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Physician Contract Glossary · Contract Structure

Automatic Renewal

An automatic renewal clause renews your contract on its own at the end of the term unless someone acts to stop it.

An automatic renewal, or evergreen, clause renews the agreement for another term unless a party gives notice by a deadline. It is convenient, and it is a trap if you are not watching the calendar. The renewal can lock in last year's compensation, and missing the non-renewal window can bind you for another full term you did not actively choose.

WHAT TO WATCH FOR

Find the non-renewal notice deadline and put it on your calendar the day you sign. An evergreen clause renews on the old terms, so it can also be your moment to renegotiate compensation if you act in time.

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