A Letter of Understanding is created to give both a company and a candidate for a particular job position a written contract agreement. The letter states that the documented work and position of the potential employee, expected compensation and benefits the company agrees to give during the individual’s employment period with the company, and severance pay the employee will receive after the termination from the work position was reviewed and accepted by both parties. The letter concludes with the signature of the appropriate company personal who oversee the hiring process, and an area is provided for the candidate to sign and date the document. After the candidate returns the letter to the company, showing that both parties have signed the letter, the candidate is eligible to begin working in the stated position.
An example is listed below:
John Doe
California
December 4, 2008
Potential Expatriate Employee
Corporate Office Human Resource Manager
XYZ Company
Dear Potential Expatriate Employee:
It is our pleasure to confirm our offer of employment to you as a Department Administrative Assistant at XYZ Company located in Seoul, South Korea. In this position, you will report directly to Mr. Seth Lee during the first day of your pre-move trip, beginning Tuesday morning, Feburary 3, 2009
Your salary will be $3,200 per month. Paychecks are issued biweekly. As your first official day in the office will be Monday, March 2, 2009 your first paycheck will be issued to you on Friday, March 13, 2009.
We will provide relocation assistance in the amount of $2,500. If you leave the Seoul Agilent office before seven months of continuous employment, you are required to return the total amount of relocation assistance.
You will be eligible for medical and dental benefits beginning on your first day of employment. Vacation accrues at a rate of 6.33 hours per month. You will be eligible to take accrued vacation after three months of continuous employment.
To confirm your acceptance of this offer of employment, please sign below and return to me by fax at (555) 555-0150.
John Doe Wednesday, December 3, 2008
Signature Date
John Doe
Corporate Office Human Resource Manager
Signature of Potential Expatriate Employee Date
Enclosure
