What Are Offer Letters?
An offer letter is a tangible document, usually on company letterhead, that lays out the offer of employment. This is typically preceded by a verbal offer when the formal offer of employment is first made. Employers like to include items such as start date, salary, work location, and a high-level overview of other benefits the employee will receive at the onset of employment.
The offer letter is commonly signed by the employee and returned to the employer (electronically or by mail) before the start of employment to formalize the job offer’s acceptance. The format is quite simple and typically does not exceed one page in length, as the goal of this document is to provide a high-level overview of employment expectations.
Offer letters are the initial agreement between employer and employee. Depending on the job’s global location and that country’s employment legislation, no further agreements may be required for the two parties to proceed with a compliant employment agreement. However, many countries require a formal Employment Agreement. Employment Agreements are longer documents that include all aspects of the employment contract, clearly stated rights and responsibilities of both the individual and the company, and outline all other benefits in detail.
In most countries, an offer letter is a legally binding document once it has been signed.
Our team understands what it takes to create the ideal offer letter based on your intended employee’s location. We will walk you through the offer letter development process, advising on any content requirements per local legislation and items best avoided, also based on the local government’s employment regulations.
The breakdown of an offer letter can look similar to the format below:
Hiring Manager Name
City/State or Province/Country and Postal Code
City/State or Province /Country Postal Code
I am pleased to offer you the position of X with Company ABC with a starting date of January 20, 2021. This position reports to Manager A and is located at our company headquarters in City, State.
This is a regular full-time position with an annual salary of $100,000 USD, paid monthly. You are also eligible to participate in our supplemental benefit plan offerings, including health, life, dental, vision, company phone, and company vehicle. Additional details for your review are included in the enclosed attachments.
Please let us know if you intend to accept this offer of employment by signing and returning this letter no later than January 8, 2021.
I look forward to working with you.
Hiring Manager Name
Candidate Name Date
Learn more about forming employee offer letters by clicking here.