Offer of Employment Letter

Offer of Employment Letter

An offer of employment letter or a Job offer letter is a formal letter, created and sent by the employer to a potential employee, that includes key details about the offered position or job.

What is the Offer of Employment Letter?

Offer of employment letters or job offer letters is considered a proposal, created and sent by the employer, to a job candidate. This offer sets out detailed information about the job that is offered to the potential employee, including the starting date of work, salary, benefits, working conditions, and terms of employment, which are the responsibilities and benefits of the job.

Any other information that can help convince the potential employee to accept the offer can be added and specified in the letter since the offer of employment letter can be accepted, declined, or negotiated between the employer and the potential employee.

Job offers can be delivered verbally or in writing, but the offer of employment letter should be written and delivered to the candidate as a document, an email, or in an attachment with a congratulatory email sent to him/her.

The offer of employment letter can be modified and changed after any negotiation between the employer and the potential employee.

What is included in a job offer?

A job offer letter from employer to a potential employee or a candidate should include

1. Job title

To inform the candidate about the position that he/she will be in, to have a general idea about the nature of the job, and the tasks or responsibilities that he/she will deal with.

2. Job description

To give the potential employee a clear idea about the position, the department that he/she will work under, and the tasks and responsibilities that he/she will expect.

3. Starting date

It is very important to include the starting date of employment in the offer letter to measure the employee performance over time.

4. Work schedule

This part deals with the working hours that the potential employee will have to respect, and the position status (part-time, full-time, seasonal, temporary full-time), and if there are any additional shifts that the potential employee will have to work for.

5. Reporting structure

To inform the potential employee who will be his/her supervisor(s), and how to send daily, weekly, or monthly reports to the supervisor(s).

6. Salary

This part includes the basic salary, compensation bonus, and/or commission if applicable. This part should be detailed and clear for the potential employee. It also includes how the company or employer will pay for overtime, and bonus plan information, if applicable, and eligibility requirements.

7. Paid time off

To inform the potential employee about his/her right to paid time off, and the employer’s policies regarding this matter.

8. Employee benefits

This part helps in convincing the potential employee to accept the offer, by explaining the additional benefits that the potential employee will have if he/she continued working in the specified position in the future. This part may include benefits information and eligibility.

9. Privacy policies

This is an essential part of the offer of employment letter, since it deals with policies that the potential employee should respect when working with the company, especially if the offered position will give access to the potential employee to confidential information or documents.

10. Termination conditions

This part deals with the notice period requirements for termination of employment or resignation in the future, and the company’s policies regarding this matter should be specified here.

11. Basic duties and responsibilities

This part can be included in the “job description” part, and it can be specified in an independent part, to inform the potential employee on what to expect when working in the specified position offered to him/her.

12. Acknowledgment of offer and confirmation of acceptance

This part is where the potential employee decides on accepting, declining, or negotiating any part or area of the letter and its details.

Key points

• Job title
•       Job description
•       Starting date
•       Work schedule
•       Reporting structure
•       Salary and benefits
•       Company’s policies
•       Basic duties and responsibilities
•       Termination conditions
•   Acknowledgment of offer and confirmation of acceptance

Offer Letter Vs. Employment Contract

Both an offer letter as well as an employment contract are offered to an employee before their onboarding.  However, an offer letter is just a formal letter offering a candidate a position or job. There is no guarantee that they will get it as there could be further preliminary rounds. Further, candidates can also negotiate for better terms, pay, or benefits when they’ve received an offer letter.

On the other hand, an employment contract is a legally binding contract between an employee and an employer. Here, the terms of employment including their salary or wages, working hours, etc are specified.

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Along with this document, make sure you see these other templates in our library:

• Share Purchase Agreement
• Letter of Intent
• Job Offer Letter
• Simple Agreement for Future Equity (SAFE)
• Resignation Letter
• IP Assignment

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