ContractPatch, Step 2: Understanding the power balance

September 26, 2016 Uncategorized No Comments

Employment agreements are one of the things that I’m asked the most regularly about in the free and open source software world, almost rivaling questions about licenses. My responses have always been the usual lawyerly responses of This Is Not Legal Advice and while I Am A Lawyer, I Am Not Your Lawyer (I’m generally not acting as a lawyer on behalf of Conservancy as its Executive Director either). But even from my early days of being involved with free software, I have seen that there’s a lack of understanding about employment agreements and the ability of employees to get their agreements modified. Last month, Fred announced a new initiative that we are working on together, called ContractPatch. With ContractPatch, our goal is to help provide knowledge to employees, along with sample language for better contract terms. The first step in this process is understanding the dynamics at work in employment arrangements. Step 1 is knowing that everything is negotiable and step 2 is knowing where you stand in the negotiation. Quite simply, you likely will never have as much power as you do the moment just before you sign your employment agreement.

At the point you are presented with a job offer, your prospective employer really wants to hire you. Chances are, they’ve screened and interviewed a number of candidates and put a lot of work into the process. Your manager has thought deeply about who they want in the position and has probably imagined how it will all work out with you in the role. Both you and the hiring decision-maker(s) are probably very optimistic about what you’ll accomplish in the role and how well you’ll get along working together. At this point, no one wants to go back to the drawing board and start the process over again. You will be excited to start the new job but it’s worth taking a step back to appreciate the unusual position you are in with your new employer.

As part of the hiring process, you’ll be expected to negotiate your salary (this can be complicated) and finalize all of the terms of your employment. Terms of employment can also be looked at through the lens of compensation, and asking for more favorable terms in your employment contract can be another kind of perk an employer can give you if they have a tight budget. A classic contract negotiation tactic (I even learned this in law school) is to make an agreement stronger in the first draft than you really need it to be, just so that you can give something away when pushed. This is certainly true of many company’s standard agreement templates. The only way to find out is to ask.

Once you take the job, it’s harder to change your terms of employment (though it’s possible, as we’ll cover later). Think hard about the long term impact of signing the agreement and whether things could happen down the road that would make you feel less comfortable with working under those terms. We’ll be giving you some examples of situations you want to be prepared for when we talk about specific contract provisions.

Asking for more favorable terms doesn’t have to be an adversarial process. You can ask for an agreement to be amended in a friendly way. Employers often respect workers more when they advocate for themselves.

So, we’ll help you think about how to engage with your employer while anticipating things that could go wrong down the road and how to ask for more favorable terms. You can sign up for our mailing list to be part of the conversation. While it may be easier to avoid negotiating your agreement, don’t trade short term comfort for your long term benefit.