How to Review an Employment Contract with AI

An employment contract (sometimes called an employment agreement) lands in your inbox attached to an offer email, and you have a few days to sign it. The salary is right and the role sounds good, but the document itself is dense, and the clauses that restrict what you can do after you leave, who owns the work you produce, and how much notice either side must give are easy to skim past. AI can read an employment contract in seconds and explain what each clause actually commits you to before you put your name to it.

AI will not tell you whether the terms are standard for your industry, whether a non-compete clause is enforceable in your jurisdiction, or whether you should negotiate. Those are questions for an employment lawyer or HR professional. But it can get you from "I do not understand this document" to "I know exactly what to ask about" in under twenty minutes. This tutorial shows you how.

What you will learn

• Get a plain-English summary of any employment contract in under two minutes
• Identify your key obligations: working hours, notice periods, probation terms, and post-employment restrictions
• Find clauses that assign ownership of your work, ideas, or inventions to your employer
• Spot unusually broad or one-sided restrictions before you sign
• Know what questions to raise with the employer or an employment lawyer
• Walk into a signing decision with a clear understanding of what you are agreeing to

In this guide

• Who is this for
• How AI reviews an employment contract
• Common employment contract clauses you will encounter
• Before you review an employment contract with AI
• Step 1: Upload your employment contract
• Step 2: Get a plain-English summary
• Step 3: Check the contract type and structure
• Step 4: Review salary, benefits, and working hours
• Step 5: Check probation and notice periods
• Step 6: Find your post-employment restrictions
• Step 7: Check intellectual property and inventions clauses
• Step 8: Check governing law and dispute resolution
• Step 9: Ask for a risk summary
• Step 10: Decide what to do next
• Worked example
• Common employment contract red flags
• Questions to ask the employer
• Common mistakes
• When AI is enough and when it is not
• Privacy and document security
• Before you sign: checklist
• Prompts you can copy
• What you learned
• Next step
• Related tutorials
• Frequently asked questions

Who is this for

This tutorial is written for people who receive employment contracts but do not review them professionally. That includes:

• Employees receiving a first offer of employment and reviewing the contract before signing
• People moving from one role to another who want to understand how the new terms differ from their current position
• Contractors or consultants being offered a permanent role with a formal employment contract for the first time
• Anyone who has been told "it's a standard contract" and wants to understand what they are actually agreeing to

If you are an HR professional, employment lawyer, or recruiter, the prompts in Steps 4 through 7 may still be useful as a starting framework for reviewing unfamiliar contract formats.

How AI reviews an employment contract

Before getting into steps, it helps to understand what the AI is actually doing when it reads your contract.

LearnByAI uses Retrieval-Augmented Generation (RAG). It does not answer from general knowledge about what employment contracts typically say. It reads your specific document, finds the relevant clauses, and answers based on what is actually written there. You can read more about how AI document chat works.

When you ask about your notice period, the AI finds the termination clause in your contract and tells you what it says. It does not tell you what a typical notice period looks like in your sector.

AI handles this well	A human professional is still needed
Explaining what each clause says in plain English	Advising whether a clause is enforceable in your jurisdiction
Finding your specific obligations, restrictions, and time limits	Assessing your statutory employment rights
Identifying clauses that are one-sided or unusually broad	Advising on negotiation strategy
Comparing what you were promised verbally against what is written	Interpreting how the contract interacts with company policies
Summarising post-employment restrictions and IP obligations	Advising on whether to sign, negotiate, or decline

Keep that distinction in mind throughout this tutorial.

Common employment contract clauses you will encounter

Most employment contracts are built from the same set of core clauses. Knowing what each one does before you start asking questions makes the review faster and helps you spot anything unusual.

Job title and duties. This defines your role and what you are expected to do. Some contracts include a broad "and such other duties as may be required" clause that gives the employer significant flexibility to change your responsibilities.

Salary and benefits. This covers your base pay, when it is reviewed, bonus entitlements, and any other benefits such as pension contributions, healthcare, or equity. Pay close attention to whether bonuses are contractual or discretionary.

Working hours. This sets your expected hours, whether overtime is paid or unpaid, and whether you are required to opt out of working time regulations.

