Letter of Agreement between Employee and Employer

Before appointing a person for a job, it is in equal interest of both the employee and employer to sign an agreement letter. This letter makes the duties, role and responsibilities of the employee clear. It also shows the salary, other benefits and number of paid leaves the person in entitled for. It helps in preventing disputes in the future, and carries legal importance.

Sample Letter

Company Name
City, State, Zip Code
Contact Number
Email Address


Peter Murray
12 Downing Street
City, State, Zip Code

Re: Employment Agreement

We are happy to have you as a team member of our growing organization. We congratulate you on your appointment as an Assistant Manager Accounts with (Company's Name). Your tenure with us will start from March 01, 2014. Before you take the position, we would like you to go through your employment terms and condition mentioned below, and return a signed copy to us for confirmation.

Nature of Work: Your duty hours will be 40 hours a week. The official timing is from morning 9 to evening 5. As an Assistant Manager Accounts, your responsibilities will include assisting the manager in every accounting activity. You will be checking all the invoices and daily expenses incurred by the company and maintaining the same. You will also be asked to visit clients and collect payments, in case there is any delay. The management also requires you to take active participation in the hiring process of accounts personnel, preparing and scheduling training programs, analyzing performances of juniors and drafting weekly reports on your activities.

Salary & Benefits: You will be drawing a salary of $8000 per month. If the number of hours you have worked exceed beyond 40 hours, you will be paid $40 per hour in multiplication of the number of hours you worked. There will be no paid leave for the first six month starting from your joining date. From the seven months of your employment, you will receive 1 (one) paid leave for each month until the end of this current financial year, which is March 31, 2015. If you remain absent for more than one day in a month, your salary will be deducted based on your basic. The company will offer you a medical coverage from the date of your employment.

Rules & Regulations: The company expects you to stick to all the rules and regulations effective at the time of your employment. You will, in no way and under any circumstance, share important and confidential information of the company with outsiders. You must not bring any copying devices such as pen-drive, external hard disk, or compact discs to the office. Neither are you allowed to take out the company's properties with you. In case there is any work-related material you must carry outside, you must make a voucher for the same and get it signed by the manager.

Non Competition: You agree that upon voluntary or involuntary termination of your employment, you will never indulge in any such business activities that would directly or indirectly act as a competition to our business.

Company's Right: The company holds the rights to transfer, or terminate your employment based on your performance, sincerity, punctuality and your interaction with your co-workers. The company can also change your employment as it sees fit.


Signature of Authorized Person with Company's seal

This is to confirm that I have read and understood the employment agreement. I accept it voluntarily all the conditions mentioned above.


Peter Murray

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