5 things to check before signing offer letter for a new job

There is no better feeling than to go through all those gruelling rounds of an interview and come out on the other side with that much-anticipated offer letter. All the hard work and preparation finally comes to fruition when you are handed that contract. However, before you sign your employment contract, there are a few important things that you must be confident about. Let’s look at some of these particulars that must be analysed and understood before making it official.

1.Start date and working hours

In case you are switching jobs, it is important to ensure that the last day at your old job does not coincide with the first day at your new job. Since there are multiple formalities to take care of before signing off from your previous job, make sure that you have enough time to complete them and then start afresh. Do not forget to check the start time on your joining date as coming in late on your first day will not bode well for your image as an employee.

Once you are assured that the start date suits you, check the working hours mentioned in your contract. It is important to ensure that the working hours match your expectations and designation. Since work-life balance is essential to remain productive and stress-free, you need to ensure that the hours suit you. You do not want to face a work-life imbalance by working nights and weekends just because you did not check the terms of the contract.

2.Salary and bonuses

Check to make sure that the salary mentioned in the contract is the same as what was conveyed to you during the interview. It is also important to check the pay structure and understand the difference between your cost-to-company (CTC) and in-hand salary. If you feel that the gap is more than you expected, then a discussion with the HR is necessary. After checking the base salary, also look for the bonuses or incentives that you are entitled to during the course of your employment. These could either be guaranteed or discretionary, so make sure that you know what you are owed and what you need to earn through your performance.

3.Benefits

In addition to basic compensation, many companies offer additional perks and benefits to their employees. Ask the HR to explain to you exactly what the contract says about benefits such as health insurance for you and your family, free lunches, parental leaves and more. While these perks are a great value addition to your overall compensation package, there are sometimes a few catches that you need to look out for. For instance, sometimes, health insurance plans provided by employers state that half the amount will be paid by the company and the other half will be deducted from your salary. This is still a great benefit to have, but you must be aware of such clauses under the benefits provided to you.

4.Leave policy

While talking about the particulars in your contract, the HR might not discuss the number of leaves allotted to you each month or year. However, it is very important to understand your annual leave allotment along with additional holidays that you can get. New-age employers are now offering paternal leaves along with maternity leaves, birthday leaves and even period leaves for women. Understand the entire leave structure including the sick days and casual leaves that you get. This way, you will be in a position to plan your vacations and leaves without losing out on salary.

5.Severance pay

This is one of the more important sections of your contract that you must read, discuss and understand completely. This section will comprise the pay and benefits that you are entitled to receive after the termination of your contract. Many companies offer payment in lieu of the notice period, compensation accrued against available or unused, leaves, stock options, retirement benefits or medical/life insurance. In case your contract is terminated for any reason such as mergers or closure, these details will allow you to move to your next job with just compensation. Additionally, also ensure that you read through the several conditions for termination mentioned in your contract.

Now that you have all the information you need, go ahead and sign that contract. Cheers to your new beginning!

(Author Neha Kaul is Brand and Growth Marketing head at Shine.com. Views expressed here are personal.)

First Published: Aug 08, 2019 15:32 IST