Probation period. This sets the length of the probationary period, what happens if it is extended, and what the notice period is during probation, which is often shorter than the post-probation notice period.

Notice period. This sets how much notice you must give to resign and how much notice the employer must give to terminate your employment. Notice periods during and after probation are often different.

Confidentiality. This restricts what you can share about the employer's business, clients, and proprietary information, both during and after employment.

Intellectual property and inventions. This determines who owns the work you produce, the ideas you develop, and any inventions you create during your employment. Some clauses extend beyond work done in company time or on company equipment.

Post-employment restrictions. Also known as restrictive covenants, these clauses limit what you can do after you leave: working for competitors (non-compete), approaching former colleagues (non-poach), and contacting former clients (non-solicitation). The enforceability of these clauses depends on their scope and the law of the governing jurisdiction.

Garden leave. This clause allows the employer to require you to work out your notice period at home, not working, while remaining employed. It is often used alongside post-employment restrictions.

Governing law. This determines which country's or region's employment law applies to the contract and how disputes must be resolved.

Seeing a long list of clause types can feel daunting. Most employment contracts contain standard provisions that are widely understood and routinely signed. The goal of this tutorial is to help you identify anything that is unusual or one-sided, not to treat every obligation as a problem.

Before you review an employment contract with AI

Reviewing an offer letter before the full contract arrives. Many employers send an offer letter before issuing a formal contract. You can upload the offer letter using the same process and ask the AI to identify any terms that seem unusual or that you would want to confirm appear in the final contract. This is useful preparation, not a substitute for reviewing the contract itself when it arrives.

Scanned PDFs may reduce accuracy. If your contract was scanned as an image rather than saved as a text-based PDF, the AI may not read it correctly. If the AI cannot find a clause you can see on screen, copy the relevant text into a Word document and upload that instead.

Check whether a staff handbook or policy document is referenced. Many employment contracts incorporate company policies by reference rather than including them in full. The contract may bind you to documents you have not yet seen. Ask the AI whether any external documents are incorporated.

One document per session. Upload the employment contract you want to review. If you have received a revised version after negotiation, see How to Compare Two Contract Versions with AI.

Work from a copy. Keep the original document in a secure location and upload a copy.

Step 1: Upload your employment contract

Go to the AI HR Document Review page and upload your employment contract. Once the document is processed, you can start asking questions immediately.

Step 2: Get a plain-English summary

Start with a summary rather than a specific question. The summary gives you the shape of the contract before you look at individual clauses.

Prompt to use:

Summarise this employment contract in plain English. What role does it cover, who are the parties, is it permanent or fixed-term, and what are the key terms at a glance?

What a good response looks like:

This is a permanent employment contract between Nordfield Technology Ltd ("Employer") and the employee for the role of Senior Product Designer. The contract is full-time at 37.5 hours per week. The base salary is £72,000 per year, reviewed annually at the employer's discretion. There is a six-month probation period with a one-week notice period during probation. Post-probation notice is three months on either side. The contract includes a twelve-month non-compete clause, a twelve-month non-solicitation clause, and a broad intellectual property assignment covering all work produced during employment.

If the summary does not match what you were told verbally or during the interview process, note that discrepancy before going further. Oral promises that did not make it into the written contract are generally not enforceable.

Step 3: Check the contract type and structure

Before reviewing individual clauses, confirm what type of contract you have and how it is structured. This context affects how every subsequent clause should be read.

Prompt to use:

Is this a permanent or fixed-term contract? Is it full-time or part-time? Does the contract reference any external documents, policies, or staff handbooks that I would also be bound by?

What a good response looks like:

The contract is for permanent, full-time employment with no fixed end date. Section 1 confirms the employment is full-time at 37.5 hours per week. Section 14 states that the employee is also bound by the Company's Employee Handbook, IT Acceptable Use Policy, and Disciplinary and Grievance Procedures, all of which are stated to form part of the contract. These documents are not attached to or included in this contract.

The reference to external documents matters. If you are bound by a staff handbook you have not seen, ask for copies before signing. The AI can confirm which documents are incorporated, but it cannot review documents that are not uploaded.

Step 4: Review salary, benefits, and working hours

This step confirms that what is written matches what you were offered, and flags any conditions attached to benefits you may have assumed were straightforward.

