As and when the employment of a person in a company starts, he has to sign a legal agreement with the company. Through this agreement, the duration of the employment is specified and the date of expiry is also assigned to this contract after which, both parties are deemed independent.
What is a contract renewal letter?
When to come to know that the contract with the company is about to end but you cannot afford to leave your job at this point, you can write a request letter to your boss to ask him to renew the agreement that he signed with you.
What should be the tone of this request letter?
When you are asking your manager to renew the contract, it means that you are putting forward a formal request and the request letters have a unique tone that people follow to convince the reader into approving their request. The tone of the letter should be polite and kind and it should be able to persuade the reader into reading the complete reader and give consideration to the letter at least.
What information should be provided?
Just like any other letter written in a professional setting, this letter should also provide lots of information. The relevant information should be included and that which is not relevant should be omitted. Below are some details that are usually found in every letter of request for the extension of the agreement.
Details of the contract:
Whenever you write a request or any type of letter to discuss the contract of your employment, you must give a reference to that contract. For instance, if you want the contract to be renewed, let the manager know about the fact that the agreement is going to be expired. Let him know about the date on which it is going to expire. It is also important to mention the date on which it was signed. If one of the clauses of the contract says that it can be renewed, write that clause to support your request.
Highlight your key strength areas:
Whether you are an employer or a vendor, the extension of the agreement is generally based on your performance. Of course, people don’t want to continue working with people who don’t show seriousness towards their job and demonstrate good performance. At times, they wait for the contract to expire and once it expires, they never look back.
If you think that you have plenty of reasons to give to the manager while requesting the extension, you should specify all of them. Describe the milestones you have achieved while working in the company, awards and credentials you have managed to earn, admiration you have received from stakeholders, and everything that can support your request.
Discuss what you liked about your job:
Oftentimes, the manager wants to know the reason for asking for an extension. Most of the time, the reason is the satisfaction of the employee with his job. If this is the case, you should write positive things that you have pointed out in the company and your job. While you praise the job or the company, try to remain realistic and sound natural. You cannot think of going to great lengths just because you want the employment contract to be renewed.
Discuss the terms and conditions of the contract:
While asking for an extension, the employee has to refer to the terms and conditions of the letter that state that the contract can be prolonged. If there are some conditions under which the renewal will be carried out and you are confident that you have met those terms, you should also mention this in the letter. If you have any evidence to provide, go with it.
End the letter with a formal request:
There are lots of such details that people want to share at the end. So, when you are about to close the letter, make a formal request again to emphasize the request to prolong the contract and then also let him know that you are available if the manager wants to discuss anything with you regarding the modifications in the agreement before extending it.
Sample Letter
Dear Mr. [name]
I [name] [designation] from [company] am writing to inform you about the decision taken in our annual [name] meeting. Your yearly performance was analyzed, and we have decided to renew your contract as a [designation] manager.
The previous year brought many new trials for us as a growing business. Despite the challenges offered by an economy affected by COVID, we pushed back and claimed the market share we deserve. The credit for this goes to the entire team. For without a cohesive team and good teamwork no organization can rise. The credit for your team’s good performance goes to your leadership.
We would like to take this opportunity to praise your performance as a manager. The way you led your team through difficult deadlines, broke through choked-up supply lines, and generally kept up the morale of your team, are all highly appreciated. We especially liked your practice of selecting the team member who has shown the best performance in the month as ‘The Shining star’.
This does not encourage the employees to give their best but also makes them feel appreciated and noticed for the hard work they put in. We also like the way you manage the internal conflicts within your team tactfully and smartly.
Keep up the good work!
Yours sincerely,
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