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.
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