PROMAT

Pre Existing Agreement in Offer Letter

The pre-existing agreement in an offer letter is a clause that is commonly included in employment contracts. This clause outlines any prior agreements or arrangements that may have been made between an employer and an employee prior to the signing of the current contract. The purpose of this clause is to protect the interests of both parties and ensure that there are no misunderstandings or breaches of trust.

What is a pre-existing agreement?

A pre-existing agreement is an agreement that has already been made between an employer and an employee before the current employment contract is signed. This could be an agreement about salary, work hours, vacation days, or any other terms of employment that may have been discussed during the hiring process.

Why is it important to have a pre-existing agreement clause in an offer letter?

Having a pre-existing agreement clause in an offer letter is important for several reasons. Firstly, it helps to establish clear expectations between the employer and employee. By outlining any prior agreements, both parties are aware of what has been agreed upon and can avoid any confusion or misunderstandings down the line.

Secondly, it protects both parties from potential legal disputes. If an employee believes that the terms of the contract have been breached, they may try to take legal action against their employer. However, if there is a pre-existing agreement clause in the offer letter, it can serve as evidence of what was previously agreed upon and can help to resolve any disputes.

Finally, having a pre-existing agreement clause in an offer letter can create a better working relationship between the employer and employee. By being transparent and upfront about any agreements that have been made, it can help to build trust and respect between the two parties.

What should be included in a pre-existing agreement clause?

A pre-existing agreement clause should include the specific details of any prior agreements that have been made between the employer and employee. This could include information about salary, bonuses, benefits, work hours, vacation time, or any other terms of employment that were discussed during the hiring process.

It is also important to include any conditions or limitations on the pre-existing agreement. For example, if the agreement was based on the employee meeting certain performance targets, this should be clearly stated in the offer letter.

Conclusion

In conclusion, the pre-existing agreement clause in an offer letter is an important element of any employment contract. It helps to establish clear expectations between the employer and employee, protects both parties from potential legal issues, and can create a better working relationship overall. When drafting an offer letter, it is important to include a pre-existing agreement clause that outlines any prior agreements and includes any conditions or limitations on those agreements.