There are many employment terms that you should familiarize yourself with and today we are going to answer a simple question—what is reasonable assurance? The definition of reasonable assurance is simply a reliable guarantee of employment for a particular term, usually under predetermined employment conditions. Many employers, primarily in the educational setup such as schools, provide reasonable assurance letters to confirm to their employees that they will be able to return to work and continue their employment as before. Let’s under what reasonable assurance is and a sample letter of reasonable assurance for employees.
(Image credit – Pexels)
What Is Reasonable Assurance? Reasonable Assurance Definition
Reasonable assurance letters are most commonly discussed in the context of schools and it’s easy to understand their use with an example. Teachers and other school staff are often allowed extended breaks similar to the student holidays, such as spring and summer breaks, but they remain employed by the school for the duration of the break, with payment still largely due to them for their work before and after the break. As such, schools can provide employment contracts with reasonable assurance to reassure workers that they can return to their jobs following the break. This keeps both employer and employee committed to the job role.
The reasonable assurance definition is not just limited to school employees and can be signed at any point, in any field, between an employer and employee to eliminate any doubts about employment. Employers can choose to provide reasonable assurance for employees who are seasonal workers or work on a contract basis in order to employ their services again. Return-to-work agreements can be signed where employers can provide employees taking voluntary breaks with confirmation that their positions will await them on their return. During mergers or company acquisitions, new employers might send out a sample reasonable assurance letter to employees to indicate that their jobs are not immediately at risk. The applications of reasonable assurance letters are varied, and yet their importance is undeniable.
Importance of Reasonable Assurance for Employees
If you understand what reasonable assurance is, then you might also realize why it can be an important component of employment. Whether included in an employment contract or signed before the beginning of a prolonged break, a reasonable assurance letter can be a great source of comfort to an employee and eliminate any fears of uncertain job security.
More importantly, however, state and federal powers prioritize conformations of reasonable assurance as it plays a role in whether or not an employee can claim unemployment benefits during the break between work periods. If a school employee applies for Unemployment Insurance benefits they need to share details of their current and past employment as well. If it is determined that they have continued employment assurance for the next school term, unemployment benefits are not awarded to them.
According to the Montana Department of Labor and Industry, if an individual has both school and non-school wages and has reasonable assurance of school employment for the upcoming term, two monetary determinations are made for unemployment benefits. One is a ‘high monetary’ determination using all wages, and the other is a ‘low monetary’ determination with school wages excluded. If the low monetary determination indicates eligibility, the person can receive unemployment benefits based on their non-school wages. This is why records of reasonable assurance and other employment details become important.
Writing a Reasonable Assurance Letter for Employees
Due to the complex nature of the reasonable assurance letter and its far-reaching consequences, the letter must be written clearly with no ambiguity on its terms and conditions. Let’s take a look at some things to keep in mind while writing the letter.
Prioritize Clarity
The reasonable assurance letter should be written clearly in simple language and should highlight the terms of the agreement for continued employment. The language should help the signing party understand the vocabulary with ease, while also ensuring that the terms are specific to the rules around the signing of it.
Be Specific
All relevant details should be mentioned in the contract, such as the terms that both parties are expected to uphold, the duration of the contract, the signing and application dates, conditions relevant to the continued commitment by both parties, etc. Terms of employment, wages, benefits, and other details can be mentioned as well.
Include Contact Information
Being clear about the identity of the two agreeing parties can also be a helpful addition to clarifying who is agreeing to the terms of the reasonable assurance letter. The details about the job role and what it entails can be reiterated, as well as the type of work that is to be performed.
Maintain a Professional Tone
As this is a formal document, a professional tone needs to be maintained throughout. Maintain a respectful tone in the letter overall and address the employee with the same respect that is expected from them.
Conduct Legal Review
As this can be used as a legal document as well, ensure that an external, professional voice has had a chance to review and reconfirm the contents of the reasonable assurance sample letter.
Ensure Timely Distribution
There is no specified time period for when the letter of reasonable assurance for employees needs to be sent out but it is ideal to get it shared and signed quickly. Instead of sharing it with employees just before the start of a long break, share it at least a few weeks in advance so they have time to read and acknowledge the terms presented to them.
