non-compete that blocks your next role for 1–2 years

Broad geography and industry scope that locks you out of your field long after you leave.

IP assignment covering personal projects built outside work hours

Claims inventions you create on personal time, on your own equipment, in unrelated fields.

At-will termination with zero severance defined

They can terminate tomorrow with nothing — and no defined notice period.

Bonus clawback on money already paid to you

Lets the company take back bonuses already deposited if you resign within a window.

Why this contract type is different

The three things that decide whether your Employment Contract holds up

An offer letter is not just a job description with a salary. It is a contract that governs who owns your ideas, where you can work next, and what happens if the company changes its mind. The three levers with real impact are IP assignment scope, non-compete geography and duration, and severance triggers.

IP overreach is the quietest of the three. A standard clause assigns 'all inventions conceived during employment.' Read literally, that includes the side project you started before joining and the app you build on weekends. The fix is a personal-IP schedule listing what stays yours, plus language limiting assignment to inventions related to the company's business and using company resources.

Non-competes are increasingly unenforceable in many US states and much of Europe — but uncertainty alone deters your next employer. A 6-12 month non-compete narrowly defined to actual direct competitors, paired with garden leave (full pay during the restriction) is defensible. A 24-month, industry-wide, worldwide non-compete without garden leave is not.

What ContractScan AI analyzes in your Employment Contract

A dedicated playbook — built for this contract type only.

  • Non-compete scope

    Geography, duration, industries, and any carve-outs.

  • IP assignment

    What's assigned, what stays yours, and prior-IP carve-outs.

  • Termination and severance

    Notice period, severance triggers, benefit continuation.

  • Bonus clawback

    What triggers clawback and whether already-paid amounts are recoverable.

  • Non-solicitation

    Restrictions on approaching colleagues or customers after you leave.

  • Garden leave

    Whether you stay on full pay during notice and how it interacts with non-compete.

  • Arbitration clause

    Whether you're giving up the right to sue in court.

  • Role definition

    How your position, duties and reporting line are defined — and how they can change.

Red flags we see in real Employment Contracts

Specific patterns to check for before you sign — with the fix for each.

IP clause with no personal-IP carve-out

You need a schedule of what stays yours or you assign your side projects on signature.

Non-compete without garden leave

If they want you off the market, they should pay you to be off it. No pay, no restriction.

At-will with no defined severance

Termination tomorrow with nothing — negotiate at least 3 months and stock treatment on involuntary termination.

Bonus clawback tied to voluntary resignation

Bonuses already paid should not be recoverable if you leave — only if you're terminated for cause.

Negotiation playbook

How to negotiate a Employment Contract

The concrete asks we recommend, in the order to raise them.

  1. 1
    Add a personal-IP schedule to the offer letter
  2. 2
    Cap the non-compete at 6-12 months, direct competitors only, and require garden leave
  3. 3
    Negotiate 3-6 months severance on involuntary termination without cause
  4. 4
    Add double-trigger acceleration on unvested equity (change of control + termination)
  5. 5
    Strike bonus clawback for voluntary resignation
  6. 6
    Ensure arbitration is opt-in, not mandatory — or at least excludes discrimination claims

Here's what your report looks like

Plain English. No legal jargon. Action you can take today.

Verdict
Review and Negotiate Before Signing
Score
58/100
Top 3 risks in your Employment Contract
1
Non-compete that blocks your next role for 1–2 years

Broad geography and industry scope that locks you out of your field long after you leave.

2
IP assignment covering personal projects built outside work hours

Claims inventions you create on personal time, on your own equipment, in unrelated fields.

3
At-will termination with zero severance defined

They can terminate tomorrow with nothing — and no defined notice period.

The cost of getting it wrong

Signing a bad employment contract can cost you years of professional freedom. A broad non-compete forces you to sit out or move sectors. A broad IP clause quietly gives away the side project that becomes your next company. And at-will termination without severance means the day your role is 'restructured' is also your last paycheck.

Who uses this

New hires reviewing offer letters

Understand exactly what you're signing before day one.

Employees signing amended contracts

Check what changed before the new terms take effect.

Senior hires negotiating terms

Spot leverage points on severance, equity, and notice.

Frequently asked questions

Can I negotiate an employment contract?

Yes. Non-competes, IP carve-outs, notice periods, and severance are all commonly negotiated — especially for senior roles.

Does my employer own my side project?

Depends on your IP clause. Many contracts claim all inventions during employment — including personal work done on your own time.

What if there's no severance clause?

You're entitled to statutory minimum only — often very little. Negotiate severance before you sign, not after you're let go.

Related contract types

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