Parties
Identify the employee and the exact legal employer entity, including business address and any subsidiary if applicable, to avoid ambiguity about contracting parties.
A side letter lets employers and employees record one-off changes quickly while preserving the original agreement’s structure. It narrows the scope of modification, reduces negotiation friction, and creates a clear written record that can prevent later disputes.
Depending on company size, a side letter is routed between HR, legal, and the individual employee for signature and retention.
Identify the employee and the exact legal employer entity, including business address and any subsidiary if applicable, to avoid ambiguity about contracting parties.
State the reason for the side letter and which provisions of the original agreement it modifies, helping future readers understand the scope of changes.
Provide precise edit language: replace, delete, or add specific clauses and include section references to the primary agreement for clarity.
Specify whether changes are temporary or permanent and give an exact effective date; include end or review dates for temporary arrangements.
Indicate whether the side letter is confidential and whether it is governed by the primary agreement’s confidentiality provisions.
Include signature lines for both parties and identify signatory authority; state whether electronic or notarized signatures are required.
Choose a platform able to provide a complete audit trail, secure storage (AES‑256), and compliance alignments such as ESIGN, UETA, and HIPAA BAA when handling health data.
| Field | Configuration |
|---|---|
| Authentication | Email link or SMS code |
| Signature Order | Sequential signing recommended |
| Template | Save as reusable template |
| Storage Location | Encrypted cloud archive |
When an executive’s start was deferred, the employer used a side letter to adjust the start date and bonus timing.
Xerox used a side letter to change approval routes for certain remote roles.
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial | Varies by vendor | Varies by vendor | Varies by vendor | Varies by vendor |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |