An employment offer letter template is a tool used to convey the information effectively to the candidate that you are hiring. By having this template, you just need to change a few details each time you hire someone.
Table of Contents
What to include in an employment offer letter?
Depending on how much information you want to include, you can customize your employment offer letter. Use your company’s official letterhead for a professional touch. However, the job offer letter typically includes the following basic details;
- Job title
- Job description
- Starting date
- Work schedule
- Reporting structure
- Salary
- Paid time off
- Employee benefits
- Privacy policies
- Termination conditions
How to write a job offer letter?
You should write a job offer letter in a specific way to make it effective. Let us discuss step-by-step how to write it;
Date and company details
A job offer letter is written just like an official letter. Thus, at the top left of the letter, you need to have the date of the letter then write the legal business name, the address, and contact details beneath it. All these details should be kept in block format at the top of the letter.
Formal letter formatting
Start the letter by addressing your new hire including his/her complete name. You should make sure that you have the spelling of the person’s name correctly. Don’t forget to include any middle names or secondary last names.
Description of the position
Describe the job position clearly so that there is no confusion about the job. There is no need to explain the work duties in detail but keep the title and its relevance to your company clear. If you have different business locations or work groups within your company then specify the name of the direct supervisor and the division that the person will be working in.
Expected start date
In the employment offer letter, indicate this part of the information with the exact language that the actual start date of the new hire may be delayed or changed as many things can happen. Moreover, indicating the only possible start date in the letter may lead to issues with their actual hire date.
Salary and other benefits
The next thing you need to mention in your letter is the salary that the person will be paid as well as any benefits or bonuses that will be offered to them as part of their hiring package. These may include retirement, health insurance, a signing bonus, etc. Also, mention any allowances that you are offering them for relocating to where your business is. Don’t discuss them in detail but include them in your offer of employment letter for clarity.
At-Will status
In this part of the employment offer letter, specify that an employee can be terminated by his/her employer at any time for lawful reasons. Keep this section of the letter precise, there is no need to discuss in detail the termination reasons. You just have to state that you can terminate the employee because of unlawful actions. In the boarding process when the new hire comes to their first day of work, include the termination clause and other details about this topic.
Closing
Specify in the closing part of the letter how the new hire can reach you if they want to contact you. It would be recommended to include the HR contact number in this part of the letter. Affix your signature at the end of the letter and welcome the new hire for employment in your company. Doing so gives the employee the right feeling of welcome to your company.
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Is the job offer letter legally binding?
When you are offering someone a job with an employment offer letter, keep some legal considerations in mind. The main thing that you must avoid in your letter is to have any language that might create a contractual obligation. Consider the following pointers;
- To any specific clause of the employment offer letter, avoid mentioning ‘promise’ or ‘commitment.’
- Avoid including any details about promotional opportunities or anything that is not relevant to the job.
- There is no need to show that this letter will be rescinded for any reason.
Unlike the hiring contract that is signed when a new employee begins working, the job offer letter does not carry the same legal weight. Additionally, the offer letter implies that you will honor the job opening and provide all the benefits to the new hire that you have stated in the letter. Ensure that your job offer letter is not a promising thing that could run you into legal issues with the new hire if you change the terms of the contract.
Hence, in a direct sense, the employment offer letter is not legally binding as the employee does not sign it like a contract.
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FAQ’s:
When to send a job offer letter?
You should send a job offer letter right after the candidate’s successful completion of the interview process and when a hiring decision has been made.
Can a candidate negotiate a job offer letter?
Yes, a candidate can negotiate the offer letter and discuss specific aspects of the offer like salary, benefits, and more.
