What to discuss when negotiating a work contract?

Kamran

Hi all,
Hope you're well! :T

High level summary

I'm thinking of accepting an offer to work with someone to help start a business. I was hoping for some advice as to what sort of topics to cover and make clear in a potential employment contract.

Detail

I've worked for 2 extremely large organisations in the past and when it came to contracts (and all the details relating to), there was a dedicated HR team to deal with these things, and given the scale of these organisations, I always found that contracts were done very much "by the book" and there was a clear policy for every element (pay, leave, bonus, sickness, maternity etc etc).

I am considering a new role within a company that's in the process of being formed - considerable smaller (headcount of about 5) and given the company is being formed (my role, partly, would involve elements in forming it too), I would be surprised if there was any HR person or whether contracts have been given much thought yet.

My question, simply, is - if I was to sit down with the owner and consider accepting a job offer - what sort of topics should I discuss / negotiate to make sure I have a comprehensive contract that "covers my back" so to speak?

Off the top of my head, the following come to mind:

1. Compensation/Benefits/Bonuses
2. Annual leave
3. Expenses and Travel arrangements
4. Working hours and environment (flexibility, working from home/office etc)
5. Equipment provided (laptop, mobile phone etc)
6. Performance indicators and Career progression
7. Contract / Employment length / Extension
8. Job Description
9. Termination / Severance / Notice

Thanks!

DCFC79

This might help

http://www.acas.org.uk/index.aspx?articleid=4209

tacpot12

One way to have a sensible conversation with the owner about your own contract is to suggest you help them create a standard employee contract for all employees.

You have a much better grasp of what is needed than many small employers, and even some large HR departments!

getmore4less

One thing to consideris do you just want to be an employee or part of the business so you benefit from it's success by more than just a salary

Ozzuk

As above, now is the time to negotiate the best deal. If you are truly helping to start this company up then sacrificing benefits/salary levels in favour of a shareholding/profit share agreement might be a good way forward. For early employees this can give far more motivation to make the company succeed.

Given how many horror stories there are around new companies and people being shafted you will likely want to discuss all this with an employment solicitor - or at the very least have them review any agreement.

Kamran

Ozzuk wrote: »

As above, now is the time to negotiate the best deal. If you are truly helping to start this company up then sacrificing benefits/salary levels in favour of a shareholding/profit share agreement might be a good way forward. For early employees this can give far more motivation to make the company succeed.

Given how many horror stories there are around new companies and people being shafted you will likely want to discuss all this with an employment solicitor - or at the very least have them review any agreement.

Thanks for all your helpful advice. Update is that sadly the entrepreneur who i was negotiating with has bailed with one month to go. Fortunately I can keep my status quo, as I hadn't gotten to the all-in stage just yet.

Thanks again