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.
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:
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.
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: