Offer letter
Definition
An offer letter, also known as an offer of employment, is a formal document sent to a job candidate outlining the terms and conditions of employment before they officially join the company.
When is an offer letter sent?
Typically, an employer sends an offer letter to a prospective employee after they have accepted the job offer, either verbally or via email or phone.
Upon receiving the offer letter, the candidate is expected to review the terms and formally accept the position, usually by signing the letter. It's common for the offer letter to be signed by both the new employee and a representative of the company, such as the hiring manager or a senior executive.
What should you include in an offer letter?
An offer letter typically includes:
The employer's official letterhead or company name
Job title and a detailed job description
Start date of employment
Duties and responsibilities associated with the position
Working hours and work schedule (whether full-time or part-time)
Details of employee benefits and perks
Compensation package specifics (including starting salary, base salary, bonuses, commissions, etc.)
Termination policies or statements regarding at-will employment
Legal terms and conditions, such as non-disclosure agreements or confidentiality clauses
Contact information for the employer or relevant company representative
Are employment offer letters legally binding?
Yes, an employment offer letter can serve as a legally binding contract between the employer and the new employee. Both parties are expected to adhere to the terms outlined in the offer letter once it has been signed. Any violation of the terms may result in legal consequences.
Before finalizing the offer letter, the employer may conduct reference checks, background checks, or drug tests as part of the hiring process.
Can you negotiate an employment offer letter?
Absolutely. Job candidates have the right to negotiate various aspects of the offer letter, including salary, benefits, and other terms and conditions, before accepting the position. It's essential for candidates to feel empowered to discuss and negotiate terms that align with their expectations and needs.