Things to check before accepting new Job

CA Shree Jain (Chartered Accountant) (1572 Points)

12 June 2010  

Make A Check-List Of Basic Requirements:- This is more of an option for job seekers who are employed but are looking for better job opportunities or a different job role. In this check-list you should enlist important factors such as nature of job, minimum compensation level, working hours, etc. If you are contemplating shifting from a company, which offers health insurance and other perks, ensure you add a rupee value to each of these benefits. This will give you a ball park figure of the basic salary level. If the job requires you to relocate to another town or city, factor in the moving costs and other added expenses, such as accommodation, food and travel. These expenses will burn a hole in your pocket, especially if your earlier job was in your hometown. Ideally, the company should give you a one-time relocation allowance and the additional income should factor in these additional costs if you are moving to a city with a higher cost of living. Verify this check-list with the offer letter to confirm if the offer largely meets your expectations.

What’s My Monthly Take Home Salary? :-Once you get the offer letter, it’s time to do some calculations. Your monthly take home is not the annual gross income divided by 12 months after accounting for taxes. Salary structures are more complex and also involve a variable component that is not a 100% guaranteed pay out. Ideally, you should maintain the ratio at 80:20 if the variable component is a part of your gross annual salary package. Anything more than that could shrink your monthly take home salary as seen as a percentage of your gross annual income.

Do I Have To Sign a Bond? :
-Bonds are very common in IT companies and BPOs as they undertake huge costs in training employees. The time period of the bond could be 1-3 years that varies from company to company. If you encounter an opportunity, you could negotiate with your new employer to foot the cost of the bond either partly or fully.

Is Non-Compete Agreement A Fair Practice? :-
Non-compete agreements are fairly common for certain jobs such as research & development, high-end technology professionals, etc. The idea is that these professionals are subjected to highly sensitive information that is critical to the company. If such a professional joins the competitor, the company could always fear the leak of such critical information. Hence they insist on non-compete agreements for data protection. Such agreements are typically valid for a year or more depending upon the company after you quit employment.