Sample Letters of Reasonable Assurance
Now that the reasonable assurance definition and purpose are clear, we can look at some sample letters of reasonable assurance for your employees. Use these templates to design reasonable assurance letters that are best suited for your company and reflect the terms and criteria you want to prioritize.
Reasonable Assurance Letter for Substitute Employees
Dear [Employee Name],
This letter is intended to provide reasonable assurance of employment following the upcoming school break. The terms maintained will remain the same as those employed between [academic years]. This assurance is provided on the basis of normal working conditions and does not cover any unforeseen, uncontrollable circumstances such as natural disasters or school shutdowns.
As a result of the reasonable assurance, please note that you will likely be ineligible for unemployment compensation benefits in association with the school wages, drawn during any scheduled school breaks, regardless of the duration. Your employment contract with the school still stands and this is not a replacement for it.
We are grateful for your unfailing services and if you have read, and agree with the terms of the contract, please ensure that you sign this document and re-register with [Name] at [Where to reregister]. Failure to provide acknowledgment and return this letter by [Date] will be seen as a resignation.
Sincerely,
[Name]
[Designation]
[Link form for employee details and provide space for their signature as well.]
Sample Letter of Reasonable Assurance Mentioning At-Will Employment Status
Greetings [Name],
As the year concludes, [Institution] acknowledges your exemplary service as [Employee’s position]. Your commitment and expertise have greatly enriched our institution.
We hereby extend reasonable assurance of re-employment for the upcoming [term, year]. Your role as [Employee’s Position] is integral to our continued success, and we eagerly anticipate your contribution in the coming year. Nothing in this document construes as an employment contract and employment will remain at-will. Both employer and employees hired at will are free to terminate employment at any time unless.
As per the [Statutory Provision], we confirm that you have reasonable assurance of employment as a [Position] for the next academic year [Date].To confirm your acceptance, please re-register with [Department] by [Date].
Sincerely,
[Your Name]
[Designation]
[Institution]
Reasonable Reassurance Letter for Long-Term Employees
Dear [Name],
[Institution Name] extends its gratitude for your dedicated service during the academic [term, year]. We acknowledge the valuable contributions you’ve made in your role as [Employee’s Position] since [Year] and we wish to continue our work together in the upcoming term as well.
As we approach the upcoming academic [year], we are pleased to provide you with reasonable assurance of re-employment as [Employee’s Position], maintaining the wages and benefits according to the terms held this year. Your expertise and commitment align seamlessly with our institution’s goals, and we look forward to another successful collaboration.
To confirm your intent to accept this offer and return for the [year] school year, kindly sign and return the form to [Name/Department] by [Date]. Please note that this is not an employment contract and any negotiations regarding wages and benefits need to be conducted before the start of the next academic term, with the [department].
Regards,
[Your Name]
[Designation]
[Institution]
Brief Reasonable Reassurance Letter
We would like to thank you for your service to the department during the [year] academic year. Looking at our projections for the next academic year [year], we can provide you reasonable assurance that you will be reappointed to your current position as before. As per our discussion, the date of your reappointment will be [date].
Please sign this letter and re-register with [Department] before [date] to ensure there are no hiccups and to complete the documentation at the earliest.
Sincerely,
[Name]
[Designation]
[Institution]
Notice of Reasonable Assurance for Seasonal Re-employment
Dear [Name],
I trust this letter finds you well. As the [current season] concludes, I want to express our gratitude for your dedicated and hardworking efforts as a seasonal worker at [Company/Organization Name]. Your commitment to excellence has not gone unnoticed, and we are pleased to extend reasonable assurance of re-employment for the upcoming [next season].
To signify your acceptance of this offer, please respond by [Date] to confirm your availability for the upcoming seasonal period. We look forward to another successful season working together.
Thank you for your continued commitment to [Company/Organization name], and we anticipate a productive and rewarding season ahead.
Best regards,
[Name]
[Position]
[Company/Organization Name]
These sample letters of reasonable assurance should help you and your organization reach out to employees promptly and receive confirmation quickly as well. The reasonable assurance definition can be expanded to include reassurance of any aspect of a worker’s employment cycle; however, its application for employment confirmation remains its most common use.