Employment Contract Considerations

Going to work for a competitor or troubled company

When going to work for a competitor or a troubled company then there are some financial considerations that have to be taken into account.  First and foremost assume the job will only last a year and that you will need to look for another position while you are out of work.  Given that assumption an employment contract is a must.

Employment contract

The employment contract has everything spelled out including grounds for termination, payments, insurance coverage, re-location (if you move), out placement services, and what can be disclosed.  Attorney’s fees should be covered, in additionyou should retain the right to select the attorney to be used.

Signing bonus

Bonus should cover lost benefits at current place of employment such as vesting and unpaid bonuses.  In addition there should be some amount for the “risk” taken for leaving a “sure thing” and going to a competitor or a troubled company.

Relocation Expenses

Expense should include cost differential if you are moving from a low cost housing market to a high cost market.  Moving travel expenses, broker commissions, pre-payment penalties, interest rate differentials and moving expenses for all items such as extra cars, boats, RVs etc.

Performance Bonus

Bonus should have two components short term 12 to 18 months and long term 3 to 5 years.

Termination & Compensation

The contract should cover what will be paid by whom and when. For example if you were moved will they move you back, will they pay for outplacement, status of your bonus, recommendations, and insurance coverage after termination.

Changing jobs is risky business.  Janco Associates, Inc. can help you in the process.  We can act as your agents to help you negotiate your contract or advise you on what you have been offered. 

For foriegn assginments there are special considerations, click here

 For more information see http://www.e-janco.comhttp://www-ejobdescription.com, or http://www.itproductivity.org.  +1 435 940-9300.

IT Job Descriptions  IT Hiring Kit Interview Hiring Guide IT Salary Survey
Download Salary Survey




IT Employment News

Sharepoint Developer/Architect

July 23rd, 2014

Thank you for your interest in the Sharepoint Developer/Architect. To begin the application process, please enter your information below.

- more info

Federal Judge Rejects Sen. Johnson's Obamacare Lawsuit

July 22nd, 2014

A federal judge dismissed Sen. Johnson's Obamacare lawsuit Monday on the grounds that the senator had no legal standing in the case.

- more info

Korn bringing 'Mayhem' to Mansfield

July 22nd, 2014

When you've been at it as long as Korn, particularly in a format such as heavy metal that many thought had stagnated long ago, it's hard to break new ground.

- more info

ManpowerGroup Stock Rating Reaffirmed by Deutsche Bank

July 22nd, 2014

's stock had its "buy" rating reaffirmed by Deutsche Bank in a research note issued on Tuesday.

- more info

Seven things to know about paying student loans

July 22nd, 2014

Did you know you can reduced the interest rate on your student loan by 0.25 percent just by signing up for automatic monthly debit? Or that small towns in some areas offer up to $3,000 a year to help pay back your loans? Student loan debt now tops $1.2 trillion, with an average debt of $26,500, and non-home loan debt - which includes student loans ... (more)

- more info