What Is a Letter of Undertaking?

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A letter of undertaking is a written promise of intention that outlines the terms and conditions between two parties who are usually entering into a work-related agreement. The letter is written by the person who is contracted to perform the work.

For example, if an individual is hired by a company to perform contractual landscaping duties, his letter of intention states the terms of the verbal agreement. He starts out the letter by accepting the position on a particular date. Then, he states the per-hour or per-job fees and how many hours per day he allots to the project to complete the work. If the work must be completed daily, he also adds how many days per week he must work to comply with the terms of the agreement.

In the letter of intention, the worker also includes what equipment he must use for the job, what supplies must be available to him and if he is allowed any time off for vacation or sick leave. He must also state what the termination policy is for the project if he violates any terms or conditions of the agreement.

It is important to note that letters of intention are also used for employees or independent contractors to end their employment agreements with companies.