What Are the Most Requested Terms in Employment Offer Agreements?
Receiving an employment offer can be exciting, but signing the employment offer agreement shouldn’t be done before ensuring it contains important clauses.
Based on our data from ContractsCounsel, we’ve found that the most requested employment offer agreement terms for both employees and employers include sign-on bonuses, non-compete clauses, confidentiality clauses, commission structures, and custom payment arrangements.
Read on to learn more about these terms, which protect both parties while ensuring the contract is in line with industry standards.
Note: The data comes from ContractsCounsel, a legal network which connects clients with vetted lawyers to draft their employment offer agreements. This research is from real, anonymized projects posted on the platform.
1. Sign-On Bonuses
A leading request from clients is sign-on bonuses, especially if they’re working in a competitive industry. Bonus amounts and payment schedules need to be clearly defined.
Takeaway: You should check when these bonuses are going to be paid. If repayment is needed, the agreement should explain if it’s made upon termination or early resignation.
2. Non-Compete and Confidentiality Clauses
Non-compete and confidentiality clauses are frequently requested by clients. These protect sensitive information while preventing competition. Many employees want to know how long these restrictions will last.
Takeaway: The agreement’s clauses need to be balanced, fair, and transparent. A lawyer will ensure that they’re legal.
3. Profit Sharing and Commission Structures
In employment agreements for industries such as sales or finance, the terms usually include information about profit-sharing, commission, and incentive pay structures.
Takeaway: It’s essential to define the performance criteria if pay is going to be linked to it. Payment schedules must be clear to reduce dispute risk.
4. Custom Payment Arrangements
Depending on the employment situation, clients sometimes ask for alternative payment terms. Maybe they want to be paid biweekly or monthly, or they want equity-based payment.
Takeaway: All payment terms must be clearly specified in writing. Vesting schedules or alternative-payment clauses should be included so everyone is on the same page.
Why This Matters
ContractsCounsel research has found that protection and compensation terms are commonly requested by clients drafting their employment offer agreements. Having transparent and customized terms is important to meet both parties’ goals and avoid disputes in the future.
Get Help With Your Employment Offer Agreement
Post your project on ContractsCounsel, where vetted employment lawyers will send you proposals for it. They’ll be able to customize the contract to meet your specific requirements and concerns.
