Employee Offer Letter

What is an employee offer letter?

An employee offer letter is used by an employer who is offering a position of employment to a potential employee. Offer letters are used across multiple businesses, but especially for professional positions. It's common in professional situations to make a verbal offer to the employee first and then follow it up with a written offer letter. Employers may also wish to use an offer letter in the situation that they interviewed multiple different candidates, and find it easiest to simply send the candidate of their choice a letter.

What is the difference between an employee offer letter and an employment agreement?

Though both documents are used when bringing on a new employee, they are used at different points in the process. The employee offer letter is used by the employer to let the potential employee that they are being offered a job. It may contain details of the benefits that come with the job, but does not include the full terms of the agreement.

An employment agreement is used once the employee has accepted the position and has negotiated the terms of their agreement with the employer. The employment agreement outlines the full scope of the responsibilities that come with the job.

Is it mandatory to have an employee offer letter?

No, it is not mandatory to have an employee offer letter. Small businesses which do not have many candidates for jobs often just make a verbal offer of employment. However, many businesses choose to use employee offer letters both for their records as well as easing the hiring process as they interview many candidates.

What is a "probationary period"?

A probationary period is a time at the beginning of employment during which the employee's performance and fit with the company are closely monitored and evaluated. This acts as a trial period for the employee and employer to figure out whether the employee is a good match for the position and will stay with the employer long term.

Who is involved in an employee offer letter?

An employee offer letter is created by the employer and sent to a potential employee. There are age restrictions on employment that vary from state to state. In many states, if the person being employed is under the age of 18, they need permission from their parents or legal guardians to work.

What should be done once the employee offer letter is finished?

When the employee offer letter is written and all the relevant information has been included, the employer should print and sign the letter and then send to the employee via mail or email. The employer may also save a copy of the letter for their files if desired by their human resources department.

What must an employee offer letter include?

An employee offer letter must include at least the following mandatory clauses:

• Identifying information: The employee offer letter includes the name, address, and contact information for both the employer and the potential employee.
• Position name and type: The employee offer letter states the name of the position that is being offered to the potential employee, as well as whether the position is full-time, part-time, or fixed term.
• Scope of employment: The employee offer letter describes the structure of the employment relationship and includes details such as the number of hours the employee will be expected to work, how long the employment will last, and what kind of commitment is expected from them.
• Start date: The employee offer letter specifies the start date and time when the employee should report to work with the employer.
• Compensation: The employee offer letter lays out when, how, and how much the employee will be paid for their work with the employer. The letter also specifies the date when the employee will first be paid.
• Benefits: The employee offer letter outlines the benefits, such as health insurance or retirement benefits, that the employer is offering to the potential employee in exchange for their work with the company.

Which laws are applicable to employee offer letters?

There are no laws outlining what must be put into an employee offer letter. There are, however, some overall accepted practices for creating such documents, including making sure the information is robust enough and covers the details of the job.

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.