Agreement Letter Between Employee And Employer
Dear [Employee],
We are pleased to extend an offer of employment to you for the position of [Position] at [Company Name]. This letter outlines the terms and conditions of your employment.
Start Date: Your employment with [Company Name] will commence on [Start Date].
Salary: Your annual salary will be [Salary]. This salary will be paid in [frequency] installments, and will be subject to applicable tax and other statutory deductions.
Benefits: You will be entitled to [Benefits]. Further details regarding these benefits will be provided to you upon your start date.
Working Hours: Your standard working hours will be [Working Hours] per week. This may be subject to change from time to time, depending on the requirements of the business.
Probationary Period: You will be required to complete a probationary period of [Probationary Period] months. During this period, either party may terminate the employment relationship by providing [Notice Period] notice.
Confidentiality: As an employee of [Company Name], you will be privy to confidential information about the company and its clients. You will be required to sign a confidentiality agreement upon commencement of employment.
Code of Conduct: You will be expected to abide by the company's code of conduct, which will be provided to you upon your start date.
We look forward to welcoming you to our team, and trust that you will find your employment with us both challenging and rewarding.
Please sign and return a copy of this letter to indicate your acceptance of these terms and conditions.
Sincerely,
[Employer]
Formal Agreement Letter Between Employee and Employer
Subject: Agreement of Employment Terms
Dear [Employee Name],
This letter serves as a formal agreement between [Employer/Company Name] and you, [Employee Name], regarding your employment with the company effective from [Start Date].
The terms and conditions of your employment are as follows:
1. Position: [Job Title]
2. Working Hours: [Hours per week]
3. Salary: [Amount and frequency]
4. Benefits: [List benefits such as health insurance, vacation days, etc.]
5. Reporting: You will report to [Supervisor/Manager’s Name].
6. Termination: Either party may terminate this agreement with [Notice Period] notice.
Both parties agree to abide by the rules, policies, and expectations outlined in this agreement. By signing below, both the employer and employee confirm their understanding and acceptance of the terms.
Sincerely,
[Employer Name]
[Employer Position]
Acknowledged and Agreed:
[Employee Name]
[Employee Signature]
Provisional Agreement Letter Between Employee and Employer
Subject: Provisional Employment Agreement
Dear [Employee Name],
We are pleased to offer you provisional employment with [Company Name], starting on [Start Date]. This agreement will remain valid for a probationary period of [Number of Months], during which your performance will be assessed.
Terms of this provisional employment include:
- Job Title: [Job Title]
- Monthly Salary: [Amount]
- Working Hours: [Hours per week]
- Probationary Period: [Length]
- Conditions: Permanent employment will be confirmed upon satisfactory performance review.
This provisional agreement is intended to give both parties the opportunity to evaluate suitability before a permanent arrangement is made.
Sincerely,
[Employer Name]
[Employer Position]
Acknowledgment:
[Employee Name]
[Signature]
Agreement Letter for Remote Work Arrangement
Subject: Agreement for Remote Work
Dear [Employee Name],
This letter confirms the agreement between [Company Name] and you, [Employee Name], regarding your remote working arrangement effective [Start Date].
Key terms are as follows:
- Work Location: Remote (Home/Other Approved Location)
- Work Hours: [Number of hours and flexibility terms]
- Reporting Method: Weekly reports via email to [Supervisor Name]
- Equipment: The company will provide [Laptop, Software, VPN Access].
- Confidentiality: Employee agrees to maintain confidentiality while working remotely.
- Review: Arrangement subject to review every [Number] months.
This agreement ensures that productivity, accountability, and company policies are maintained while offering flexibility in work location.
Sincerely,
[Employer Name]
Confirmed by:
[Employee Name]
[Signature]
Agreement Letter for Salary Revision
Subject: Agreement on Revised Salary Terms
Dear [Employee Name],
Following our recent discussion, this letter serves as an agreement on your revised salary terms with effect from [Date].
The updated salary details are as follows:
- Current Position: [Job Title]
- Previous Salary: [Amount]
- Revised Salary: [New Amount]
- Effective Date: [Date]
- Additional Benefits: [If any]
Both parties agree to abide by the updated salary structure, and this agreement will become part of your employment record.
Sincerely,
[Employer Name]
[Employer Position]
Acknowledgment of Acceptance:
[Employee Name]
[Signature]
Casual Agreement Email for Project-Based Work
Subject: Agreement on Project Assignment
Hi [Employee Name],
As we discussed, this email serves as a mutual agreement between you and [Company Name] regarding your assignment to the [Project Name] project.
Details of the agreement:
- Duration: [Start Date] to [End Date]
- Compensation: [Amount]
- Deliverables: [List Key Deliverables]
- Reporting: Submit progress to [Supervisor] every [Timeline]
This agreement is specific to this project and does not alter your existing employment terms. Please reply to confirm your acceptance.
Best,
[Employer Name]
Agreement Letter for Work from Home Flexibility
Subject: Flexible Work from Home Agreement
Dear [Employee Name],
This letter confirms our agreement regarding flexible work-from-home arrangements effective [Start Date].
