Why Reading Your Contract Carefully Is Critical
Working abroad can transform your career — but only if you begin your journey on the right terms. Thousands of workers every year accept job offers overseas without reading their contracts closely, only to face problems such as unpaid wages, false job descriptions, poor accommodation, or even visa cancellation.
A foreign employment contract is more than a simple job letter; it is a legal agreement between you, your employer, and in many cases, your host government. Once signed, it determines your rights, responsibilities, salary, and safety abroad.
Unfortunately, many job seekers rush through this step, trusting verbal promises from agents or employers. Later, they realize the written document didn’t match what was promised.
That’s why knowing exactly what to check before signing your contract is crucial — it protects you from fraud and ensures your job abroad remains a success story.
1. Verify That the Employer and Agent Are Legitimate
Before reading a single line of your contract, confirm whether the company and recruitment agency are recognized by the government.
Check Employer Credentials
- Ask for the company’s full name, address, registration number, and website.
- Verify if the company appears in official business directories or chambers of commerce in that country.
- Search online reviews or employee feedback.
Check Recruitment Agency Approval
If your job was arranged through an agency, confirm that it is government-approved.
In India, visit www.emigrate.gov.in → “Registered Recruiting Agents.” Search the agency name and license number.
Never sign a contract prepared by an unlicensed or unverified agent.
A legal employer or agency should never pressure you to sign immediately or pay without documentation.
2. Ensure the Contract Is Written and in a Language You Understand
Never rely on verbal agreements. The entire employment contract must be in writing and preferably in English or another language you can read.
If your employer gives a version in Arabic, German, or Japanese, ask for an English translation before signing.
You should receive:
- Two copies of the contract (one for you, one for your employer)
- A copy signed by both parties
- Company stamp and date of issue
Keep your original copy safely and carry a scanned version while traveling.
3. Confirm Job Title and Role Description
The contract should clearly define your designation, job responsibilities, and location.
Many disputes abroad arise when workers are promised one position but are assigned a different one after arrival.
Check that the job title in your offer letter matches the one on your work visa application.
For example, if your visa is for “Electrician,” you cannot legally be transferred to “Cleaner” or “Helper.”
If the role involves technical work, ensure qualifications or certifications required are properly mentioned. This helps prevent employers from misusing your role once you reach the destination.
4. Review Salary and Payment Terms
Your salary details must be transparent and specific.
Ensure the contract mentions:
- Monthly or hourly wage
- Currency of payment (USD, AED, CAD, etc.)
- Mode of payment (bank transfer or cash)
- Payment date every month
- Overtime policy and rate calculation
- Allowances (food, accommodation, transport)
Avoid vague terms like “as per company rules” or “competitive pay.” Everything should be numerically defined.
Also, check whether the salary includes or excludes accommodation and meal benefits. In the Gulf region, for instance, many companies provide both, while in Europe, these may not be included.
5. Check Working Hours, Rest Days, and Holidays
Different countries have different labour laws.
The contract should specify:
- Number of working hours per day and days per week
- Weekly rest day (e.g., Friday or Sunday)
- Overtime conditions
- Annual leave and national holidays
Most legitimate employers follow the International Labour Organization (ILO) standards of 8 hours per day, 48 hours per week. If the contract exceeds this without overtime pay, it’s a red flag.
6. Understand Duration of Employment and Renewal Terms
All overseas contracts have a start and end date — usually one to three years.
Ensure your contract mentions:
- Duration (e.g., 2 years renewable)
- Conditions for renewal
- Procedure for termination by either party
- Minimum notice period before resignation
If you’re on a probation period, confirm how long it lasts and what rights you have during it.
Beware of contracts that say “indefinite term” or have no expiry date — this may complicate visa renewals or your right to return home.
7. Accommodation, Food, and Transportation Clauses
Many overseas jobs, especially in the Gulf and Southeast Asia, include free or subsidized accommodation.
Check for clarity:
- Who provides housing — employer or you?
- Is it shared or private?
- Are meals included, and if not, what food allowance is provided?
- Will the employer arrange daily transport to the worksite?
Inspecting these details avoids future disputes about deductions or living conditions.
8. Medical Insurance and Health Benefits
Healthcare abroad can be expensive.
Ensure the contract includes medical insurance coverage for illness, injury, or accidents during employment.
For Indian workers traveling under the Pravasi Bharatiya Bima Yojana (PBBY), additional insurance is mandatory and covers:
- Natural or accidental death
- Permanent disability
- Repatriation of remains
- Legal expenses
Check if your employer’s insurance overlaps or supplements this coverage. Keep the policy copy for emergencies.
9. Leave Policy and Repatriation Rights
Your contract should specify:
- Annual leave entitlement (usually 30 days per year)
- Paid or unpaid leave terms
- Return ticket eligibility after contract completion
- Emergency leave procedures (family illness, bereavement)
Employers must bear return airfare if your contract ends naturally or is terminated unfairly. If you resign early, costs may be deducted proportionally.
