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Offer Letter

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About Offer Letter

An offer letter is given to a person by a company, making a formal job offer to him after the completion of the selection procedures

How to Use

This offer letter format can be used by a HR Manager of the Company or Manager of a Company for the purpose of informing a job application of the successful evaluation of his candidature. The candidate then has a basis by which he knows for sure that he has been employed and will be ready to take up employment and receive the corresponding benefits subject to the terms and conditions stipulated therein.

How to Create

Job offer letters are printed on the letterhead of the employer and signed by the Management or HR Manager authorized to hire the candidate. It is usually accompanied by some sort of company seal or trademark, so as to give it an added quality of formality and importance. In case the candidate accepts the position, the candidate must himself sign a copy of the letter and return it to the employer to indicate acceptance of the job offer.


An offer letter typically provides a brief overview of the position and the company. It lets the new employee know specific details of the position, such as job title, starting date, annual base salary, work schedule, and benefits. There is no standard format for a job offer letter template, but we recommend that you include the following components.

Company Logo

Date and Contact Information



Job Details



What Should Be Included in an Offer Letter

Formal offer letters provide an opportunity to solidify expectations and explain key details of the positions, salary and benefits offered. Key terms of employment to include in an offer letter include:

Job Details, Compensation and Benefits

  • Position/Title
  • Name/Position of Supervisor
  • Full-Time/Part-Time Schedule
  • Exempt/Non-Exempt Classification
  • Duties
  • Compensation
    • Base Salary (Exempt Employees)
    • Hourly/Overtime Rates (Non-Exempt Employees)
    • Bonuses/Commissions
  • Benefits
  • Compliance with Employer Policies/Handbook

A Statement of At-Will Employment

At-will employment means that the company or the employee can terminate the relationship at any time. Not only should you state this in your offer letters, but you should avoid any language that implies a fixed time period of employment.

  • Avoid Language That Implies a Fixed Term of Employment
  • Avoid Language That Implies the Offer Letter is an Employment Contract
  • Include Language Expressly Stating the Relationship is At Will.

A List of Any Applicable Contingencies

To provide clarity and align employee-employer expectations, it’s important to include if employment is contingent upon certain conditions such as:

  • Criminal Background/Credit Check
  • Passing a Drug Test
  • Government Contract Award
  • Having/Obtaining/Maintaining a Security Clearance
  • Signing a Non-Compete or Non-Disclosure Agreement

Additionally, it's important to do your research on any applicable employment laws for your state and industry as this might affect the language you include in your offer letter. For example, California and New York require an additional wage notice to non-exempt employees.

Frequently Asked Questions

An offer letter is a letter given by a company to an potential employee that provides key terms of the prospective employee's employment.

Contrary to what most people think, a signed offer letter, except in very rare instances, is not a legally binding implied contract. Candidates often think that because they have signed and accepted an offer letter, they have some sort of legal right to the job.

The Job Offer Letter. A job offer letter is a document that confirms the details of an offer of employment. The job offer letter includes details such as job description, reporting relationship salary, bonus potential, benefits, vacation allotment, and more

Similar to an offer letter, a contract lays out the details of a role and includes many of the same key pieces of information. However, unlike an offer letter, a contract typically has a specific time period attached to it and is used in cases where employers are hiring someone for a certain amount of time.

Agreement occurs when an offer is accepted and this acceptance has been communicated to the offeror. Once an offer has been accepted it becomes legally binding. In employment law acceptance would occur when the prospective employee accepts the verbal or written offer and this is communicated to the employer.


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