Backdating an employment contract start date
In the absence of an effective date, the terms of the agreement become operational upon execution. Effective Date is the Same as the Execution Date Ken Adams of Koncision argues that in this circumstance, it is clearer to include the agreement date in the introductory clause and refer to this date as "the date of this agreement." For example: "This agreement is made and entered into on 19-May-2017 19:54 by [PARTIES]." Ken asserts: "Why inflict an unnecessary defined term on the reader? This is frequently used in employment agreements that tie the effective date to the day the employee start works.
There are certain situations, however, when backdating is acceptable; however, the parties involved must agree to it.For example, to collect royalties or payments retroactive to an past date.Again, Ken argues that it is clearer to use the concept of the 'date of the agreement' and specifically define the periods of any rights and obligations that differ from such date.Documenting a transaction which has not yet happened In other cases, it may not be possible to say that the relevant transaction has already taken place – but you may still want to achieve a ‘backdated’ effect.
In this situation, it may be possible to put in place an agreement now, with a historic ‘effective date’.
Practically, it can be more convenient to set the operational date for all rights and obligations, rather than set each individually.