letter of agreement

For employers hiring new employees and such, letters of agreement are very common things. A letter of agreement is written from the employee or someone else who has been hired by the company to do a job for them, to the employee. It is basically a letter telling the employee that the person who was hired agrees to be hired for whatever wage for whatever job.

A letter of agreement basically lays out two main things:

1. Terms and conditions for the employer- In this section of the letter, the person who has been hired to do the job lays out the terms and conditions of the employer as the employed understands them. They will say what they believe the employer has agreed to do and the responsibilities the employer has towards the employed.

It is important to note that the things they write are according as the employed understands them. They tell thee employer what they believe the deal is that they have made with the employer and what they believe the employer will be doing as a part of their transaction with on another.

2. Terms and conditions for the employed- In this section the person who has been hired will write down the responsibilities they have, according to their understanding. They will write down exactly what it is that they believe the employer has hired them to do. They will write exactly what it is that they intend to do for the employer.

Again, it is important to note that this section is also according to the understanding of the employed. They are writing what they believe the employer expects of them. They are writing down what they believe the deal is that they have made with the employer.

The reasons for doing this are very good. It provides protection for both the employer and the employed. It may seem weird to say that it provides protection, but it actually does. It protects the employer from getting in trouble for misunderstood responsibilities on his or her part and it protects the employed from getting in trouble from misunderstandings on their part.

It means that they lay out the terms and conditions before them so that if one or the other does not fulfill the duties they are believed to have, they can go back to the letter of agreement and see whether or not those duties were actually agreed upon. It is a way fro them to say, "This is our deal, here is how it is, here are the duties of each of us, this is what we are going to do." It makes it so there is no confusion for either of them and they can proceed safely.

It is also good because if the employed does not understand things the same way the employer understands them then the employer can go back and clarify with the employed before they undertake their transaction.

Maybe the employed thinks that they will be doing one thing for the employer and the employer thinks they will be doing another. The letter of agreement would allow the employer to see that and contact the employed to clarify. If the employed does not agree with the terms, as the employer understands them, then they can quit their transaction right there. They do not have to wait until later to find out that they misunderstood each other when it would cause big problems, they can end it before it begins.

A letter of agreement is a very good thing to write and should be done before undertaking to start a big business transaction. It will allow everyone involved to set clearly before them exactly what the transaction is for and exactly what the responsibilities of both parties are.

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