Letter of Offer of Employment

What is a Letter of Offer of Employment?

A Letter of Offer of Employment is a basic, formal job offer template for use when an Australian business is offering a full-time or part-time position to a successful candidate. Usually this Letter of Offer would be sent after successful completion of the interview process by the potential new employee as a way to clarify the terms of the offer of employment and prevent any disputes related to salary, position title, benefits or hours.

This Letter of Offer is suitable for sole-traders, partnerships or companies based anywhere in Australia and records all of the terms required to employ a permanent employee under Australian law.

What is the difference between a Letter of Offer of Employment and an Employment Agreement?

A Letter of Offer of Employment is similar to an Employment Agreement, but is much more brief.

A Letter of Offer of Employment is designed to be a quick and easy document for employers to send to employees as soon as they are hired. Many employers choose to send a Letter of Offer of Employment and then to follow it up with an Employment Agreement. However, as an Employment Agreement goes into a lot more detail, the employee may need some time to go through it before they sign it, and therefore it is handy to have a basic Letter of Offer of Employment to get the ball rolling.

Some employers, however, find that a Letter of Offer of Employment covers everything that they need, so they do not bother to follow it up with an Employment Agreement. As long as the employer has looked at what is contained in an Employment Agreement, is happy to forego the additional provisions that it contains, (and has taken legal advice if necessary), then there is nothing wrong with this.

What are the different types of employment in Australia?

Employment in Australia can be on a fixed term or permanent basis:

• Fixed term: The employee is hired for a fixed period of time, until the end of a specific project. Once that fixed period of time ends, their employment will end. For example, this is popular for seasonal work like fruit picking.
• Permanent: The employee is hired on an ongoing basis. Their employment continues indefinitely, until it is terminated by either the employee or the employer. This is the more common employment structure and could include office workers, trades, retail, hospitality, or various other job types.

In addition, whether they are engaged on a fixed term or a permanent basis, employees may also fall into one of the following categories:

• Full time: The employee works full time hours (normally 38 hours per week).
• Part time: The employee works a regular schedule but fewer than full time hours. For example, the employee might work business hours on Mondays and Tuesdays only.
• Casual: The employee's hours vary from week to week, with no guaranteed hours. This is especially common for retail and hospitality workers, but can also apply to many other job types.

Is it mandatory to have a Letter of Offer?

No, it is not mandatory. Some businesses just issue an Employment Agreement. But a Letter of Offer of Employment is a great way to get the ball rolling, to communicate with new employees, to welcome them to the business and to demonstrate the professionalism of the business.

What is a Probationary Period?

It is common in Australia for new employees to be subject to a probationary period of 1-3 months. This period allows the employer to assess whether the new employee is capable of performing the job they have been hired for.

During the probationary period, the employer (and the employee) are able to terminate the employment on 1 week's notice. After the probationary period has expired, more notice is required.

Who can enter a Letter of Offer?

The employee and the employer should sign the Letter of Offer of Employment. The employer could be a company or other business entity (such as a partnership). The employer could even be a sole trader.

The employee should have the lawful right to work in Australia either via their citizenship or a valid work visa.

Each state and territory of Australia has rules about the minimum age for employees. The rules often vary for different industries or categories of work. In many states and territories the minimum age for part time or casual jobs is often quite relaxed. However, there are often more strict rules for full time employees. In most states and territories, employers may also need a Child Employment Permit if they are employing someone under the age of 17.

What has to be done once the Letter of Offer is ready?

Once this document has been prepared, it can be signed by the employer and delivered to the employee. The employee can review it and sign it, then give a signed copy to the employer and keep a copy for their records.

After signing a Letter of Offer of Employment, the employer should also:

• Make sure the new employee has been given a copy of the Fair Work Information Statement.
• If the employee is a casual, make sure they have been given a copy of the Casual Employment Information Statement.
• If the employee is on a fixed term contract make sure they have been given a Fixed Term Contract Information Statement. Copies of each of these information statements are available for free from the Fair Work Ombudsman.
• Get the employee to complete Online Commencement Forms or a Tax File Number Declaration and Standard Choice Super Form. These forms are all available for free from the Australian Taxation Office.
• Make sure they understand their other payment obligations which may include pay as you go (PAYG) withholding tax, the superannuation guarantee and fringe benefits tax (FBT).
• Ensure the employer has workers' compensation insurance to cover the employee. The employer may also need to notify the insurer of the new employee's details.
• Give the employee copies of any relevant workplace policies which might apply, such as an Employee Handbook, Remote Work Policy, Discrimination Policy, Drug and Alcohol Policy, or Social Media Policy.
• Maintain a file for the employee including their full name and contact details, emergency contact details, tax details, payment details, a copy of their signed Employment Agreement, and any other relevant information.
• Keep accurate records for the employee, including payment records and tax records.

What must a Letter of Offer of Employment contain?

A Letter of Offer of Employment should include the following details:

• the employee's name
• the employee's job title
• the employee's duties and responsibilities
• the employee's rate of pay and other benefits
• details of a probationary period (if applicable)
• how the employment relationship might be terminated

Which laws are applicable to a Letter of Offer of Employment?

This Letter of Offer meets the requirements of the Fair Work Act 2009 (Cth) and addresses the requirements of the National Employment Standards (NES). It is suitable for use throughout all States and Territories of Australia.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.