Prompt to use:

What does the contract say about salary, bonuses, benefits, and working hours? Are any benefits discretionary rather than contractual, and are there any conditions attached to them?

What a good response looks like:

Section 4 sets the base salary at £72,000 per year, paid monthly. Section 5 states that the employee may be eligible for an annual performance bonus at the employer's absolute discretion, with no guaranteed minimum. The contract does not specify the bonus calculation methodology or a target amount. Section 6 includes private medical insurance and pension contributions of 5% employer matched against 3% employee. Section 7 sets standard working hours at 37.5 per week, Monday to Friday, but Section 7.2 states that the employee may be required to work additional hours as needed to fulfil their role without additional payment.

A discretionary bonus with no stated methodology means the employer has no contractual obligation to pay it, even if you meet every performance target. That is worth understanding before you factor the bonus into a financial decision based on this role.

Step 5: Check probation and notice periods

Notice periods and probation terms are among the most practically important terms in any employment contract. They determine how much flexibility either side has, and they are frequently different during and after probation.

Prompt to use:

What are the probation period terms? How long is it, can it be extended, and what is the notice period during probation? What is the notice period once probation is passed?

What a good response looks like:

Section 8 sets a six-month probation period. Section 8.2 states the employer may extend the probation period by up to three months at its discretion, with written notice. During probation, either party may terminate the contract with one week's notice. After probation, Section 9 requires three months' written notice from either party to terminate the employment. Section 9.3 states the employer reserves the right to make a payment in lieu of notice rather than requiring the employee to work out the notice period.

A three-month notice period is relatively long. Check whether that matches your expectations and whether you have any competing obligations from a current role. The payment in lieu of notice clause means the employer can end the relationship quickly if it chooses to, without requiring you to be present.

Step 6: Find your post-employment restrictions

Post-employment restrictions are the clauses most likely to affect your career after you leave. They are also the clauses most frequently described as "standard" when they are anything but. Read them carefully.

Prompt to use:

What post-employment restrictions does this contract contain? Include non-compete, non-solicitation, and non-poach clauses. How long do they last, what activities do they restrict, and what geographic area do they cover?

What a good response looks like:

Section 17 contains three post-employment restrictions. First, a non-compete clause that prohibits the employee from working for, or providing services to, any business that competes with Nordfield Technology Ltd in the field of digital product design for twelve months after the termination date. The clause does not define "competes" or limit the restriction by geography. Second, a non-solicitation clause that prohibits the employee from approaching or accepting work from any client of Nordfield Technology Ltd that the employee had contact with in the twelve months before leaving. Third, a non-poach clause that prohibits the employee from encouraging or inducing any colleague to leave Nordfield Technology Ltd for twelve months after termination. All three restrictions apply regardless of whether the employee resigns or is dismissed.

A non-compete with no geographic limit is unusually broad. Whether it is enforceable depends on the governing law, but the absence of any geographic boundary is the kind of drafting that warrants legal advice before signing, particularly if you work in a field where your options after leaving would be significantly constrained.

If the contract also includes a garden leave clause, where the employer can keep you at home on full pay during your notice period while the restrictions begin counting down, the combined effect can be longer than either clause suggests on its own. Step 8 covers how to ask about garden leave specifically.

Step 7: Check intellectual property and inventions clauses

The IP clause determines who owns the work you produce, the ideas you develop, and any inventions you create during your employment. Some clauses extend beyond working hours or company equipment, which can affect personal projects.

Prompt to use:

What does the contract say about intellectual property and inventions? Who owns work I produce during employment, and does the clause extend to work done in my own time or on my own equipment?

What a good response looks like:

Section 15 states that all intellectual property created by the employee during the course of their employment vests automatically in the employer. Section 15.2 extends this to inventions, designs, and software created by the employee that "relate to or are capable of being used in" the employer's business, even if created outside working hours or without using company equipment. Section 15.3 requires the employee to disclose any such inventions to the employer promptly. There is no carve-out for personal projects that pre-date the employment or that are unrelated to the employer's business activities.

