Entering the workplace, signing a labor contract is a necessary step.
However, many people, due to lack of experience or not reading the contract carefully, may fall into traps hidden in labor contracts.
Today, let’s talk about common labor contract traps.
@Workplace “newbies,” save this!
“Overbearing” Contracts
An “overbearing” contract refers to clauses in which the company can arbitrarily dismiss employees, exempt itself from responsibility, exclude employee rights, or restrict an employee’s right to resign.
Such clauses may seriously harm employee rights, but because they violate the law, they are considered invalid.
When signing a contract, job seekers should review it carefully. You can object to any “overbearing” clauses, and if your legal rights are violated, you can apply for arbitration to have such clauses declared invalid.
“Collateral” Contracts
Some companies may require employees to agree in the contract to have their ID documents withheld or personal property or financial interests used as collateral to ensure contract performance.
If the employee fails to fulfill the contract, they may not be able to retrieve their documents or could suffer property loss.
Job seekers do not need to agree to hand over their ID or personal property as collateral. By law, such clauses are not allowed in contracts. If your ID or property has already been withheld, you can file a complaint with the labor inspection department.
“Non-Compete” Contracts
Non-compete or non-competition agreements restrict employees from joining competitors or starting a similar business for a period after leaving the company.
These are usually seen in key or confidential positions, but some companies require all employees to sign them.
If you encounter such a contract, evaluate it carefully, as it can seriously affect your career freedom and future development.
When signing a non-compete agreement, check the compensation you’ll receive during the restriction period and the penalties for violating it.
Make sure the non-compete’s duration and scope are reasonable and won’t unnecessarily hinder your future career.
“Dual” Contracts
A “dual” contract means there’s a difference or conflict between the official written contract and informal verbal agreements.
Some unscrupulous companies may make verbal promises about benefits or rights that aren’t written into the contract, or may not honor them in practice, or change contract terms verbally at any time.
Job seekers should ensure that the formal contract matches all verbal agreements to avoid falling for these tricks.
Only what’s written in the contract counts—verbal promises alone are basically unreliable.
“Blank” Contracts
A “blank” contract is one where important terms—such as contract duration, salary, job position, work location, or working hours—are left unspecified, allowing the company to fill them in as it pleases later.
This can lead to uncertainty and loss of benefits for employees.
When signing, make sure all terms are clearly stated and nothing is left blank.
Pay special attention to the contract signing date—make sure it’s clearly agreed upon and not left blank.
Before signing any contract, don’t rush. Read every clause carefully. If you have questions, consult a professional. Negotiate and amend anything you disagree with.
Finally, contracts should be signed in duplicate—keep one copy for yourself as backup in case you need it as evidence.
Understanding and avoiding these traps will help you protect your legal rights and ensure a smooth career.
