Automatic Renewal ("Evergreen") - Physician Contract Glossary

Automatic Renewal ("Evergreen")

Definition

A clause that extends the contract for another cycle unless canceled by a set deadline.

Examples in Context

"The agreement automatically renews for successive one-year terms unless either party gives 90 days’ notice."

"This Agreement shall automatically renew for additional 12-month periods unless terminated by either party with 60 days’ written notice."

"Employment will continue on an evergreen basis unless terminated in accordance with Section 5 of this Agreement."

Implications for Physicians

• May ensure continued employment without renegotiating terms.
• Requires careful monitoring of the termination notice period.
• Failure to provide timely notice may lock you into another full contract term.

Negotiation Tips

• Request a reasonable renewal term (e.g., six months instead of a full year).
• Ask for written reminders from your employer about upcoming renewal deadlines.
• Negotiate a reduced notice period to give you flexibility if circumstances change.

Red Flags and Pitfalls

• Failure to track renewal deadlines could force you to stay longer than desired.
• Automatic renewal terms may prevent renegotiating salary or benefits unless properly timed.
• Some contracts bury the renewal clause deep in the agreement — read carefully.

Related Terms

• Term of Contract
• Notice Period

FAQs

• What does "evergreen" mean in contracts?
  • An "evergreen" clause automatically extends your contract unless you or the employer actively terminates it.
• Can I cancel an automatically renewed contract?
  • Yes, but you must follow the contract’s stated notice period, often 30 to 90 days before renewal.
• Is automatic renewal common in physician contracts?
  • Yes, it’s a common way employers avoid frequent renegotiations. Be proactive about your contract deadlines.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.