The extension to work done in personal time is the part to focus on. If you maintain a side project, open-source work, or any creative output outside your role, ask whether the contract as written would capture it. A clause that extends to anything "capable of being used in" the employer's business is very broad, and whether it is enforceable as written may depend on how a court interprets it in your jurisdiction. For more prompts covering IP and inventions clauses, see the Employment Contract Review Prompts page.

Step 8: Check governing law and dispute resolution

The governing law clause determines which legal system applies to the contract. For employment specifically, it also affects which statutory rights you hold and how disputes must be resolved.

Prompt to use:

Which country's or region's laws govern this employment contract? How must disputes be resolved, and is there a specific tribunal, arbitration, or mediation process specified?

What a good response looks like:

Section 20 states that this contract is governed by the laws of England and Wales. Any disputes arising from the employment are to be referred first to the company's internal grievance procedure, as set out in the Employee Handbook. If unresolved, disputes are to be referred to ACAS early conciliation before either party may bring a claim in the Employment Tribunal. There is no arbitration clause.

In England and Wales, employees have specific statutory rights regardless of what the contract says. The reference to the grievance procedure in the Employee Handbook reinforces the importance of obtaining that document before signing. Knowing the governing law also helps you understand which rights are floor-level protections that the contract cannot override, and which terms are genuinely negotiable.

Step 9: Ask for a risk summary

Once you have worked through the individual clauses, ask the AI to bring it together.

Prompt to use:

Based on this employment contract, what are the three to five most important things I should be aware of or consider before signing? Focus on clauses that are unusual, one-sided, or could create practical problems.

What a good response looks like:

Four points stand out. First, the non-compete clause in Section 17 has no geographic limit, which makes it broader than standard. Whether it is enforceable as written depends on the governing law, but it is worth querying before signing. Second, the intellectual property clause in Section 15 extends to work created outside working hours that relates to the employer's business, which could affect side projects or freelance work. Third, the annual bonus is entirely discretionary with no stated methodology, meaning there is no contractual basis for a claim if it is withheld. Fourth, the contract binds you to an Employee Handbook and two additional policies that are not attached. You should request and review those documents before signing.

This summary gives you a practical basis for any conversation with the employer or an employment lawyer.

Step 10: Decide what to do next

After Step 9, you are in one of three positions:

• The contract looks reasonable. The terms match what you were offered, the restrictions are proportionate, and you understand what you are signing. Proceed.
• There are specific points to raise. You have identified clauses to query or negotiate. Use the AI's output as the basis for that conversation.
• You need professional advice. The post-employment restrictions are broad, the IP clause is unusually wide, or the stakes are high enough to justify an employment lawyer reviewing the contract before you sign.

Worked example

Here is a complete walkthrough.

Situation: A software engineer receives an employment contract from an early-stage startup. The recruiter described it as "fairly standard for a tech company." He uploads it to LearnByAI before responding.

Initial summary prompt:

Summarise this employment contract in plain English. What role does it cover, is it permanent or fixed-term, and what are the key terms at a glance?

AI response:

This is a permanent full-time employment contract between Halcyon Labs Ltd and the employee for the role of Lead Backend Engineer. The base salary is £95,000. There is a three-month probation period with a two-week notice period during probation. Post-probation notice is three months from either party. The contract includes a non-compete clause of twelve months, a non-solicitation clause of twelve months, and an intellectual property assignment covering all work produced during employment. Section 12 also includes a garden leave provision allowing the employer to place the employee on garden leave during any notice period.

What this tells him: The headline terms match what he was offered. The non-compete, non-solicitation, and garden leave clauses are worth investigating in detail before he accepts.

Follow-up prompt:

What do the post-employment restrictions in this contract say? How long do they last, what do they restrict, and is there any geographic limit?

AI response:

Section 16 contains two post-employment restrictions. The non-compete clause prohibits the employee from being employed by or providing services to any company that develops or sells software products in competition with Halcyon Labs Ltd for twelve months after the termination date. The restriction applies globally with no geographic limit. The non-solicitation clause prohibits the employee from approaching or accepting work from clients or prospects that the employee had material dealings with in the eighteen months before leaving. There is no corresponding restriction on clients approaching the employee. The restrictions apply whether the employee resigns or is dismissed by the employer.

