You have had your interview; you have looked at the practice location; you have met the leadership and potential future coworkers. You like what you see, and you decide to accept the offer of employment. This is an exciting time, and a very crucial part comes next: the "term sheet" and employment agreement.
The "term sheet," or also called a "letter of intent," outlines the salary and other compensation terms that were agreed to by you and your employer. It typically lists your actual salary, any bonuses promised, and other forms of compensation such as CME allowances. If this is acceptable, then you will ask for an employment agreement.
Essentially, the employment agreement is a binding legal contract between your employer and you. The employer declares that they require the services of a clinician in a particular practice, and you will serve as that clinician. The employment agreement then outlines the terms of that binding legal contract. If either side does not fulfill the terms of the agreement, then each is in breach of the contract.
It is very important that you look through that employment agreement very carefully. Typically, the agreement will outline your duties as a clinician and if there is some administrative role, they will also outline the duties of that administrative role. Of course, your salary will be in the agreement as an amendment to the contract. Once again, it is very important that you look through the agreement in great detail.
This is because, if it is not written down in the agreement, it does not exist. Many employers will promise many things verbally, such as bonuses, partnership, and other things. If it is not memorialized in the contract, in black-and-white, then there is no guarantee that their verbal promise will be fulfilled.
If your employer says, "We will talk about that later," when asked about something, such as buying in as a partner, this is a big red flag. If they have nothing to hide, then they should put it in the contract in writing. While disconcerting, this is a fact of life, and you must be aware of this fact.
Also, you need to pay particular attention to the terms of termination. Typically, either the employer or the employee can terminate the contract without cause, and there is a notice period for termination. You can't just quit your job and leave the following day. You have to give your employer time to find your replacement. The same is true the other way: they can't just fire you and kick you off the premises that day. They have to give you time to find a new job as well.
Usual notice periods are between 90 and 120 days. So, if for whatever reason, you need to leave the practice, you have to continue working there for another 3 to 4 months.
What is very important to look through are the provisions for termination with cause, meaning there is a reason that your employer is firing you. What are your due process rights? What if you do not agree with your employers contentions and accusations? Do you get to dispute them? Can you get a fair hearing? You need to know these very well.
Furthermore, and we will talk about this in greater detail later, many contracts will have noncompete clauses. These can be significant, and so you need to protect yourself against unlawful or unjust termination.
While one hopes this situation does not ever come up in the course of your employment, hope is not a strategy. You need to try to protect yourself as best as possible, and like I said before, if it is not written in the agreement, it does not exist.
And, even though it may cost upwards of several thousand dollars, it is very important that you have an experienced healthcare employment attorney review the employment agreement. The process of getting a job is quite emotional, and our objectivity may be obscured by this emotion.
It is very important that a third-party, who is not emotionally invested in the decision, looks over the agreement to point out potential dangers and pitfalls that may have been inserted in the agreement and not noticed by you. It is well worth the investment.
You are almost there: you are about to get your first real job. It is a great time, and finally all that hard work is about to pay off (both literally and figuratively). Before you start celebrating and ordering your first sports car, you need to make sure that what you agreed to verbally is written down in the contract. It will save you a whole world of potential hurt later.
Getting a Job Part 4 - The Employment Agreement