Offer Letter
What we’ll cover
- About Offer Letter
- Offer Letter FAQs
- Offer Letter checklist
What is an Offer Letter?
The Offer Letter is a formal document issued by an employer to a candidate that has been selected for a job. It includes the essential terms of the offer such as the job title, salary, joining date, place of work, terms of employment, etc. This letter acts as an acknowledgment of the job offer, so that both parties agree on the terms before commencing employment.
When can you use an Offer Letter?
- When the interviews and assessments conclude and the right person is chosen, the organization sends an offer letter.
- It enables you to list the job title, salary, when you will start, what benefits come with the job, your regular hours and similar conditions.
- An offer letter provides a legal document of the offer being made and accepted by both parties.
- If the candidate is accepted with the offer letter, the HR team can proceed with performing background checks, setting up training and creating needed paperwork.
About Offer Letter
An offer letter is your official welcome note to new hires—clearly outlining job details, salary, and next steps to start their journey with confidence.
How To Write an Offer Letter
An offer letter comes from the employer to a selected candidate and states the important details of the job offer. It serves as a signed document that tells both parties what is required of them in the job. You should write an effective offer letter by clearly mentioning all the important terms about work and creating a friendly atmosphere. There are certain clauses found in an offer letter and We will explain what they are below:
The person’s role title and the description of duties
Make it clear which job you are offering and note the main responsibilities included in it. It informs the candidate about the responsibilities related to the job.
Start Date
Inform the candidate about when they are to start their new job. Feel free to mention any pre-work duties such as checking and verifying your documents or performing a background check.
Compensation Structure
Include details of what will be paid, along with bonuses, performance bonuses or incentives. Indicate whether the pay is given monthly or bi-weekly and mention if taxes will be deducted.
Probation Period
Most firms add a probation period clause that can last from 3 to 6 months. Indicate for how long the job is expected and what circumstances must be met for the job to become permanent.
Work Hours and Location
Determine when the employees should work and state the days and place of their work. If staff can work from home or in a hybrid setting, add this fact to your policy.
Benefits and Perks
Mention any extras such as health insurance, paid vacation/sick days, support for travel and retirement options. It can be a valuable component within the offer.
Confidentiality Clause
Add a reminder that the employee should retain confidentiality regarding the company’s data, clients or secret information during their employment and for a while afterward.
Termination Clause
Describe the rules that will allow the agreement to be ended by one side. Such a contract explains the notice clause, the situations when termination can occur and any available severance.
Code of Conduct
Make sure the employee knows that they are required to follow the company’s rules of conduct which involve behaviors and ethical practices.
Acceptance and Acknowledgement
Add a space where the candidate can write their signature and put the date to attest to their choice and agreement with everything in the letter.
Offer Letter FAQs
Offer Letter Checklist
Write an Offer Letter That Suits Your Needs
It is easy to customize an offer letter by providing details such as the job description, candidate’s name and your company information. At Draaft, we will ensure each part of your offer to confirm it is well-written, detailed and polished. Now is the time to work on the offer letter.
Pick and Review the Offer
After finishing the letter, look it over one more time to confirm the job title, beginning date, the pay scheme and the conditions of employment are included. Verify the information with HR or the person who is interviewing you to make sure everything is correct.
Ensure that mandatories are part of the contract
All the necessary terms should be described in the offer letter you send.
- Compensation and benefits
- Probation period (if any)
- Working hours and job location
- Termination and confidentiality clauses
These clauses protect both the employer and the new hire.
Sign and Send the Offer Letter
After the offer is approved, an authorized person from the company needs to sign the letter. Nowadays, most digital signatures can be completed online by sending the letter either by email or through available digital signing services. Provide an easy way for the candidate by giving a definite time and date for returning the acceptance.
Make Duplicate Copies
Once an offer letter is signed by both people, store the copies in your HR system carefully. Deliver one copy of the contract to the employee and keep one for yourself. If a company uses an HR platform, the document can be properly stored and accessible when needed.
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