Understanding Employment Contracts for Software Engineers
jgefroh.medium.com - Joseph Gefroh
Understanding Employment Contracts for Software Engineers
Learn how to read your employment contract and how to protect yourself and avoid getting locked into a bad situation.
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10 min read
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Mar 7, 2021
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First off — I am not a lawyer, and this is not legal advice. I may be wrong in any of this. Use this for entertainment purposes only, and get an actual lawyer if you need one.
Over my career as a software engineer, I’ve signed a handful of employment contracts. I used to sign them without thinking, but as I grew in my professional career, I became more and more aware of the limitations (and benefits) contracts provided.
It led me to believe that all software engineers should be aware of what they are signing. In the US, provisions in contracts like non-competition agreements and non-disclosure sections, can easily take away your ability to compete within the market place.
Important provisions
Some provisions impact software engineers more than others. While the totality of the contract should be carefully examined, in particular, be sure to keep an eye out for provisions related to the following:
- Non-competition
- Non-solicitation
- Non-disclosure
- Work Product Ownership
- Moonlighting
- Arbitration
Non-competition
Non-competition provisions are contractual obligations to not compete against your employer. There’s many forms of it, but in general, they typically restrict you from joining companies defined as “competitors”.
An example:
For a period of 24 months following termination, Employee shall not directly or indirectly perform engineering services for, or be hired by, companies operating within the on-demand food delivery industry.
The wording of this prevent me from joining Oohber Eats if I was an employee of food delivery company DoreDosh. That’s not quite the end of the story though.
You can’t be prohibited from operating within your chosen profession, or using skills you’ve obtained at another company.
Source jgefroh.medium.com