Guide and Example of the Last Chance Agreement Letter

Guide and Example of the Last Chance Agreement Letter

Last chance agreement letter refers to the written agreement that typically made between employer and labor union. It provides an employee with last opportunity to retain the job after committing a severe company policy violation. The terms and conditions within the document will vary a lot depending on several circumstances, such as the employer’s decision and infraction.

187 Last Chance Agreement Letter

What Is Last Chance Agreement?

As explained above, last chance agreement is conducted between employer, union labor, and the employee who has committed severe wrongdoing but given a last chance to keep their job. The letter usually describes about the misconducts, sets job performance expectation for the employee, and defines the consequences if the employee fails to meet the set expectations.

How Long Does A Last Chance Agreement Last?

At some points, the employee is eventually released from the terms of agreement and receives same treatments as other employees, assuming that they fulfill the agreement’s terms, adhere to the company policies, and return to perform their job. In general, last chance agreements lasts for six month to a whole year, depends on the situations.

Does An Employee Have To Sign A Last Chance Agreement?

Last chance agreement contains signed contract by employee that list about performance issues that they must mend or fix, and receives an opportunity to stay employed. If the employee turns down the agreement and refuses to sign, then he is fired right away.

How Do You Write A Letter To End A Contract?

If the last chance agreement does not work out between the employer and employee, then it might be the time to write end of contract letter. The letter must be written in formal format and straightforward wording, while still being empathic without indulging in sentimentality.

Contract Letter of Last Chance Agreement Sample

Below is a last chance agreement letter sample that serves as contract with legal bind:

Dear Mr. Williams,

The purpose of this letter is to provide last chance agreement to enable continued employment with Spice and Grill Steakhouse. In order to maintain the employment, you have to comply and sign with the terms of this agreement. The establishment values each of the employees, but also expects everyone to adhere to uniform code that ensure best possible work environment.

We have received several formal complaints that you’ve conducted misbehavior and verify it thoroughly. We believe you still remember that this matter has been discusses directly and privately to you on two different occasions. Your rude behaviors to the customers have embarrassed and harm the image of the establishment.

We expect immediate change from you. By the date of this letter, you officially entered probationary period for six months, in which your actions and works will be monitored and used to decide whether you can continue to contribute to Spice and Grill Steakhouse. Please sign below if you understand and agree with the employment terms provided.

Best regards,

Michael Brown


Keep in mind that last chance agreement letter is a written legal contract. The employee should sign, put their name, and have a date record of it as well.



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