What this tells him: A global non-compete in the software industry with no geographic boundary is unusually broad. It could restrict him from taking roles at a wide range of companies for a full year after leaving, regardless of where in the world he works. The enforceability of a restriction this wide is likely to depend heavily on applicable law.

Follow-up prompt:

What does the intellectual property clause say? Does it extend to work done outside working hours or on personal equipment?

AI response:

Section 13 assigns all intellectual property in work created by the employee during the course of their employment to Halcyon Labs Ltd. Section 13.2 extends this to software, algorithms, and technical inventions that the employee develops outside working hours if they "relate to or arise out of" the company's business or any project the employee is involved in. Section 13.3 includes a prospective assignment, meaning any future work that meets that description is automatically assigned to the employer at the point of creation. There is no carve-out for pre-existing personal projects.

What this tells him: The prospective assignment in Section 13.3 combined with the broad "relates to" language could capture personal projects, open-source contributions, or side work in any area overlapping with Halcyon Labs' business. He should ask for a carve-out for named personal projects before signing.

Follow-up prompt:

Which laws govern this employment contract and how must disputes be resolved?

AI response:

Section 19 states the contract is governed by the laws of England and Wales. Employment disputes must first be referred to the company's internal grievance process. If unresolved, either party must attempt ACAS early conciliation before bringing a claim in the Employment Tribunal. There is no arbitration clause.

What this tells him: England and Wales is a familiar jurisdiction and provides him with statutory employment protections that the contract cannot override. The ACAS step before tribunal is standard for UK employment disputes.

What to verify with a lawyer: Before signing, he should take the non-compete and IP clauses to an employment lawyer. A global non-compete and a prospective IP assignment covering future personal work are both non-standard and worth professional advice before acceptance.

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Common employment contract red flags

Not every unusual clause is a dealbreaker, but certain patterns are worth pausing on before you sign.

Non-compete with no geographic limit. A restriction that applies globally with no defined territory is broader than what is typically enforceable. Enforceability depends on governing law, but the absence of any boundary is worth querying before signing.

IP assignment extending to personal time. A clause that captures work done outside working hours or on personal equipment, particularly one with "relates to the employer's business" language, can affect side projects, open-source contributions, and freelance work.

Entirely discretionary bonus with no methodology. If the contract provides for a bonus but states that it is payable entirely at the employer's discretion with no stated criteria, you have no contractual basis to claim it, regardless of your performance.

Probation period that can be extended without limit. Some contracts allow the employer to extend probation indefinitely or repeatedly without defining a maximum total length. This can delay your access to post-probation rights and notice protections.

Garden leave plus restrictive covenants. Garden leave and post-employment restrictions both restrict what you can do after your employment ends. Where both apply, the practical effect can be that you are unable to work in your field for a significantly longer period than either clause suggests in isolation.

Incorporated documents you have not seen. If the contract binds you to a staff handbook, IT policy, or other documents that are not attached, you are being asked to sign a commitment without knowing its full scope. Request all incorporated documents before signing.

Duties clause with no meaningful limit. A clause requiring you to perform "such other duties as may reasonably be required" is standard. A clause with no qualifying language at all gives the employer wide latitude to change your role substantially without your consent.

Questions to ask the employer

Once you have completed your review and identified anything unusual, these questions give you a way to raise specific concerns before signing. Most employment contract issues are resolved through a direct conversation with HR or the hiring manager.

On the non-compete: "Can the non-compete clause be limited to a specific geographic area or to companies the employer can demonstrate are direct competitors?"

On the IP clause: "Can the intellectual property clause include a carve-out for personal projects that pre-date my employment and that I can list by name?"

On the bonus: "Can the contract specify a target bonus amount or a methodology for calculating it, even if the final decision remains at the employer's discretion?"

On incorporated documents: "Can I receive copies of the Employee Handbook, IT Acceptable Use Policy, and any other documents referenced in the contract before I sign?"

On the probation period: "Is there a maximum length for a probation extension, or can the period be extended indefinitely?"

On garden leave and restrictions together: "Given that I would be on garden leave during my notice period and subject to restrictions for twelve months after leaving, can the post-employment restrictions be shortened to reflect that?"

Raising these questions specifically and in writing is more productive than a general objection. The AI's clause-by-clause output gives you the language to be precise.

