PeopleMuster

Contract renewal letter template

Renewal letters extend a fixed-term engagement past its end date. Same person, same work, a new period and sometimes revised terms.

Heading
[COMPANY NAME]
Date: [DATE]
To: [NAME], [JOB TITLE]
Original agreement ref: [ORIGINAL CONTRACT REFERENCE]
Subject: Renewal of your engagement

The renewal
Dear [FIRST NAME],
Your current agreement runs to [CURRENT END DATE]. We would like to continue.
Renewed period: [NEW START DATE] to [NEW END DATE]
Basis: [SAME TERMS / REVISED AS BELOW]
Renewal number: [FIRST / SECOND / SUBSEQUENT] renewal of the original agreement

What is different this time
Scope: [UNCHANGED, OR DESCRIBE WHAT IS ADDED OR REMOVED]
Rate or remuneration: [UNCHANGED, OR STATE THE REVISED FIGURE]
Hours or availability: [UNCHANGED, OR STATE THE NEW PATTERN]
Notice: [UNCHANGED, OR STATE THE NEW PERIOD]
Everything not listed here carries over from the original agreement.

Confirming
Please confirm in writing by [REPLY DEADLINE] so there is no gap between terms.
If we do not hear from you, the current agreement ends on [CURRENT END DATE] as written.
[SENDER NAME]
[SENDER TITLE]
Renewal accepted: ______________  Date: ____________

Before you send it

  • Send it at least a month before the current end date.
  • Reference the original agreement number so the two documents stay linked.
  • List only what changed, and say the rest carries over.
  • Set a reply deadline that falls before the current term expires.
  • Say what happens if there is no reply. Silence should not extend anything by accident.
  • Count the renewals. Repeated extensions of the same short term often deserve a different conversation.

Questions people ask about this letter

How early should a renewal letter go out?

A month before the current end date is a reasonable floor, and longer for a senior engagement. The person needs time to decide, and a renewal that arrives in the final week reads as an afterthought.

Does a renewal need a whole new contract?

Not where the original agreement is sound and little has changed. A short renewal letter referencing the original works well. Where scope or terms have moved substantially, write a fresh agreement instead of stacking amendments.

What happens if the end date passes with no letter?

Someone is working without a current agreement, which is bad for both sides and can change the engagement's status in some places. Diarise every fixed-term end date on the day the contract is signed.

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