Chapter 2 of 8 · 6 checks · 4 min
Read the offer and contract
Know what kind of arrangement you are signing, who your legal employer is, and how pay, notice and ownership work before you accept.
Find out whether you will be an employee or an independent contractorMust
Why it matters and how to check
This single fact decides who handles your taxes, whether you get paid leave and benefits, and how easily the arrangement can end. The IRS explains that a worker is generally an employee if the business controls what is done and how, and an independent contractor if the worker keeps that control, judged across the whole relationship. GOV.UK notes that employment status shapes your rights and can differ between employment law and tax.
Many remote developers abroad are hired as contractors, sometimes for work that looks like full-time employment. Know which one you are and what it means in your own country.
Check it: the contract states your status in plain words, and you know what leave, benefits and tax obligations come with it.
Do
- Ask directly: employee, contractor, or employed through a third party?
Avoid
- Assuming you get paid leave or benefits without it being in writing
Know which legal entity employs or pays youMust
Why it matters and how to check
Remote hiring often uses a third party. You might be employed by the company's local entity, by an employer of record that employs you on the company's behalf, or engaged as a contractor directly by a foreign company or through a platform.
The entity named on the contract is the one you would deal with over unpaid wages, termination or tax documents. It may not be the company whose product you work on.
Check it: you can name the legal entity on your contract, its country, and who to contact about pay and contract issues.
Do
- Read the party names at the top of the contract
Avoid
- Starting work before a contract with a named legal entity is signed
Confirm pay amount, currency, schedule and who covers transfer feesMust
Why it matters and how to check
Your contract should state the amount, the currency, the pay frequency and the payment method. For contractors, it should say when invoices are due and how many days the company has to pay them.
Ask who covers transfer and conversion fees. On international payments, fees and exchange margins can noticeably reduce what reaches your account, and that should be agreed upfront, not discovered on payday.
Check it: you can calculate roughly what will reach your bank account each month from the terms in the contract.
Do
- Ask which payment provider will be used
- Get pay review timing in writing if it was promised
Avoid
- Verbal promises about raises or bonuses that are not in the contract
Read the notice period, probation and termination termsShould
Why it matters and how to check
Check how much notice either side must give, whether there is a probation period with shorter notice, and what you are paid if the contract ends. Contractor agreements can often be ended with very little notice.
These terms decide how much savings you need as a buffer, and how carefully you should plan before resigning from a current job.
Check it: you know exactly how much notice you would get, and you have savings to cover at least that period plus your job search.
Do
- Note the notice period on both sides
Avoid
- Resigning from a stable job before the new contract is signed
Check the IP, confidentiality and outside work clausesShould
Why it matters and how to check
Contracts usually assign the work you do for the company to them. Read whether the clause is limited to work for the company, or claims anything you create during the contract, including personal and open source projects.
Also check rules on side work. Some contracts forbid working for anyone else, which matters if you freelance or have a second role.
Check it: you know whether your personal projects and open source work are affected, and you have disclosed any existing side work if the contract requires it.
Do
- Ask for personal and open source projects to be excluded if the clause is broad
Avoid
- Signing a clause that claims all your work without reading it
Agree who provides your laptop, software and internet costsNice to have
Why it matters and how to check
Some remote employers ship a laptop or pay an equipment allowance; others expect you to use your own. Find out which, who owns the equipment, whether you must return it, and whether internet, coworking or power backup costs are reimbursed.
If you use your own laptop, ask what security software or management the company will require on it, because that affects your privacy.
Check it: equipment, ownership, return rules and any allowances are written in the contract or an official policy you have a copy of.
Do
- Get equipment ownership and return rules in writing
Avoid
- Installing company device management on a personal laptop without understanding what it can see