Common mistakes

Assuming the contract matches the verbal offer. Oral promises made during interviews or negotiations are not enforceable unless they appear in the written contract. Check each term you care about against what is actually written.

Skipping the post-employment restrictions. These clauses appear near the end of the document and affect your career after you leave, not your day-to-day work. Read them before you sign, not when you are about to resign.

Not requesting incorporated documents. If the contract binds you to a staff handbook or policy document, you need to read those documents before signing. Asking for them is reasonable and expected.

Treating the probation notice period as permanent. The notice period during probation is often much shorter than the post-probation notice period. Make sure you note both figures and understand when each applies.

Uploading a scanned image PDF. Employment contracts that were printed and scanned are images, not text. The AI cannot read them reliably. Always upload a text-based PDF or DOCX.

Signing without asking about documents not attached. Policies referenced but not included in the contract can contain significant obligations. Always confirm what those documents say before you are bound by them.

When AI is enough and when it is not

For most employment contracts, AI gives you a solid foundation. You understand what each clause says, you have identified anything that looks unusual, and you know which questions to raise before signing.

A human employment lawyer or HR professional is worth the time when:

• The post-employment restrictions are broad. A global non-compete, a long non-solicitation period, or restrictions with no clear scope limit can significantly affect your options after leaving. An employment lawyer can tell you whether they are enforceable as written.
• The IP clause extends to personal time. If the contract claims ownership over work you do outside of employment, particularly in areas overlapping with the employer's business, legal advice is worthwhile before you sign.
• The financial package is complex. Equity, carry, deferred bonuses, clawback provisions, and vesting schedules all require careful review. AI can explain what the words say, but the financial implications of these structures often warrant specialist input.
• The governing law is unfamiliar. Employment law varies significantly by jurisdiction. AI cannot tell you which clauses are unenforceable as a matter of statute in your country or region.
• You are being offered a senior or executive role. Executive service agreements often contain bespoke terms around severance, change of control, and long-term incentives that go well beyond a standard employment contract.
• You have reservations you cannot articulate. If something feels wrong but you cannot pinpoint why, that is a reason to get a second opinion, not a reason to dismiss the feeling.

Use AI to arrive at that professional conversation well-informed, not to skip it. For AI-assisted HR document review, see the AI HR Document Review page.

Privacy and document security

Before uploading an employment contract, consider what it contains.

LearnByAI processes documents in session-isolated storage. Your files are not shared with other users and are not used to train AI models. Even so:

• Employment contracts often include your salary, job title, personal details, and the employer's confidential terms. Review what the document reveals before uploading.
• Some employment contracts include confidentiality clauses that restrict disclosure of the contract's terms. Uploading to a third-party platform may technically fall within those restrictions. If the contract includes such a clause, review it before proceeding.
• For contracts that are part of an active dispute or legal proceedings, consult an employment lawyer before uploading.
• If you have already signed the contract and are reviewing it after the fact, the confidentiality and IP obligations may already be in effect.

Read the Security page and Privacy Policy for a full explanation of how documents are stored and processed.

Before you sign: checklist

• Confirmed the contract type (permanent or fixed-term) and whether any external documents are incorporated
• Verified that the salary, bonus, benefits, and working hours match what you were offered
• Noted whether the bonus is contractual or discretionary, and what conditions apply
• Confirmed the probation period length and whether it can be extended
• Noted the notice period during and after probation, and confirmed both figures
• Read the post-employment restrictions and noted their duration, scope, and geographic limit
• Identified whether the IP clause extends to work done in personal time or on personal equipment
• Requested all incorporated documents (staff handbook, policies) before signing
• Confirmed the governing law and dispute resolution process
• Raised any unusual or one-sided clauses with HR or a lawyer before signing

Prompts you can copy

Use these in order for any employment contract review session. Copy the prompt, paste it into the chat, and adjust any details to match your specific document. For the full set of employment contract prompts, see the Employment Contract Review Prompts page.

