When it comes to employee performance, sometimes it`s necessary to take drastic measures to protect your business. That`s where last chance agreements come into play.
A last chance agreement is a contract between an employer and an employee who has exhibited unsatisfactory performance or behavior. The agreement outlines the corrective measures that the employee must take to improve their performance and avoid termination.
But what should a last chance agreement actually look like? Here are some samples of clauses you might see in these types of agreements:
1. Performance improvement goals. This section should outline the specific areas where the employee needs to improve. For example, if the issue is attendance, the agreement might require the employee to arrive on time every day for the next three months.
2. Timeline for improvement. The agreement should specify how long the employee has to meet the performance improvement goals. Usually, this is a period of 30, 60, or 90 days.
3. Consequences for failure to improve. Clearly outline what will happen if the employee does not meet the performance improvement goals. Usually, this is termination of employment.
4. Monitoring and reporting. To ensure that the employee is actually making progress, the agreement should outline a system for monitoring their performance and reporting back to management.
5. Confidentiality clause. Last chance agreements often contain a confidentiality clause that prevents the employee from discussing the terms of the agreement with anyone outside of HR or legal.
6. No retaliation clause. The agreement should state that the employer will not retaliate against the employee for entering into the agreement or for reporting any violations of the agreement.
Last chance agreements can be a useful tool for employers who need to give employees one final opportunity to improve their performance. However, it`s important to consult with legal and HR professionals to ensure that the agreement is compliant with local laws and regulations.
