What is an Employment Agreement Renegotiation?
An employment agreement is a contract between an employer and employee. It specifies important terms of the employee’s job role, salary, rights, and more.
If you’ve received an employment agreement, you might want to renegotiate it with your prospective employment for more favorable terms.
Read the rest of this article to explore employment agreements in greater detail, what they contain, and how to renegotiate them. We’ll also look at how a lawyer will help you through the process to increase your chance of success.
When Should You Request an Employment Agreement Renegotiation?
There are specific times when a renegotiation of your contract terms might be necessary, such as:
- You’ve received positive performance reviews or a promotion that will affect your job role.
- The company that hired you is undergoing changes, such as a merger or financial changes.
- There are market changes that should update the contract, such as salary increases.
- The contract is about to expire. If both parties wish to renew it, it’s an ideal time to review its terms.
What Does an Employment Agreement Contain?
An employment contract typically includes the following key terms:
- Job duties. This section of the agreement provides clarity on the employee’s role in the company, their duties, tasks, and daily operations.
- Salary. This clarifies the salary, such as if it’s an hourly wage. It should also explain payment schedules so employees know when to expect payment.
- Benefits. Salary aside, there might be benefits the employee will gain, such as healthcare or paid time off.
- Working hours. This specifies the employee’s commitment to daily hours they will work. It should include information about how overtime will occur and be compensated.
- Term. This explains how long the agreement will last and if it can be renewed after termination.
- Termination. Notice periods and other conditions for ending the agreement must be specified to protect both parties.
- Confidentiality. This includes information about how the company protects its sensitive information, such as trade secrets.
- Intellectual Property (IP). This section explains how data and IP is protected and which party owns it to prevent disputes.
What are Red Flags in Employment Contracts?
When getting ready to renegotiate terms in the employment agreement, it’s worth checking the contract for any red flags that require revision. These include:
- Outdated templates. If the agreement is standardized or makes use of a template, it could lack specific information for your working relationship.
- Job misclassification. Errors such as missclassifying contractors or employees can result in future issues and should be amended.
- Vague terminations. You want clarity that you can end the contract instead of being locked into it, which could hamper your career opportunities.
- Inconsistent compensation. While you might want to prioritize salary review and negotiation, check the other benefits to see if they are clearly defined.
What are Tips for Renegotiating Your Employment Agreement?
There are some effective strategies to consider when entering renegotiations with your employer. These include the following that will help you advocate for yourself and achieve a better deal.
Display Your Worth
You should support your requests for changes to the agreement by highlighting how you benefit the company. Maybe you attract lots of new clients or you create systems that benefit the company’s workflows. This can be used as leverage to negotiate enhanced terms, such as benefits and salary.
Focus on Your Priorities
This will help you to guide the discussions so that you don’t waste time revising terms that don’t matter to you as much. Take time to explore the other party’s priorities, too, as this will create opportunities for making revisions to the agreement that benefit both of you.
Prepare Alternatives
If you suggest a change to your job role or other terms in the agreement but the employer doesn’t want to meet you halfway, it helps to have a prepared list of alternatives you could negotiate. You can then raise them to achieve a middle ground.
Document All Changes
Don’t neglect to rewrite the agreement with the new agreed-on terms. You can hire a lawyer to do this for you so that it’s clear and professional. If you rely on verbal agreements, you’ll put yourself at risk of future backtracking or misunderstandings.
Consider Your Growth and Goals
When considering the agreement terms, think about how you wish to grow in your position. If the agreement isn’t enabling this, such as by keeping you limited in your job role, it could restrict your career opportunities.
Review the Agreement
Before stepping into the negotiation room, you should refer to the original employment agreement so you can have a clear understanding of what needs to be discussed. Hiring a lawyer to review the contract is beneficial because a lawyer will notice things that you might miss, which could provide you with leverage during the negotiation.
To request a legal review for your employment contract by a qualified lawyer, here are the steps to follow:
1. Go to the ContractsCounsel marketplace, ContractsCounsel is one of the largest online legal marketplaces where clients can connect with vetted, experienced lawyers on the platform.
2. Post your request (project) for free.
3. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
4. Once you receive the lawyer bids, review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
5. Connect with a lawyer you think is best suited to your requirements and hire them.
Where to Find a Lawyer for Employment Agreement Renegotiation
If you need to hire a qualified lawyer to help you navigate the contract renegotiation process, you can find one on ContractsCounsel. All lawyers on the platform are vetted and qualified, with years of experience in assisting clients in similar situations. By having a skilled lawyer help you through the process of renegotiating an employment agreement, you’ll increase your chance of having a successful outcome.
