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Free letter template · Word

Contract Renewal Letter

A contract renewal letter renews an expiring engagement, such as a consultant, retainer or contract staff arrangement, for a further term. It records the new dates, any revised fee or pay, changes in scope, and confirms that the remaining terms continue.

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[Company Logo][Company Name]

CONTRACT RENEWAL LETTER

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Contractor / Consultant Name]
[Address]

Subject: Renewal of Contract Ref. [Original Contract Reference]

Dear [Contractor / Consultant Name],

Your engagement with [Company Name] under contract Ref. [Original Contract Reference] dated [Original Contract Date] is due to expire on [Current End Date]. We are pleased to renew it on the terms below.

TermCurrentRenewed
Period[Current Start] to [Current End Date][Renewal Start Date] to [Renewal End Date]
Fee / Remuneration₹[Amount] per [month]₹[Amount] per [month]
Scope[Current Scope][Revised Scope / No change]
Notice[Notice Days] days[Notice Days] days

All other terms and conditions of the original contract, including confidentiality, ownership of work and termination, will continue to apply during the renewed term.

Please confirm your acceptance by signing and returning a copy of this letter before [Acceptance Deadline].

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Accepted
[Contractor / Consultant Name]
Signature: ____________
Date: [Date]

What this template includes

  • Reference to the original contract
  • Renewed term with dates
  • Revised fee, if any
  • Changes in scope or deliverables
  • Continuation of other terms
  • Acceptance before the old term ends

When to use it

  • A consultant or retainer engagement is ending and both sides want to continue
  • Annual renewal of contract staff
  • Renewing with a revised fee or scope
  • Documenting a renewal agreed by email

How to customise this template

  1. 1Enter the original contract reference
  2. 2State the new fee or pay clearly
  3. 3List only changed terms
  4. 4Send for signature at least two weeks before expiry

HR tips

  • Avoid gaps between terms
  • Review performance before renewing
  • Reconfirm PAN, GSTIN and bank details for vendors
  • Keep all renewals with the original contract

This template is a starting point only. Review it against applicable labour laws (including the Labour Codes in force from 21 November 2025 and the state rules being notified), your Shops & Establishments registration, standing orders and company policies, and take advice from a legal adviser where needed.

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Frequently asked questions

What if the contract expires before renewal is signed?+

Work done in the gap may be disputed. Renew before expiry or issue a short interim extension.

Can terms change at renewal?+

Yes. List the changed terms clearly; everything else continues as before.

Is a fresh agreement needed for renewal?+

Not usually. A renewal letter signed by both parties is enough unless the terms change substantially.