Job Offer Template
Mostly likely you, the hiring manager, and the applicant have already verbally negotiated the conditions of employment and the written job offer simply confirms those verbal agreements. Employment offer letters, however, can vary significantly based on the job description and position (hourly, management, executive) being offered and the terms/benefits associated therewith. All significant terms, especially those which involve financial consideration from the Company, should be included (starting/base salary, stock options, paid time off, etc). Other items to consider including are starting dates, any special considerations as to when benefits such as health insurance coverage are active, and any vesting dates for items such as 401ks, and health benefit programs.
All states (in the USA) are considered to have “at will” employment; however, there are some states that have additional laws that may need consideration (public policy exception, implied contract exception, etc.) – see Resources below for link on this topic.
In some cases you can also include an offer expiration date to both help encourage candidates to make a commitment to your Company, and also ensure that you give yourself a timetable to move on to pursue other candidates should this not work out.
Avoid assuming that each party understands the terms of a job offer. A job offer should clearly and unquestionably outline the significant conditions of a position with the Company. As mentioned, an executive position comes with many additional benefits for which an entry-level position would not qualify.
It is of note that all new employees should have a background check completed on the, no matter the position they will be assuming. A drug test is optional, but frequently a preventative element for future issues and risks. Of course, no preventative measures can ensure full compliance with all established company and human resources policies.
Reminder: any changes to employment terms should be outlined in a written agreement – or amendment to an original agreement – to ensure all parties understand the offered and expected responsibilities that job along with the position being assumed at the Company. Any changes should be tendered via a formal offer letter addendum.
A secured method to get a offer of employment signed is online. Online signatures of the parties are legally binding. This is a convenient way to expedite the process and eliminate stress for both you and the applicant.
You can use ApproveMe.com to ensure you have a legally binding signature, and it is convenient for both parties.
One helpful link concerning the employment status of some states is as follows:
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The following is a written job offer for the position of [insert title], which the Company is formally offering to you. Please note that “the Company” shall refer to [insert company name] and “you” or “your” shall refer to you as an individual.
The position title will be [insert title], and you will report to the Company’s [insert title].
This position is a [insert full time or part time] position requiring approximately [40 hours] per week, Monday through Friday, 8:00am – 5:00pm. Some overtime may be necessary depending on the situation. Exempt employees shall not be paid an overtime rate; non-exempt employees shall be compensated for overtime at a rate of 1.5% of their hourly rate per hour of time they work above and beyond forty (40) hours per week.
Employment with the Company is for no specific time period. Your employment is considered “at will,” meaning either party may terminate your employment at any time and for any reason, with or without cause, subject to state law. This offer will constitute the full and complete agreement between you and the Company. Any change to these terms of agreement beyond the normal and customary adjustment of responsibilities, hours, compensation, etc., from time to time during the employment period, shall be agreed upon by both parties in a new or amended written agreement.
Additionally, this job offer, and subsequently any employment with the Company, shall be contingent upon completion and clearance of a background check and/or drug screening, as determined by the Company in its sole discretion. By signing this job offer below, you are giving your express consent to a background check and/or any drug screening requested by the Company.
The Company shall pay you a salary of [insert gross annual salary], payable in accordance with the Company’s standard payroll schedule, subject to federal, state, and local withholding taxes and/or other deductions required by law. Salary shall be subject to adjustments according to Company compensation policy and procedures.
You will be eligible to be considered for Company annual bonus incentives. Bonuses (if any) will be awarded at the end of each fiscal year based on criteria established by the Company. Bonuses are not guaranteed by the Company but shall be determined in accordance with Company financial decisions in its sole discretion. Any bonus shall be paid by Company within [insert number of days] after the close of the fiscal year, only if you are still employed. Should your employment be terminated by either you or the Company, no bonus incentive payments will be made to you.
This position is not eligible for commission payments.
***if position is eligible for commission payments, include the following paragraph***
Once you have successfully completed the first [insert amount of days, i.e., ninety (90) days] days of employment, you will be eligible to receive monthly commission in the amount of [insert commission percentage amount] based on [insert terms, i.e., based on certain dollar amount sold each month, number of new accounts set up, etc.; can also state that those Company specifics will be outlined in more detail or are contained in the Company’s employee handbook or other documents]. Any commission amount shall be payable within [insert number of days] days after the end of each calendar month.
III. EMPLOYEE BENEFITS
Paid Time Off
You will be eligible for [insert number of days] days of paid time off per calendar year, accruing at [insert x.xx hours per pay]. Time will be prorated, if applicable, during the first month of employment. These days are in addition to hours/days that the Company is closed for holidays and/or other activities as determined by the Company.
You are eligible to participate in the Company medical, dental, and vision insurance plans provided by the Company. The Company may pay a percentage of the annual premiums required for such plans and you, as an employee, will be required to pay the remaining annual premiums due should you elect to participate in such insurance plans. Specific terms and conditions of such insurance plans will be provided upon employment. Such plans may change annually based on insurance plan providers and/or availability.