Terms agreed upon:
- You will work remotely [Number of Days] per week.
- Office attendance will be required on [Specific Days].
- Performance will be monitored based on deliverables rather than office presence.
- Confidentiality and professional conduct are expected at all times.
We trust this arrangement will allow for both increased productivity and improved work-life balance.
Sincerely,
[Employer Name]
[Position]
Acknowledged by:
[Employee Name]
[Signature]
Agreement Letter for Termination Settlement
Subject: Agreement on Termination Settlement
Dear [Employee Name],
This letter outlines the mutual agreement between [Company Name] and you, [Employee Name], regarding the settlement of your employment termination effective [Date].
The settlement terms are:
- Final Salary Payment: [Amount]
- Accrued Benefits: [Details of Leave Encashment, Bonus, etc.]
- Severance: [Amount if applicable]
- Return of Company Property: To be completed by [Date]
- Confidentiality: Employee agrees to maintain confidentiality of company matters.
Both parties agree that this settlement represents a full and final resolution of all employment obligations.
Sincerely,
[Employer Name]
[Employer Position]
Acknowledged and Accepted:
[Employee Name]
[Signature]
Preliminary Agreement Letter for Internship
Subject: Agreement for Internship
Dear [Intern’s Name],
We are delighted to offer you an internship at [Company Name], commencing on [Start Date] and ending on [End Date]. This preliminary agreement outlines the key terms.
- Position: Intern – [Department]
- Duration: [Number of Months]
- Stipend: [Amount, if applicable]
- Work Hours: [Hours per week]
- Supervision: You will report to [Supervisor Name].
This internship provides an opportunity to gain practical experience and does not guarantee future employment unless specifically offered.
We look forward to working with you during this internship.
Sincerely,
[Employer Name]
[Employer Position]
Acknowledged by:
[Intern Name]
[Signature]
What is an Agreement Letter Between Employee and Employer and Why is it Needed?
An agreement letter between employee and employer is a formal document that outlines the mutual understanding of employment terms.
It ensures clarity, prevents disputes, and serves as legal proof of agreed responsibilities, benefits, and conditions.
Without it, misunderstandings about pay, working hours, or job roles could arise.
Who Should Issue and Sign the Agreement Letter?
- Issued by the employer, typically HR or management.
- Signed by both employer (or authorized representative) and employee.
- In special cases like internships, it may also be signed by academic supervisors.
To Whom Should the Agreement Letter Be Addressed?
- Primarily addressed to the employee.
- For project-based agreements, addressed to a specific team member.
- For internship agreements, addressed to the intern.
- In case of settlements, addressed to the departing employee.
When Do You Need an Agreement Letter Between Employee and Employer?
- At the time of hiring.
- During probationary or provisional employment.
- When revising salary or benefits.
- For remote or flexible work arrangements.
- When assigning special projects.
- At the time of termination or settlement.
- For internship or training agreements.
How to Write an Effective Agreement Letter
- Begin with a clear subject line.
- State the purpose of the agreement.
- Outline terms clearly using bullet points or numbered clauses.
- Use professional and concise language.
- End with acknowledgment and signature section.
- Provide copies to both parties for records.
Requirements and Prerequisites Before Drafting the Letter
- Confirm terms of employment or project.
- Get management approval.
- Ensure compliance with labor laws.
- Prepare details like salary, position, and duration.
- Have a clear understanding of notice periods and benefits.
Formatting and Structure Guidelines
- Keep tone formal and professional.
- Use bullet points for clarity.
- Length should be 1–2 pages depending on complexity.
- Printed for official agreements; email acceptable for short-term or project-based agreements.
- Avoid vague or ambiguous wording.
- Always include acknowledgment and signature section.
After Sending: What Should Be Done Next?
- Ensure the employee acknowledges receipt.
- Collect signature of acceptance.
- File a copy in HR records.
- Provide a copy to the employee.
- Monitor compliance with the terms agreed.
Pros and Cons of Agreement Letters Between Employee and Employer
Pros:
- Clear expectations.
- Legal protection for both sides.
- Prevents disputes.
Cons:
- Can be time-consuming to draft.
- May feel overly formal in small companies.
- Requires regular updates when terms change.
Common Mistakes to Avoid in Agreement Letters
- Leaving terms vague or undefined.
- Forgetting to mention effective date.
- Not including termination clause.
- Overloading with unnecessary legal jargon.
- Not getting both parties’ signatures.
Elements That Must Be Included in the Agreement Letter
- Job title or position.
- Salary and benefits.
- Working hours.
- Duration or validity of agreement.
- Termination and notice terms.
- Responsibilities and reporting structure.
- Acknowledgment and signature.
Do Agreement Letters Require Attestation or Authorization?
- Normally, simple agreements do not require external attestation.
- In government-related or international jobs, attestation may be required.
- Authorization is always required from a company representative (HR, manager, director).
- For internships, additional endorsement may be required from academic institutions.
