5 things to check in your first employment contract

Congratulations on your new job!

Your first employment contract is an important milestone in your career, so it's worth taking the time to read it carefully before signing.

Your contract may contain terms that affect your salary, working hours and future career opportunities.

1) Bonus can make a big difference

Many private-sector companies within the Life Science industry offer bonus schemes, often referred to as ‘variable pay’. A bonus is an additional payment on top of your fixed salary.

As a recent graduate, your main focus is naturally on securing your first job. It's therefore easy to concentrate primarily on your base salary and accept the offer if everything else appears reasonable.

However, a bonus can amount to several months' salary each year and may represent a significant part of your total compensation package.

Make sure you understand:

• What type of bonus scheme is offered?

• What is required to qualify for a bonus?

• Is the bonus based on your individual performance or the company's overall results?

Bonus schemes vary considerably, so it's important to know how they work, what criteria you must meet, and whether you can actively influence your bonus.

2) How much travel is expected?

Travel is part of many jobs in the Life Science industry, and when you receive your first job offer, it may sound exciting.

But it can feel very different once you're sitting in an airport for the third time in a month or spending a week visiting a manufacturing site on the other side of the world.

Many employment contracts mention that travel may be required without specifying how much.

Ask questions such as:

• Approximately how many travel days should I expect each year?

• Is travel a regular part of the role or only occasional?

• How is travel time outside normal working hours handled?

In many private companies, overtime is not compensated – including time spent travelling. If frequent travel is expected, you may end up spending a considerable amount of your personal time in transit.

This is worth considering when evaluating both the position and your salary.

3) Pay attention to restrictive clauses

It's important to understand the difference between restrictive covenants and your general duty of loyalty as an employee.

Your duty of loyalty means that while you are employed, you must act in your employer's best interests. For example, you must not disclose confidential information or work for a competitor during your employment. However, this does not prevent you from changing jobs.

Restrictive clauses, on the other hand, may limit your opportunities to take on certain roles after your employment ends.

Although such clauses are not particularly common in the Life Science industry, we do encounter them from time to time. Because they can significantly restrict your future career options, you should always have them reviewed before signing your contract.

4) Ask for the employee handbook

Not all of your employment terms and conditions are necessarily set out in your employment contract. Many companies include additional policies and benefits in their employee handbook.

The employee handbook supplements your contract and often contains information about:

• Leave to care for a sick child

• Parental leave

• Additional paid leave days

• Remote working

• Professional development and training

• Employee wellbeing and benefits

The employee handbook can be particularly relevant for example if you're planning to start a family in the coming years. Parental leave policies may vary significantly, and they can be difficult to ask about during the recruitment process.

Ask for the employee handbook before accepting the job offer.

5) Have your contract reviewed

Employment contracts can be difficult to interpret, especially when it's your first job after graduation.

That's why we always recommend having your contract reviewed before signing.

Our legal advisors have extensive experience with employment contracts in the Life Science industry and can help you understand your salary, employment terms and any potential pitfalls.

We can help you with:

• Reviewing your employment contract

• Assessing your salary and employment terms

• Advice on getting off to a good start in your new job