What is a Letter of Intent to Continue Working?
A Letter of Intent to Continue Working is a document used by employees to request contract renewal with the company.
As the name suggests, a Letter of Intent to Continue Working is an appeal to renew or extend an employment contract. It is used by employees with fixed-term or contractual jobs.
How to fill out a Letter of Intent to Continue Working?
Enter your name.
Enter your address.
City, State, ZIP
Enter your city, state, and ZIP code.
Enter the date of furnishing the Letter of Intent to Continue Working.
Enter your name.
Enter the expiration date of your contract.
My time working with
Enter the name of the company.
Enter the number of years you desire to work in the company.
Enter your signature.
What is a contractual employee?
A contractual employee refers to an individual with a fixed business relationship with an employer. It means that the employee signed a contract that indicates a specific length of time to work with the company.
Upon finishing the time agreement, a contractual employee may submit a Letter of Intent to Continue Working to renew his or her contract. However, decisions for a contract renewal may be indefinite as it depends on how an employee performed during his or her term in the company. It will help if a contractual employee has built a good reputation for best results.
Also, a contract is deemed terminated if a contractual employee did not receive a message after submitting a Letter of Intent to Continue Working.
What is contractual employment?
Contractual employment decentralizes on a bilateral coordination arrangement between an employer and employee. It is a technical agreement of two parties sealing reciprocal commitments with a contract. Contractual employment is a type of job that hires employees to work on a project at a limited time period.
Some companies use contractual employment as a strategy to absorb long-term employees or assets to the company. They hire contractual employees to test their potential before hiring them permanently.
What is a contract?
A contract is a tool of coordination in business that comprises two essential components — the agreement and consideration.
The agreement component pertains to the phrase "meeting of the minds," which means mutual understanding of terms between two parties.
The consideration component refers to the conditions indicated for mutual benefits. It includes the following provisions:
- Obligations and Conditions of the Contract. This provision contains the employee and the employer's obligations with each other. It involves the duties to do to fulfill the terms of the contract.
- Performance. This provision states the compliance of the employee and employer to the agreements and conditions in the contract.
- Payment Terms. This provision includes the information regarding the amount and schedule of the salary, wage, incentives, and other kinds of payment made to the employee.
- Liabilities. This provision states the liabilities of the employee and employer with one another. The liability clause protects the contractor from inherent disputes and prevents them from attorney fees and other losses in lawsuits.
- Breach of Contract. This provision states the consequences if the contract between an employer and employee is breached. Breaching of contract happens if one party fails to perform their duty either intentionally or not. The breach of contract clause also includes information as to how an employee may breach the contract. An employee must understand the provisions before signing the contract.
Some economists suggest that contracts must not be negotiable. If so, it will question the verification abilities of employers to implement agreements. Employees must be vigilant in signing a contract. They must know their rights and understand the language that elucidates the aspects of the legal agreement.
The notion of a contract centralizes on bounded rationality. Bounded rationality pertains to the uncertainty in decision-making. Thus, most employers prefer hiring contractual employees before regularization. It is a good strategy as they get to employ the most efficient and dedicated employees. Moreover, employees are reassured that their investment in labor costs is worthy.
What makes a contract legally binding?
A contract is legally binding if it comprises the main elements: agreement and consideration.
The agreement component represents the mutual understanding between an employee and an employer. Without it, a contract is misleading and would not be considered an agreement.
The consideration in a contract represents the rights and responsibilities of the employee and employer. If a contract does not contain a consideration, it is considered a gift agreement. A gift agreement is a unilateral promise usually used in donations and is not legally binding. An employer-employee relationship is binding with the notion of service in exchange for a salary or other benefits.
A contract may be formed through verbal and handshake agreements. However, a written agreement is preferred by many as it is proven more substantial. In lawsuits or other disputes regarding the agreement, the provisions written in the contract may protect either the employee or employer.
Essentially, a contract must be enforceable to ensure coordination between two parties. It is best to consult with a lawyer to avoid uncertainties with the contract. Before signing a contract, it is vital to understand its components as it exhibits the limitations and rights of the employee and employer.
What are the different types of contracts?
The following are the different types of contracts.
- Express and Implied Contracts. An Express contract comprises terms that are expressed openly, such as handshake agreements. An Implied contract refers to agreements requiring actions, facts, and circumstances to form a contract.
- Unilateral and Bilateral Contracts. A Unilateral contract is a type of contract that has a one-sided agreement. It means that in two parties, only one has to provide something or take action. A Bilateral contract enforces two parties to take action.
- Unconscionable Contracts. An Unconscionable contract is considered unjust for benefiting one party over the other. One example is limiting one party to seek satisfaction in court.
- Adhesion Contracts. An Adhesion contract is a contract made by one party to be agreed upon by the other party.
- Option Contracts. An Option contract allows a party to make a simultaneous signing of contracts with third parties.
- Fixed Price Contracts. A Fixed Price contract is used in selling properties stating the agreement for its fixed price.