Generally, backdating an agreement is legitimate if it accurately memorializes an unwritten agreement between the parties. However, when the parties are unsure of when the unwritten agreement was actually reached, the practice should be avoided as it could result in unintended risks.

Can a contract apply retroactively?

Generally, this contract is signed prior to the employee's first day of work. However, some occasions require a retroactive contract. An example is when an employee starts off as a volunteer and is promoted to paid status. The retroactive employment contract is like any other.

Does a contract need to be dated?

A contract should not be dated until all parties who need to execute the contract have done so. If a party has dated a contract prematurely then the date should be amended to a date no earlier than the date on which the last signatory actually signed.