With the start of the new year, it’s common to make some work-related resolutions. I will stay on top of my inbox. I will tackle that tough project that’s been sitting in my to-do list for too long. I will exercise Zen-like composure when dealing with difficult colleagues/clients/stakeholders.
Whatever your pledges for the new work year, I want you to add the following: I will review my employment contract.
A contract of employment is a legal document between you and your employer that contains many of your rights and responsibilities at work. Don’t worry, I can hear your yawn from here. But scroll on, because what I’m about to tell you is important.
Tick which one of these scenarios you’ve come across:
“Wow, I’m so excited to start this new job! Where do I sign? [sees document, TL;DR, signs]”
“What’s that? The company is standardising its contracts across the country and you want me to sign a new one? Well I guess, if everyone else is doing it and you’re telling me I have to, then sure.”
“They have changed the bonus policy just after I met my targets and now I won’t be paid a thing.”
If you ticked one or more of these scenarios, you are not alone. Most of us tend to sign employment contracts without a second thought and leave it tucked away in a drawer, along with the annual letter advising of a pay increase.
But, the contract of employment is a Very Important Document, and one which you should drag out of the drawer and read. Better yet, get someone legally trained to read it, to advise you on the tricks and treats the document contains. In almost all occasions, the employer’s HR department has drafted a contract of employment, presented the employee with it and expected them to sign. While that is usual practice, it still surprises lots of people when they learn that contracts are mostly one-sided (to the benefit of the employer) which contain loopholes that do not help employees.
Did you know that even when your new employer presents you with a contract, that you are entitled to suggest changes to it? Did you know that if your company is ‘standardising’ their contracts (usually code for removing all employee rights), that you do not have to agree to it?
In the eyes of the law, the employer and the employee are on equal footing when it comes to negotiating contracts of employment. The Courts don’t acknowledge bargaining disparity (except in limited circumstances), which means that if you ever need to litigate, the fact of you not understanding your contract will not help you.
The classic time to negotiate is when you start a new job – that way, both you and your new boss are on the same page. Sometimes, for professional employees, new employers expect you to negotiate your contract.
As if, I hear you say. Try to negotiate your contract and the employer will tell you to get stuffed. Well, that might be case. If they say no, then you have to consider your position: is there something else you can negotiate, or is the company worth working for at all?
Studies suggest that women are less likely to negotiate their terms and conditions than men, especially when it comes to pay. There are various theories behind this: we are hardwired not to be adversarial; we don’t want to be perceived to be adversarial; we don’t want to start off a new job in a “negative” way; we see it as a painful process.
But, I have never seen a worker get something they wanted without asking for it. And I’ve never heard of anyone having a job knocked back because they wanted to change some words in a document.
Other classic times to negotiate are during performance appraisals or after a big win at work. At that time, you are on the best footing to negotiate better terms and conditions. The start of a new year is also a great time to audit your work rights. It’s at those times you should consider, “what do I want out of this job?” “what changes can be made to make my work life better?” and that is the start of your negotiating position.
Remember, it’s not all about pay. Those common scenarios we talked about earlier can all be managed in a well-worded, fair, contract of employment. For instance, you might negotiate a shorter restraint period, or for payment during a restraint period if you work in highly competitive industries. There might be a requirement for consultation about any change to policies on bonuses, or you might be able to negotiate to ensure fair processes are in your contract of employment.
Irrespective of what you do afterwards, agenda item one for all professional women in 2017 is dragging out that contract, considering “what’s in this for me?” and tackling how you’re going to get the best out of that boring legal document
