Learn how to write anemployee contract extension letter and find a sample of the same.
Employee agreements span over a certain fixed period. Often, the exact date of the starting and completion of the contract are indicated clearly in the letter. However, sometimes the work is not done within the stipulated time, and the organization decides to extend the term. In other times, the company may feel the need to maintain the employee longer owing to their performance and contributions, within the previous contract. To ensure that the rights of every party are adhered to in the extended period, an employee contract extension letter is drafted.
How to write the employee contract extension letter
What are the key elements of the employee agreement extension? First, it must have a title or a subject, indicating the purpose of the letter. It should be addressed to the employee in question, with their names and addresses written explicitly. In the introductory paragraph, it should tell the recipient that the letter is based on the earlier employment contract. It is important to reference the previous contract as appropriate including starting and completion dates. Just as the employment agreement, the contract extension letter bears legal significance.
In the next paragraph, the letter should indicate that the two parties including the company and the employee have decided to extend the employment contract to a particular new date. Then, the letter should reinforce that the employment period of the employee will continue until that time unless both parties seek to extend the term further.
A copy of the earlier agreement should be attached. It helps the employee to evaluate the terms and to confirm the details presented in the employee contract extension letter. The employee should sign the letter to indicate acceptance.
Employee contract extension letter sample
164 Lake Avenue
Employment Contract Extension
We refer to your employment agreement letter “Employment Contract,” dated August 16 2010, in which you became an employee of MBA Inc. until 30 November 2017, and subject to extension agreed upon by you and the company.
As section 1 of the employment contract provides, you and MBA hereby agree to prolong the employment period (within the terms of the previous employment agreement) through 30 November 2020. Consequently, the terms of the employment agreement will continue until 30 November 2020, unless you and MBA will mutually decide to extend the contract.
Please find a copy of the employment contract attached to this letter for your convenience. Do confirm your acceptance to the extension by signing below.
Chairperson/Chief Executive Officer