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Employment Agreement Negotiation: Key Issues, Preparation Tips

This page explains what employment agreement negotiation is, its key issues, and how a lawyer from ContractsCounsel can help you negotiate.

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What is an Employment Agreement Negotiation?

Employment agreement negotiations are discussions about terms in an employment agreement, such as regarding benefits, compensation, and more.

When reviewing your employment agreement, it’s important to bear in mind that this is a legally-binding contract. You want to ensure you’re satisfied with everything it contains so that you don’t risk legal consequences of breaching it.

Read the rest of this article to learn more about employment agreements and how to negotiate them effectively. We’ll cover key issues you can negotiate in your employment agreement, how to prepare for negotiations, tips for negotiating with your employer, and how a lawyer can help you achieve a favorable outcome.

What are Key Issues to Negotiate in Your Employment Agreement?

Employment contracts usually contain the following key terms. We’ve outlined what you should consider when negotiating with your employer.

  • Salary. This should include the full amount of compensation, including any bonuses. Ask your employer about the base salary increasing annually and what bonuses are available.
  • Benefits. Any paid time off, medical insurance, or other benefits will be stated. The agreement might explain how much of these the employer will cover.
  • Job role. This section of the employment contract will include your job title, duties, and tasks. You should ask if you’ll be allowed to take on other activities if you’d like to expand your career growth.
  • Termination. How you can end the contract needs to be clearly defined. This should also include what can cause early termination and any post-termination obligations, such as returning company laptops. You can negotiate benefits that come with termination, such as severance pay.
  • Non-compete. You should negotiate harsh restrictions after contract termination that can prevent you from working for the company’s competitors in a specific location and for a specific duration of time.

How Do You Prepare for Employment Agreement Negotiations?

You should prepare ahead of discussions with your employer so you increase your chance of successful negotiations. Here are some things to consider.

  • Think about your goals. This will help you gauge if the employment agreement is in line with your professional priorities, as well as identify what you’re happy to compromise on versus your non-negotiables.
  • Research your job role salary. Get a better idea of what salary is usually offered to people in similar job roles to you. Research similar job salaries online or speak to people you know who are in similar careers.
  • Remember to get everything in writing. When negotiations are done and you’ve reached an agreement, you should always get it in writing. This will protect you against any confusion or disputes in the future.
  • Review your employment contract. Before you start negotiations, make sure you understand everything in your employment agreement so that nothing is vague or misleading. Flag any concerning clauses that you feel don’t meet your needs.

If you need an employment agreement review, you should consult with a lawyer on ContractsCounsel, an online legal marketplace that connects clients with vetted lawyers. Post a project for free on the ContractsCounsel marketplace and lawyers will send you bids to work with you on the project. You can choose the best lawyer for your project based on factors such as their experience, previous projects, client ratings, and credentials.

How Do You Negotiate Your Employment Agreement?

Once you’ve prepared for your employment agreement negotiation, you should follow some tips on how to navigate the discussion.

  • Listen and ask questions. After presenting your case, you should listen to what your employer has to say and ask follow-up questions so that you encourage a two-way conversation that’s professional and respectful.
  • Get ready to compromise. It’s essential to think about your negotiables vs. non-negotiables prior to your discussion, as it will assist you in finding a middleground.
  • Avoid taking the first offer. This is because the first offer might not be the best one that you can receive.
  • Speak about your worth. You should explain why you think you deserve a higher salary or extra benefits. Mention your credentials, experience, and skills. You can also refer to research you’ve conducted to support your words.
  • Think beyond your salary. You might go into a negotiation for something, such as a higher salary, but your employer might not be able to budge on it. To prevent reaching a dead end in the negotiation, prepare alternatives you’d want, such as extra benefits.
  • Consult with a legal professional. An experienced employment lawyer will be able to guide you on the most effective way to negotiate with your employer.

How Can a Lawyer Help You With Employment Agreement Negotiations?

Since lawyers are experienced in helping people negotiate their contracts, you’ll benefit from consulting with them for assistance.

Here are examples of how they can help you.

  • They’ll check your employment contract for restrictive non-competes and one-sided terms that put you at a disadvantage.
  • They’ll help you know what requests will be reasonable and valid so you avoid hitting a dead end during the negotiations.
  • They’ll negotiate more than just your salary, such as by considering your severance, bonuses, equity, and remote work opportunities.
  • They’ll coach you on what you should say during negotiations—and what you should avoid so that you maintain a professional stance.
  • They’ll avoid accepting the first offer so that you prioritize your interests.
  • They’ll consider what happens after contract termination, so you can take advantage of benefits owing to you.
  • They’ll minimize your risks, such as advising you against accepting legally-binding terms that are unfair or unreasonable.

Do you need to hire a lawyer for an employment agreement negotiation?

You should contact a lawyer on ContractsCounsel. All lawyers on the platform are vetted and have years of experience in assisting clients with successful employment agreement negotiations. They’ll minimize your risks, protect your interests, and help you get better contract terms.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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