Letter Of Understanding Template printable pdf download

SECTION FIVE– CONCLUSION

PART A – LETTER OF UNDERSTANDING & PAYROLL

Once a candidate has been chosen, the PLTF chairperson will advise the Board chair, who in

turn will negotiate the terms of the Letter of Understanding (see template below).

¶879 LETTER OF UNDERSTANDING TEMPLATE (rev Jan 25/15)

[This template is provided to give guidance to the drafting of Letters of Understanding. It is to be

adapted to accurately express the employment relationship between a congregation and its

pastor.]

Date ________________________, 20___

Name ________________________

Address ________________________

_______________________________

CONFIDENTIAL

Dear (name): ______________________

We are pleased to confirm our offer of employment and your acceptance of your appointment as

XXXXXXXXXXXXXX with the XXXXXXXXXXXX Free Methodist Church. A copy of the

current job description for this position is attached. Please be sure that you fully understand the key

elements of the job and the performance requirements of the position before you sign this

employment agreement.

In order to guide our relationship today and into the future, we have agreed to operate under the terms

of the following employment agreement.

Position Title, Hours, Accountability, Starting Date

As the XXXXXXXXXXXXX, your position is regarded as [full-time, part-time (hrs/week)]. You

will commence work formally on XXXXXXXX, 20__ and report to the Official Board and your

Network Leader. [For staff positions insert… report to your Lead Pastor and to the Official Board

when requested.]

Compensation

Salary (choose paragraph a. or b.)

[use this section only if XXXXXX Free Methodist Church is offering salary and a

Housing Allowance– otherwise delete this paragraph]

We have agreed that your salary will be XXXXXXXXX per annum paid semi-monthly. Of this

amount, a portion may be designated as a tax-free housing allowance because you are a member of

the clergy as per the Canada Revenue Agency formula (Par. 878.1.3). Beyond normal government

programs (CPP, E.I.), the XXXXXXX Free Methodist Church will contribute to The Free

Methodist Church in Canada Defined Contribution component of the Minister’s Pension Plan. You

will be required to contribute a minimum of 3% of salary and XXXXXXX Free Methodist Church

Church Transitions Handbook – rev Jan 2015

Letter Of Understanding Template