How to Write Last Chance Agreement Letter and Its Sample

When your employees have any discipline issues, you can reprimand them verbally as the first warning. However, if they keep making some unnecessary mistakes, you can send them last chance agreement letter. The actual meaning of sending this letter is to give your employee the last chance to improve their work performance before they are getting terminated. This is a good way for the employer to overcome the discipline issues done by the employees and make them getting back on the right track. In addition, this letter needs to be signed by both you and your employee, so it is more like a formal pledge. Here are some strategies you can apply to write the letter.

What is the importance of writing this letter?

If you are the employer, it is important for you to write this letter when you find your employees break the rules or show lower work performance. This letter is important as it contains three purposes: 1) to specify the employees’ mistakes, 2) to explain your expectations for continued employment, and 3) to announce the termination if the employees fail to reach your expectations. In addition, if the employees deny to sign the last chance agreement letter, they should be terminated immediately.

How long does a final chance agreement letter valid?

In writing this agreement letter, you also need to include an expiration date. This letter usually valid until a year or around 18 months. It also depends on the company’s policies. After the expiration date, this agreement has to be deleted from the employees’ personnel file.

How should I write the agreement letter?

As it is a business matter, you should write the last chance agreement letter formally. Thus, you need to follow an appropriate format letter and use formal language. Ensure you include the specific problems related to your employees work or their attitudes, so they will realize it. There are several issues you can address, such as personal problems which affect their work like alcohol or drugs, impolite behaviors, or low work performances. After that, you need to explain your expectations to your employees. Tell them what they can do to get back in the right path. It is also important for you to mention some probationary terms as form of an assertiveness. They can choose to sign the agreement or get terminated immediately.

Last Chance Agreement Letter Sample

Writing a final agreement letter maybe difficult for you as this is a serious warning. However, you can see the sample we provide to you below.


Agreement with Dino Saurs. To avoid termination, the terms of this agreement must be fulfilled.

The employee is being deliberated for dismissal due to the following reasons: drunk in the workplace which affects the work performance and tardiness to work. Several verbal warnings from HRD has not solved the problem which has been three months since December 13, 2020.

The employee agrees to change all of these behaviors.

The employee realizes that not fulfilling the previous point will end up with immediate termination

The employee will see a two weeks suspension, without salary, followed by a three months probationary time. During the probation time, the employee will text the manager about time he arrives at office and meeting with managers before and after lunch time.

The employee realizesthat during the probation time his behavior will be monitored more often by a manager. The manager will be responsible tooversee his work performances.

If there are no more mistakes found, the employee will return to normal work after the probation time over.

The employee realizes that by signing this final agreement means that he agrees to follow the conditions. If he fails to fulfill the terms in this agreement, he will be expelled from the job immediately without any benefits.



Bronto Saurs (Head of Human Research Department)


Dino Saurs (Junior Staff of Marketing Department)


March 23, 2020


That is all the brief explanation about composing a last chance resignation letter. This explanation may help you someday.



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