Employee Offer Letter

What is an Employee Offer Letter?

An Employee Offer Letter is used when an employer is interested in offering a position of employment to a potential employee. Most times, the offer is made verbally, and an offer letter is sent to confirm the verbal offer. An Employee Offer Letter is intentionally made brief in order to avoid any confusion with an employment contract.

If the potential employer and potential employee have reached an agreement and wish to finalize the employment terms, an employment contract should be used.

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

An Employee Offer Letter is used when an employer is interested in offering a position of employment to a potential employee. On the other hand, an Employment Agreement is used when the employee accepts the offer, and for the employer to lay down the details of employment of the employee.

It is a practice that an Employee Offer Letter is first sent to the employee before an Employment Agreement is signed by said employee.

Is it mandatory to have an Employee Offer Letter?

No. An Employee Offer Letter is not necessary as the law does not require the same to give rise to an employer-employee relationship. However, as a matter of practice, this will enable the potential employee to signify his desire to be employed by the employer, and this will also serve as documentation that the employer wants to employ the potential employee.

What must an Employee Offer Letter contain?

An Employee Offer Letter contains the following information:

• The details of the employer,
• The date when the letter will be sent,
• The details of the potential employee,
• If desired, the requirements for the acceptance of the offer or employment,
• If desired, a deadline for the potential employee's acceptance of the offer, and
• The contact details of the employer.

Who is involved in the Employee Offer Letter?

The sender is the employer or his duly authorized representative and the recipient is the potential employee. The sender must affix his signature thereon to signify that the potential employee is offered employment.

What can be the duration of an Employee Offer Letter?

The employer has the option of providing a deadline which may be a matter of days or weeks within which the potential employee may accept the offer of employment. The employer may also choose not to include said deadline in the Employee Offer Letter.

If after the deadline, the potential employee fails to signify his acceptance, the offer of employment will be considered withdrawn. If the potential employee accepts the offer, then they may enter into an Employment Agreement.

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

If it will be sent via registered mail, at least two original copies should be printed. Both original copies of the letter should be signed by the sender (the employer or his authorized representative). One original copy should be kept by the sender, and the other should be sent to the recipient (the potential employee) by registered mail. After sending, the registry receipt or mail receipt in relation to the mailing of the second original copy must be kept by the sender.

If it will be sent via email, the sender must send an email attaching one scanned copy of the letter that is duly signed by the sender or one digital copy that is electronically signed by the sender. An email is a recommended way of sending this letter as the letter is sent instantly and it will enable the parties to keep their records in a convenient manner.

What are the costs involved in the finalization of the Employee Offer Letter?

Costs for sending the Employee Offer Letter may depend on the method used by the sender in sending the letter. Email and instant messaging are the most cost-efficient ways of sending a letter as they are generally free, whereas costs for registered mail or courier will be dependent on the distance between the residence of the sender and the recipient.

Which laws are applicable to Employee Offer Letter?

The Labor Code of the Philippines is the law that governs employment relations in the Philippines.

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