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Last Chance Agreement Letter

A last chance agreement letter is a letter drafted by an employer to an employee with discipline issues. This letter is exactly what it sounds like: the last chance an employee has to keep his or her job before being fired. It is a way for the employer to layout the problems with the employee’s behavior and provide a roadmap for getting back on the right track. This is a formal letter to be signed by both parties.

Format and Content

The last chance agreement letter format will follow that of any contract. It will be reviewed by the employee, citing the specific problems with his or her work. These issues can range from personal problems affecting their work like alcohol or constant tardiness to issues in the work place such as disrespectful behavior or not meeting deadlines. Either way, the behavior should be spelled out. Then, the letter should explain what the employee can do to get back in good standing. Any probationary terms should be included in this letter. The employee can choose to agree and sign or have his or her employment terminated.


This last chance agreement letter sample is from a restaurant owner to one of his long standing bartenders. The employee has been taking longer breaks and has gotten a number of complaints for rudeness to customers, but he is good at his job and been with the restaurant a long time, so the owner wants to give him one more chance. This letter lets the employee know why he being considered for dismissal and what he can do to earn back his good reputation.

May 19, 2013

Mark Owens (the employee),

This letter, effective on today’s date, is to detail circumstances for continuing employment with Local Diner. To avoid termination, the conditions of this agreement must be met.

The employee is being considered for dismissal due to the following behaviors: rudeness and complaints from customers as well as excessive tardiness to work and from breaks. Multiple warnings from managers have not solved the problem that has been ongoing the past three months with the first write-uphaving taken place on February 3, 2013.

The employee agrees to stop all of these behaviors.

The employee understands that not demonstrating a change in behavior will result in immediate termination.

The employee will observe a one week suspension, without pay, followed by a two month probationary period. The probation period will include the employee checking in with a text message when arriving to work and alerting managers before and after every break period. The employee understands that during the probation period there will be increased monitoring of his behavior and a manager will always be on duty to supervise his interactions with customers.

If no issues arise, the employee can return to normal work conditions after the two months. However, this agreement does not guarantee future employment for any amount of time.

The employee understands that by signing this agreement he is agreeing to its terms. He understands if he fails to meet the conditions in this agreement he will be terminated immediately and all benefits stopped.