***if position is eligible for any of the following, include the appropriate paragraph(s); if not eligible, delete from agreement***
You shall be paid a signing bonus of [insert amount of bonus], subject to federal, state, and local withholding taxes and/or other deductions required by law. Payment shall be made to you during the first payroll period following employment.
Non-Compete and/or Confidentiality Agreement(s)
You may be required to sign the Company’s standard non-compete and/or confidentiality agreement(s) prior to your start date. You are encouraged to seek the advice of legal counsel should you have any questions concerning the terms contained therein.
After [insert number of days in accordance with your company’s 401(k) policy] days, you will be eligible to participate in the Company’s 401(k) retirement program. Plan specifics shall be provided upon employment.
After [insert number of days] days, you will be eligible to participate in the Company’s tuition reimbursement program. Plan specifics shall be provided upon employment.
You are eligible for a [insert dollar amount] per month vehicle allowance. Vehicle shall be current within the last five (5) [or other amount of years] model years and can be any manufacturer. Further specific terms and conditions shall be provided upon employment.
The Company will reimburse you up to [insert amount] of moving and/or transition expenses incurred by you. A written receipt for expenses shall be provided to Company, along with any other applicable documentation, prior to reimbursement. If expenses are acceptable and allowable, the Company shall reimburse you within [insert days, i.e, thirty (30) days] days from written expense submittal date.
Normal and reasonable telephone and travel expenses shall be reimbursed on a monthly basis in accordance with Company policy and procedures, including but not limited to completion of an appropriate expense reimbursement form and accompanied by applicable documentation. Expenses shall be reimbursed to you within [insert number of days] days following the prior calendar month and upon acceptance by the Company of the appropriate reimbursement form.
You will be eligible for severance pay in the amount of six (6) months’ salary [or other amount or a certain dollar amount] should your employment be terminated by the Company for any reason other than cause (i.e., harassment, violence, theft, fraudulent activities, etc.). The Company shall also cover COBRA expenses for three (3) months [insert other time period] following termination of employment. **last sentence concerning COBRA coverage is optional**
IV. COMPANY POLICIES
As an employee, you are expected to observe and uphold all Company policies and procedures as implemented or varied from time to time as outlined in the Company’s employee handbook. You will not engage in any other employment, consulting, or other business activity which might create a conflict of interest with the Company. By signing this offer and accepting employment with the Company, you hereby confirm that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.
This letter agreement supersedes and replaces any prior agreements, representations, or understandings (whether written, oral, implied, or otherwise) between the Company and you. These terms may not be amended or modified except by an express written agreement between the parties.
Counterparts; Facsimile/Electronic Signatures
This letter agreement may be executed in counterparts, all of which together shall constitute one and the same agreement. Any electronic signature shall have the full weight and authority as an original signature on this agreement. Additionally, any signature page delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment hereto.
Any provision of this agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
This Agreement shall be governed by and construed in accordance with the laws of the state of [insert state where job is located] without regard to principles of conflicts of law.
The headings in this letter agreement are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this agreement.
You may indicate your agreement with these terms and accept this offer by signing and dating this agreement by [insert date offer expires]. Upon your acceptance of this employment offer, the Company will provide you with the necessary paperwork and instructions.
[INSERT COMPANY NAME]
[Company representative name – signature]
[Company representative name – printed]
[INSERT NAME OF APPLICANT]
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Frequently Asked Questions and Resources
What is a contract?
Contracts are defined as written or spoken agreements which are enforceable by law. They can cover any topic or industry, whether sales, tenancy, employment, or otherwise (source).
What are the different types of contracts?
There are many different types of contracts, as defined by upcounsell, those for fixed prices, employment, lump sums, time and materials, unilateral or bilateral contracts, simple contracts and more. Each has its own specific terms, and can either be oral or written and some are non-negotiable (like adhesion contracts) while others have room to be adjusted or amended.
What makes a contract different from an estimate, quote, bid, or proposal?
Mainly contracts are set and finite and legally binding, whereas estimates, quotes, bids, and proposals are possibilities which can be accepted, rejected, negotiated, or ignored altogether. The key difference is that often a bid or proposal will contain terms and conditions that can be signed by the requestor and turned into a contract (source).
What should I include in my contract?
Every contract is comprised of no less than two core components: clearly outlined terms and signed agreement between two separate parties. For more information, read our 12 clauses you should include in every contract.
How should I write an effective business contract?
Contract creation can be challenging, in most cases getting legal counsel is advised to ensure it will be legally enforceable should you require that. Essentially you need basic terms which should be abided by, and an agreement on what product or service is to be provided, to whom, by whom, and what will be tendered with specific terms (such as deadlines, or how the delivery will be completed). For more tips, read our beginners guide to contract writing.
What is the difference between a contract and an agreement?
An agreement is any understanding or arrangement reached between two or more parties. A contract is a specific type of agreement that, by its terms and elements, is legally binding and enforceable in a court of law, according to Diffen.com.
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