Have you ever heard about the last chance agreement letter? If you haven’t, ensure to continue reading the paragraphs below to find out more about one of the important documents you may get in the working environment.
- Last chance agreement letter is a legal document that is used to deal with the employee’s termination procedures.
- Last chance agreement is a document used to notify a certain employee about their behavior that is against the rules of the company. By giving out this document, once they make the same mistake again in the future, they would not be given any chance to continue working or in other words they should resign from the job.
- The last chance agreement letter is issued and created by the employer which will be sent to the employee that has problems with discipline issues or job misconduct.

How long would the last chance agreement letter last?
The employer has the right to fire an employee if she/he has created such serious misconduct or has other related issues. However, if the employer doesn’t want to fire them right away, they may send a last chance agreement letter as a warning to notify about the employee’s misconduct/behavior. It usually lasts for a year. Then, if within the given time the employee has changed behavior, then the employee may continue working as usual without any termination.
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Who needs to sign for the last chance agreement letter?
The last chance agreement letter is created by the employer and it will be given to a certain employee. Therefore, there will be two parties responsible to sign the letter, the employer and the employee. Both need to read the letter carefully and if they agree with what the letter says, then they should both sign the letter and follow the employee termination procedures based on the rules written in the letter.
What should be included in the last chance agreement letter?
To create a proper last chance agreement letter, there are several important points to include in the letter. Take a look further by reading the following paragraphs.
- Title
The title should be written clearly at the beginning of the letter.
- Name and address
A formal letter is always occupied with name and address of both the sender and the receiver.
- Introduction
At the beginning of the body of the letter, inform the receiver about the objective of the letter and describe the relationship between the employer and the employee. Here, it may also talk about the employment contract.
- The misconduct issues
After finishing the first paragraph, you will continue to the second paragraph which will discuss about the main problem of the letter. In the second paragraph, clearly and politely state about the employee’s misconduct issues. To support the issues, mention the company violated rules and create a list if it is more than one case.
- The company’s terms and conditions
Explain clearly about the company’s terms and conditions related to the employee termination.
- Confirmation agreement
Provide a confirmation agreement that both agree with what the letter says.
- Signature of both parties.
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