From Longman Business Dictionaryengagement letterenˈgagement ˌletterHUMAN RESOURCES a letter in which the conditions under which someone is employed are stated. In the US, an engagement letter is usually given to a CONTRACTOR who has been employed to carry out a particular service or jobSYNLETTER OF ENGAGEMENTThe fee structure must be clearly set out in the engagement letter. → letter