Offer Letter Template “You’re Hired!”
An offer letter is a formal document extended to a potential employee. An offer letter outlines the employer’s proposals and details a candidate’s role.
- This Offer Letter Template is a universal guide to help you tailor your very own offer letter.
- An offer letter formalizes the proposed terms of the employer’s offer.
- Employment Offer Letters are used for salaried employees, hourly, and/or seasonal employees.
- Download your offer letter template now!
The Importance of an Offer Letter
An offer letter is a professional document that can cover many bases. It specifically addresses the potential employee’s role, pay, and other terms for their review. A written offer letter eliminates any confusion as to the job offer and the candidate’s expectations.
An Offer Letter is Not an Employment Agreement
It is essential to distinguish the difference between an employment offer letter and employment agreement. An employment agreement is presented after the offer of employment has been accepted. An employment agreement serves as a legally binding contract that expressly documents all terms of employment in specific detail. An employment agreement is a separate legal document that is a necessary legal document.
An employment agreement may also include an arbitration clause. An arbitration clause binds the employer and employee to resolve any disputes via arbitration. Peep our mutual arbitration agreement template here! Employment agreements are usually paired with a non-compete agreement, non-disclosure agreement, and/or confidentiality agreement.
What is the Importance of a Written Offer Letter?
As with any contract or agreement, a written agreement offers the most security. A written document is more formalized and details the terms of the offer and conditions of employment. Verbal employment offers can be easily misconstrued, leaving the door open for confusion down the road. A written offer of employment can evidence the agreement between the employer and potential employee.
A job offer letter may include some contingencies as well. For example, an offer of employment may be contingent upon:
- Passing a drug test
- Clean or acceptable background check per the company’s policies
- Reference Check
There may be other contingencies that must be met before the offer of employment can be fulfilled. If such contingencies are not met, the offer letter may be deemed moot unless otherwise noted in the offer letter or other written agreement.
What are the Essential Elements of an Offer Letter?
An offer letter should include a few basic elements. A written offer of employment should cover the following:
- Company Name
- Job Title / Position Title
- Job Description
- Employee Benefits (dental, vision, or health insurance, stock options, 401(k) plan, profit-sharing, pension benefits, paid time off
- Compensation Package (Annual Salary/ Base Salary, Hourly Rate, Commissions)
- Terms of Employment
- Work Schedule
- Reporting Manager/Supervisor
- Expected Start Date
- Job Offer Expiration Date
- Signatures (Employee, Employer, and/or Human Resource Manager)
Depending on the company and their employment needs, the elements may vary. Additionally, employers generally start employees on a 30,60 or 90-day probation period before offering employee benefits.
Lastly, another vital aspect of an employment offer letter is a description of the employment relationship. Employment relationships are usually “at will.” At-will employment provides that either the employer or employee may terminate the employment relationship for any reason and any time with or without cause.
Termination may be “for cause.” This includes violations of the employee handbook or employment agreement, such as excessive tardies, write-ups, or the exhaustion of the employer’s progressive discipline policy. Without cause deals with circumstances that are usually out of the employer’s control, such as layoffs unrelated to performance issues.
It is imperative to reach out to an experienced attorney when drafting employment documents for your business. An attorney can explain the ins and outs of employment law. They can break down the rules and regulations preventing the termination of employees belonging in a protected class, restricting the termination of any employee based upon discrimination related to race, gender, religion, disability, age, ethnicity or national origin, and more.
Common Mistakes Found in Offer Letters
The answer is simple. One of the most common mistakes found in offer letters is not having one. An employment offer letter is an essential hiring document presented during the onboarding process.
How do I get my Offer Letter Signed?
ApproveMe is the most effective and efficient way to get your employment offer letter signed. Employment offers are usually presented in a job offer email. With ApproveMe, you can not only draft your employment offer letter using our template, but you can also email it to your potential employment ready for their review and signature.
ApproveMe’s E-Signature WP tool will transform the way you get your employment offer letters signed! Check out our other employment templates to better fit your hiring needs:
- Hourly (Non-Exempt) Employment Offer Letter Template
- Employment Termination Letter Template
- Employment Status Change Template
- Health Insurance Election Form Employment Template
- Non- Compete Agreement Template
- Non-Disclosure Agreement Template
- Confidentiality Agreement Template
- Employment Contract Template
- Employee Handbook Template
Helpful Resources for Employers
It can be challenging to find the PERFECT employee to fit your company’s needs. Moreover, employers also strive to provide the best benefits for their employees. Here are a few helpful resources to explore:
Employee Benefits Resources:
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We are pleased to offer you the position of ___________________________________ with _________________________________ (the “Company”).
We hope you are excited and energized by the opportunity available to you at ____________________as we work toward achieving our goals of progress and growth. At ____________________, you will be part of a collective movement toward many end goals. We take great pride in knowing that our employees are making a distinctive difference to our clients and thriving in a culture that anchors us as we all seize every opportunity to perform at the highest level.
You will report to ________________________ and your primary office will be located at ___________________________________________. Following are the details of this offer:
● This is a full-time exempt position. Your work schedule will be Monday to Friday _______a.m. to _______ p.m. and you are expected work approximately ________ hours per week.
● Your expected start date is _________________ .
● Other: ______________________________________________________________________________
● You will receive an annualized net starting salary of $_______________, payable bi-monthly in accordance with The ___________________’s standard payroll schedule. This salary will be subject to adjustment pursuant to the ___________________’s compensation policies.
● All forms of compensation referred to in this letter are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.
As a regular employee of ____________________, you will be eligible to participate in several company-sponsored benefit programs. ____________________ offers a comprehensive employee benefits program, that includes:
❏ 401(k) Plan;
❏ Profit Sharing;
❏ Vision Insurance;
❏ Paid Time Off and paid vacation in accordance with ____________________’s policy.
❏ Other: ____________________________________________________________________________________________________________________________________________________________
● Your employment with ____________________ will be “at will,” meaning that either you or ____________________ may terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may have been made to you are superseded by this letter agreement.
● This is the full and complete agreement between you and ____________________ on this term.
Although your job duties, title, compensation, and benefits, as well as ____________________’s
personnel policies and procedures, may change from time to time, the “at will” nature of your
employment may only be changed in an express written agreement signed by you and a duly
authorized officer of ____________________ (other than you.)
● This employment relationship is not to be construed as a contract of employment for a definite period of time.
● The expiration of this offer is ___________________________ at ________ [a.m./p.m.][CST, EST, MST PST].
If you choose to accept this employment offer, please contact Chief Operating Officer, _________________________, at your earliest convenience. If you have any questions concerning these items or any other issues relative to ____________________, please let me know. We look forward to welcoming you to our team!
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