Last Chance Agreement Template

Last Chance Agreement Template

What Is a Last Chance Agreement?

A Last Chance Agreement is a legal contract that is signed between an employer and an employee (or a union that presents an employee) after an employee has made a serious violation of company policies or misconduct that usually leads to employment termination. The purpose of the document is to give an employee a final opportunity to keep their job.

Using this type of agreement helps state the circumstances under which an employee can save their job. If an employee will not meet the expectations stated in the document, their employment will be terminated.

A printable Last Chance Agreement template can be downloaded below or you can make your own using our online form builder.

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How to Make a Last Chance Agreement?

Making this kind of agreement is a straightforward process, however, it has several essential parts that must be included. A common Last Chance Agreement will contain the following:

  1. Title. The document should always start with a title. It is convenient and helps immediately understand the nature of the document and what to expect from it.
  2. Introduction. In the first part of the agreement, the filer must state the name of the parties and their addresses.
  3. Relationship. Here parties should designate the nature of their relationship by entering information about their employment contract. The filer can also provide information about the worker's job title and department.
  4. Subject. The filer should designate the violation or misconduct that an employee did. They should describe it in detail, mentioning which company policies have been broken. If an employee was given any notices in regards to their misconduct it should be listed here as well.
  5. Terms and Conditions. This part of the document should contain a list of improvements that an employee is supposed to make or actions that they should avoid making and the time of how long the probation period will last. Failing to do so they will meet the consequences, which should also be listed here.
  6. Confirmation Clause. The agreement should include a statement, in which the worker is confirming that they understand everything written in the agreement and the inevitable circumstances of violating it (which, in most cases, is automatic removal).
  7. Signatures. After the parties involved have agreed on all clauses they are supposed to sign the agreement to state their will and intention to follow it.

The content of the document mostly depends on the nature of the violation that has occurred. However, the filer should consider all circumstances of the situation while making this document.

Generally, a Last Chance Agreement breach leads to immediate termination from work. That is why an employee should review it very carefully and make sure they realize what the company where they work wants from them. Their signature on the document is a sign of full consent with everything stated there.

How Long Does a Last Chance Agreement Last?

The duration of a Last Chance Agreement is determined by an employer, usually, it lasts for one or two years. However, serious circumstances can lead to an agreement that may last up to five years or more. Nevertheless, the time period should be adequate for the type of misconduct that was committed by the worker.

Before stating the time period of the agreement, the filer should check if there are any state regulations regarding this situation. It can be useful to make an arrangement with a local lawyer who has comprehensive knowledge of the subject, and find out if the Labour Department of the state where a company is located has any policies applicable to workplaces.


Related Forms and Templates:

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