"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 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 form should contain the following:

  • The 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;
  • Introduction. In the first part of the agreement, a filer must state the name of the parties and their addresses;
  • Relationship. Here parties should designate the nature of their relationship by entering information about their employment contract. A filer can also provide information about a worker's job title and department;
  • The Subject. A 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;
  • 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;
  • Confirmation Clause. The agreement should include a statement, in which a worker is confirming that they understand everything written in the agreement and the inevitable circumstances of violating it (which in most of the cases is automatic removal);
  • 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, a 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 a worker.

Before stating the time period of the agreement a 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.

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Download "Last Chance Agreement Template"

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Last Chance Agreement
This ​ L ast Chance Agreement (hereinafter referred to as the “Agreement”) is entered
into as of __________________ by and between __________________________, with a
mailing address of ________________________________________________________
(hereinafter referred to as the “Employer”) and __________________________, with a
mailing address of ________________________________________________________
(hereinafter referred to as the “Employee”), collectively referred to as the “Parties,” both
of whom agree to be bound by this Agreement.
1. Memorandum of Understanding (Employee). The Employee understands that they
have violated ____________________________________________________________
As a result of the violation, the Employee has been formally informed by the Company
that their employment as of __________________ is conditional regarding their
compliance with the conditions stated below.
2. Agreement. ​ T he Employee agrees to the following:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Failure to follow these conditions will be ample and just cause for the Employee’s
immediate termination from the Company.
For example (Employee accused of substance abuse):
1. An evaluation by a Substance Abuse Professional (SAP), that has been approved
by the Company;
2. Enrollment in a rehabilitation program that has been approved by the Company
and the SAP for professional treatment regarding the Employee’s substance abuse
problem;
3. Follow the treatment prescribed by a treatment counselor to its conclusion;
©​ ​ ​ ​
T EMPLATEROLLER.COM​
Last Chance Agreement
This ​ L ast Chance Agreement (hereinafter referred to as the “Agreement”) is entered
into as of __________________ by and between __________________________, with a
mailing address of ________________________________________________________
(hereinafter referred to as the “Employer”) and __________________________, with a
mailing address of ________________________________________________________
(hereinafter referred to as the “Employee”), collectively referred to as the “Parties,” both
of whom agree to be bound by this Agreement.
1. Memorandum of Understanding (Employee). The Employee understands that they
have violated ____________________________________________________________
As a result of the violation, the Employee has been formally informed by the Company
that their employment as of __________________ is conditional regarding their
compliance with the conditions stated below.
2. Agreement. ​ T he Employee agrees to the following:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Failure to follow these conditions will be ample and just cause for the Employee’s
immediate termination from the Company.
For example (Employee accused of substance abuse):
1. An evaluation by a Substance Abuse Professional (SAP), that has been approved
by the Company;
2. Enrollment in a rehabilitation program that has been approved by the Company
and the SAP for professional treatment regarding the Employee’s substance abuse
problem;
3. Follow the treatment prescribed by a treatment counselor to its conclusion;
©​ ​ ​ ​
T EMPLATEROLLER.COM​
4. Provide a return-to-work specimen for drug and/or alcohol that meets the
requirements of the Company’s Substance Abuse Policy;
5. Consent to follow-up substance abuse testing at the request of the Company for a
period of up to __________________;
6. Be held responsible for the actual cost of any substance abuse testing and
treatment required during this __________________ period.
7. Be subject to all other work rules including attendance, tardiness, and job
performance issues.
8. Agree to sign a release of information statement to allow the treatment provider to
report to the Company any lapse or missed treatment sessions.
4. Governing Law. ​ T he Parties agree that this Agreement shall be governed by the laws
of ______________________.
State
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
EMPLOYER
EMPLOYEE
WITNESS
____________________
____________________
____________________
Name
Name
Name
____________________
____________________
____________________
Signature
Signature
Signature
____________________
____________________
____________________
Date
Date
Date
©​ ​ ​ ​
T EMPLATEROLLER.COM​
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