Master how to write an employee contract letter and get a sample of its format.

Sample employee contract letter format

Before appointing an individual into office, it is important for both the employer and employee to enter into an agreement. It is formally referred to as employee contract letter. What should the letter constitute? Fortunately, several online sources provide a basic employee contract format. However, the format can vary depending on the terms of the company in question. Here is a procedure for drafting a good contract letter:

How to write a contract letter

An employee contract letter should include a number of elements. These components are common and important in this kind of agreement letter. It acts as the mediator between two parties. The letter is like a summary of the employee contract form but without the legalities in the form. Nonetheless, it does prevent conflicts in the future, and it commands a legal importance.

The letter commences with the address details of the company. These should include the registered name of the organization, physical address, contacts and email address. Date of the agreement should also be indicated at the top of the employee contact letter. Next, the name of the employee should be added together with their address.

The agreement should have a distinct subject line that states the purpose of the letter. The body of the letter should start with congratulatory remarks, to indicate that the employer appreciates having the new employee on board. In the second sentence, it should mention the position of the new employee and the company’s name. In addition, the letter should indicate the period within which the employee will be contracted. The letter should notify the employee of the terms of the agreement and request them to go through them before deciding whether to take the position or not.

Sample employee contract letter

Company Name

Address: City, State Zip Code

Contact No.

Email Address

12 Nov 2016

Harry Porter

15 Downing Street

City, State, Zip Code

Re: Employment Agreement

We are glad that you are a team member of our organization. We congratulate you on your appointment to the position of Assistant Sales Manager with Maryland Communications. Your contract begins January 13 2017. Before you consider the position, we would like you to go through the terms of employment outlined below and respond with a confirmation letter.

Nature of work

You will work for 40 hours per week. Officially, you will report at 8.00am and leave at 5.00pm. As an assistant sales manager, you will be required to assist the manager in all issues related to sales. Your responsibilities also include participating actively in the recruitment of employees in the sales department.

Compensation and benefits

Every month you will get a salary of $8000. If you exceed the 40 hours stipulated in the agreement, you will be paid $40 for every extra hour worked. Paid leave will only be allowed after you have been employed for over 6 months.

Rules and regulations

Upon the commencement of the employment contract, the company will require that you comply with the rules and regulations. You should not share confidential information with outsiders unless with authorization.

Company’s rights

The company has the right to terminate your employment or transfer you based on performance, punctuality, interactions with colleagues, and sincerity. The company can change your employment when necessary.


Signature of the company’s representative

This is to confirm that I have read the terms above and understood them. I voluntarily accept it together with the conditions outlined therein.


Harry Porter

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