I once had a situation with a company during my interview process for a job. Finding pertinent information about this situation was challenging, so I’ll share what I learned with you so that you can make an informed decision. The business required me to sign a letter of commitment pledging my availability in the event that they were given a specific contract.
The purpose of a letter of commitment is simple. The business must show they have the necessary personnel in place so they can complete the contract’s work. However, they are unable to hire said key personnel because the contract has not yet been awarded. That’s legal, and I was prepared to sign a letter like that if certain conditions were laid out. That’s where the questions came in. Would signing a document that just said I would be available put me in danger?
Basically, I believed it prudent to include three contingencies in the letter: 1) mutual agreement on favorable employment terms; 2) full understanding that I reserve the right to pursue other employment and accept employment with another employer until the contract is awarded; and 3) the understanding that this commitment will end if certain conditions are met. In the end, the business chose to work with someone else who had already signed the original letter and never attempted to negotiate a new draft. They responded that they simply found someone with better-suited qualifications and denied that my concerns had anything to do with why I had been passed over. I’ll take that response at face value and would be open to the idea of doing business with them in the future. But in the end, I think my worries were reasonable because I was just trying to protect my interests.
Differences between letter of commitment and letter of intent
Similar agreements exist between an employer and a prospective employee in letters of intent and letters of commitment, but letters of commitment are more formal and legally binding. Here are specific ways the two types of letters differ:
Objective
Letters of commitment and letters of intent have different purposes. While letters of commitment are formal agreements, letters of intent are typically used as negotiating tools. In the course of contract negotiations with a new hire or contract worker, businesses may draft letters of intent. They persuade that person to join their company using the letter. When negotiations are concluded, a letter of commitment is created. It binds the two parties together in a formal agreement.
Legal impact
The formality and level of commitment required to sign a letter of commitment versus a letter of intent are their main distinctions. A signed letter of commitment is a legally binding document. The other party has the right to take legal action against you if you violate the agreement. A signed letter of intent is not legally binding. It denotes that both parties have agreed to the terms and intend to continue their relationship, but there are no guarantees.
Structure
Letters of intent typically differ from letters of commitment in their format. A letter of intent is less formal than a contract, so it might only contain general descriptions of the terms of the agreement, such as payment, obligations, and how long the party has to decide. Letters of commitment provide much more information about each requirement and obligation, as well as what will happen if a party breaches them, for legal purposes. Letters of commitment also include the signatures of the parties, the date, and frequently a notarized signature to attest to the legitimacy of the agreement.
Timespan
The lengths of agreement between the two letter types are typically also different. Typically, a letter of intent is only good for a limited time, like 30 days. In the event that time period expires without a formal agreement, the parties will need to discuss new terms. A letter of commitment is valid for a predetermined number of years or until the project is finished. The letter should specify the duration of the agreement’s validity and the conditions under which it terminates.
What is a letter of commitment for employment?
An official contract that states an organization’s intention to hire a person is called a letter of commitment for employment. The letter specifies the circumstances under which the company must hire the applicant. Important clauses like payment, duration of employment, and conditions like passing a background check could also be included. Both the employer and the employee must agree to the terms of the letter in order for them to sign it. Each party to the employment contract must sign the letter of commitment.
A company might, for instance, write a letter of commitment promising to hire their preferred local photographer to handle all the photography if they land a significant marketing contract within the upcoming year. The photographer promises in the letter that they will be readily available to work for the agency when and if they are awarded the significant contract.
When negotiating a job offer, employers may also present letters of commitment. They draft a letter outlining the specifics of the job offer that were agreed upon, such as the pay, benefits, or bonuses. By acknowledging this letter, the employee accepts the job offer made by the company with the given conditions and pay.
Tips for writing a letter of commitment
Consider these suggestions when creating or reviewing a letter of commitment:
Letter of commitment example
A sample employment commitment letter can serve as a model for your own letter to an employer-in-waiting. An illustration of a letter of commitment for contract work is provided below:
Jan. 15, 2021
Perry Cane, President
Gertweist Media
898 Corebet Street
Louisville, KY 40206
Dear Mrs. Cane,
This letter serves as my guarantee to your advertising company that, in the event that your business is successful in securing a contract with West End Brewing Company for the latter’s marketing and advertising requirements, I will be available to start working as the account’s primary photographer right away.
Gertweist Media agrees to pay my hourly rate at my current rate of $100 and to pay my mileage and other travel-related costs. I’ll supply and keep up with my own cameras, photographic gear, and photo-editing software. I consent to being accessible after hours and on weekends as necessary. After one year from the contract’s start date, both parties may renew or renegotiate the terms of the agreement.
Sincerely,
Wade Kai, WTK Photography
How To Write Your Commitment Statement – Yayati Desai
FAQ
How do I write a commitment letter?
- Agree upon terms before writing. …
- Keep letters short and succinct. …
- Use correct formatting. …
- Be direct. …
- Write clearly. …
- Only include the terms that both parties have agreed on.
- Consider the terms for availability. …
- Be fair.
How do you write a commitment statement example?
- Be punctual. Punctuality shows professionalism and demonstrates your time management skills.
- Volunteer to help. …
- Express a desire to advance. …
- Show confidence. …
- Be a team player. …
- Request evaluations. …
- Listen to suggestions. …
- Show leadership skills.
What is employee commitment?
I commit to strive to embrace difficulty with optimism. I’m aware that hard work is the only way for me to succeed, so I’ll take charge of my education. Because I want to be successful in this program, I’ll use the above commitment to help me do that.