1. Summarise this employment contract in plain English. What role does it cover, is it permanent or fixed-term, and what are the key terms at a glance?
2. Is this a permanent or fixed-term contract? Is it full-time or part-time? Does it reference any external documents or policies that I would also be bound by?
3. What does the contract say about salary, bonuses, benefits, and working hours? Are any benefits discretionary rather than contractual?
4. What are the probation period terms? How long is it, can it be extended, what is the notice period during probation, and what is the notice period once probation is passed?
5. What post-employment restrictions does this contract contain? Include non-compete, non-solicitation, and non-poach clauses. How long do they last and what geographic area do they cover?
6. Does this contract include a garden leave clause? If so, what does it say and how does it interact with the post-employment restrictions?
7. What does the contract say about intellectual property and inventions? Does the clause extend to work done in my own time or on my own equipment?
8. Which country's or region's laws govern this employment contract? How must disputes be resolved?
9. Based on this employment contract, what are the three to five most important things I should be aware of or consider before signing?

Prompts 10 and 11 are optional follow-up questions you can use at any point when relevant.

10. Which clauses in this contract are unusual compared to a typical employment contract in this sector? Explain why they stand out based on the wording in this document.
11. Does this contract include any clawback, equity vesting, or deferred compensation provisions? If so, what do they say?

What you learned

• Start with a plain-English summary to understand the contract type and key terms before examining individual clauses.
• Check which external documents are incorporated into the contract before signing. You are bound by documents you have not seen unless you ask for them.
• Bonuses described as "discretionary" carry no contractual payment obligation, regardless of your performance.
• Notice periods during and after probation are often different. Confirm both before signing.
• Post-employment restrictions can significantly affect your career options after leaving. Read them carefully and note whether they have a geographic limit and a defined scope.
• IP clauses that extend to work done outside working hours can affect personal projects, open-source contributions, and freelance work.
• Garden leave and post-employment restrictions can combine to restrict your options for a longer period than either clause suggests alone.
• Governing law determines which statutory protections apply and which clauses may be unenforceable regardless of what the contract says.
• AI explains what the contract says. An employment lawyer tells you whether the terms are enforceable and whether they are worth negotiating.
• If you are still at the offer letter stage, review the offer letter first using the same process, then repeat this review once the full employment contract arrives.

Next step

If you receive a revised version of this contract after raising your concerns, the next tutorial covers how to identify exactly what changed and whether any changes shift the terms in your favour.

How to Compare Two Contract Versions with AI

Related tutorials

These tutorials and resources cover related tasks you may want to run alongside or after your employment contract review.

• How to Review a Contract with AI
• How to Compare Two Contract Versions with AI
• How to Review an NDA with AI
• Employment Contract Review Prompts
• How to Extract Key Dates and Deadlines from a Contract (coming soon)

Frequently asked questions

Can AI review an employment contract?

Yes. AI can summarise the contract in plain English, explain what individual clauses mean, identify your obligations and restrictions, and answer specific questions based on the uploaded document. It cannot provide legal advice, determine whether a clause is enforceable in your jurisdiction, or tell you whether the terms are standard for your sector.

Can AI identify a non-compete clause?

Yes. AI can locate post-employment restriction clauses, including non-compete, non-solicitation, non-poach, garden leave, and confidentiality provisions. It can explain what each clause restricts, how long the restriction lasts, and whether there is a geographic limit.

Can AI tell me whether I should sign an employment contract?

No. AI can explain what the contract says and flag anything that looks unusual, but it cannot recommend whether you should sign, negotiate specific terms, or seek legal advice. Those decisions depend on your personal circumstances and require human judgment.

Can AI compare two versions of an employment contract?

Yes. Upload both versions and ask the AI to identify what changed between them. This is useful if you receive a revised offer after a negotiation. The tutorial How to Compare Two Contract Versions with AI covers this workflow.

Can AI review a scanned employment contract?

It depends on the scan quality. Text-based PDFs, where the file was saved digitally rather than printed and scanned, produce the most reliable results. Scanned image PDFs may not parse correctly. If the AI cannot locate a clause you can see on screen, copy the text into a Word document and upload that instead.

What should I check before signing an employment contract?

At a minimum: salary and whether the bonus is discretionary or contractual, the probation period and notice period during and after probation, post-employment restrictions and their geographic scope, the intellectual property clause and whether it extends to personal time, which external documents (staff handbook, policies) are incorporated, and the governing law.