Check an employment contract online before you sign
Job offers come in clean PDFs and bury the real terms in the fine print. Green Flagged scans every clause against an employment-contract checklist so you know exactly what you're agreeing to before you accept.
8 red flags we look for in employment contracts
Non-compete broader than role and geography
Enforceability varies by jurisdiction, but anything global or industry-wide is a major red flag.
Discretionary bonus with no objective criteria
If "bonus targets to be set" never gets resolved, you'll never see the bonus.
IP assignment covering work done outside hours
Standard IP clauses cover work-product; clauses covering side projects or pre-existing IP are aggressive.
Unilateral right to change terms
Clauses letting the employer change duties, location, or hours without your consent are common and usually unenforceable but worth flagging.
Probation period >6 months
Probation that exceeds local statutory limits silently waives protections you'd otherwise have.
Garden leave longer than notice
Garden leave should not exceed your contractual notice unless you're being paid full salary throughout.
Vague termination causes
"Material breach" without examples; "unsatisfactory performance" with no review process; "loss of trust" — these are all designed to lower the firing bar.
Arbitration with employer-paid arbitrator
Mandatory arbitration where the employer selects and pays the arbitrator is an enforceability red flag.
What to read in this employment contract
Role and duties
Specific role, reporting line, primary work location. Avoid "and other duties as assigned" without scope limit.
Compensation and bonus
Base, bonus structure with objective targets, equity grant with vesting schedule and acceleration triggers.
IP and inventions
Limited to work product. Exclude pre-existing IP via schedule; exclude inventions developed on your own time with your own resources.
Non-compete and non-solicit
Narrow scope, narrow geography, ≤12 months, with paid garden leave during the restricted period.
Termination and notice
Notice should be mutual and reasonable for your level. Severance for senior roles is standard.
Governing law and dispute resolution
Local court is usually fine for employees; mandatory arbitration with employer-paid arbitrator is not.
Frequently asked about employment contract
Are non-competes in employment contracts enforceable?
It depends heavily on jurisdiction. They are largely unenforceable in California, increasingly limited in the EU and UK. Where enforceable, they must be narrow in scope, geography, and time.
What should a fair severance look like?
1-2 weeks per year of service is a common floor for non-senior roles; 3-12 months base for senior roles. Acceleration of equity vesting on without-cause termination is standard at growth companies.
Does the employer own everything I create on the side?
Standard IP clauses cover work done within scope of employment. Broad clauses covering all your time and IP are increasingly unenforceable; insist on a schedule of pre-existing and excluded IP.
Should I sign before I've negotiated?
No. Once you sign, leverage drops to zero. Get every clarification in writing — especially bonus criteria, equity acceleration, and termination cause definitions — before signing.
Does Green Flagged understand German Arbeitsvertrag specifics?
It flags structural issues (probation length, notice periods, non-competes) and provides German-law context where it's clearly relevant. For BAG-specific language, a German employment lawyer is still the right call.
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