If these terms are missing, ask the agency or employer to clarify in writing before signing.
10. Overtime, Bonuses, and Incentives
Overtime is a key area where workers often lose money due to unclear terms.
Ensure the contract defines:
- Overtime rate (e.g., 1.25x or 1.5x regular pay)
- Weekend or holiday work compensation
- Annual bonus or service benefits if applicable
If performance-based bonuses are offered, request written proof of the evaluation method.
11. Termination and Dispute Resolution Clause
The contract must specify the conditions for termination, including:
- Grounds for dismissal (absenteeism, misconduct, etc.)
- Notice period on both sides
- Final settlement process
Additionally, a dispute resolution or grievance clause should indicate how conflicts will be handled — through mediation, local labour court, or embassy intervention.
If your employer tries to cancel your contract suddenly without reason, this clause will protect you legally.
12. Visa and Work Permit Sponsorship
Ensure the contract clearly identifies the sponsoring employer — the company responsible for your visa and residency permit.
Avoid third-party sponsorships or “free visa” offers, as they often lead to illegal work status or deportation.
If your job is in a country following the Kafala system (like Saudi Arabia or Qatar), make sure your sponsor and employer are the same entity to prevent restrictions later.
13. Safety, Workplace Environment, and Compliance
For physically demanding jobs such as construction, mining, or factory work, the contract should mention:
- Compliance with occupational safety standards
- Provision of protective gear
- Access to first-aid and emergency support
Ask if the employer conducts safety training. In many countries, this is mandatory and must be free of cost.
14. Repatriation After Contract Completion
Upon completion, your employer must provide:
- Paid airfare back to your home country
- Clearance letter or experience certificate
- Full and final salary settlement
If you are dismissed early, the employer still bears repatriation cost unless termination is due to proven misconduct.
Always confirm that this clause exists in writing.
15. Deductions and Hidden Charges
Unclear deductions are a common trap. Before signing, ask for a breakdown of:
- Accommodation or food deductions (if any)
- Transportation or uniform costs
- Insurance or government levies
All deductions must be written, signed, and within local labour law limits. Employers cannot deduct more than legally allowed.
16. Retention of Passport and Freedom to Travel
Your employer or agent must never keep your passport permanently. It is your personal property.
Some employers ask to “hold” passports for safekeeping — decline politely.
If necessary, they can make a photocopy for visa renewal or registration, but the physical passport should remain with you.
The contract should also confirm your right to travel during holidays or emergency leave.
17. Signatures, Stamps, and Witness Verification
For a contract to be valid:
- Both you and the employer must sign every page.
- The employer’s company stamp or seal should appear.
- Date and place of signing must be indicated.
- If handled via an agency, the agency representative should countersign as a witness.
Unsigned or partially signed contracts have no legal validity abroad.
18. Pre-Departure Orientation and Worker Awareness
If you’re migrating from India, you are required to attend a Pre-Departure Orientation Program (PDOT) before traveling.
It educates workers about rights, cultural adaptation, and embassy support.
You’ll also receive an orientation certificate — keep it with your contract and passport for verification at airports.
19. How to Validate Your Contract Before Departure
After signing, upload or confirm your employment details on the eMigrate Portal. The system cross-verifies the employer and agency credentials.
You’ll receive a unique Emigration Clearance Number (ECN) once approved.
This number must appear on your travel documents before departure — it acts as proof that your job is officially registered and government-verified.
20. What to Do If You Notice Red Flags
If something looks wrong — mismatched salary, missing clauses, or incomplete employer details — don’t sign.
Contact your Protector of Emigrants (PoE) office or call the MEA helpline.
You can also file a complaint under the Grievance Redressal Mechanism on the eMigrate site. Officials can freeze licenses of fraudulent agencies or block foreign employers from hiring further.
Never ignore warning signs like:
- Urgent signing requests
- Blank sections in the contract
- Promises of “amendments later”
Once you sign, it becomes legally binding — caution is better than regret.
21. Future Relevance of a Well-Written Contract
A properly structured overseas employment contract doesn’t just protect you abroad; it strengthens your long-term career record.
When you return home or apply for PR in another country, experience certificates and verified contracts help establish your credibility.
Employers and embassies always trust workers with transparent, documented job histories.
Therefore, treat your employment contract as a personal asset — it represents your professionalism and integrity.
Final Thoughts
Signing an overseas employment contract is one of the most serious steps in your global career. Never sign out of excitement or urgency.
Take your time to read, understand, and clarify every clause — especially salary, accommodation, visa sponsorship, and termination rules.
If possible, ask your family or a legal advisor to review it. A few extra hours of care can protect years of hard work.
Remember — your signature is your commitment, and once it’s on paper, it speaks louder than promises.
Stay informed, stay cautious, and step into your international career with confidence.
