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What Is an Employment Offer?
If you own a small business and are looking to hire employees, you will need to create an employment offer document. An employment offer letter usually goes to the candidate you would like to hire after making an initial verbal offer, but before you complete contingencies like the background check. It also comes before either party signs an actual employment contract.
A typical employment offer will:
- Offer the job to the applicant
- Give details about the company and the job so that the candidate can better assess whether they want to accept the offer
- Summarize the main conditions and terms of the offer
- Serve as a place to start for employment negotiations
If your candidate decides to accept the offer, they will take the next step of signing the letter and returning it to you. Keep in mind, however, that an employment offer letter isn't always the same thing as an employment agreement that's legally binding. An employment agreement will include explicit legal protection for you and the person you are hiring. Still, it can help to have a legal professional evaluate the employment offer you create to make sure that it covers the necessary information.
Are Written Employment Offers Necessary?
You may make your initial employment offer over email or phone. However, you will want to follow that with a formal employment offer letter that confirms important details of the position you're offering, including:
- Benefits
- Job description
- Management structure
- Salary
- Paid leave
Furthermore, the employment offer might be contingent upon your new employee completing additional steps, such as:
- Passing a background check
- Passing a reference check
- Undergoing pre-employment drug testing
A written employment offer is an important step toward making this all official so that both parties have access to the information.
What Should An Employment Offer Letter Include?
There is no one standard format for an employment offer letter. However, most employment offers contain basic information like an overview of the position and specific job details, such as the start date, work schedule, and salary. You can typically order the elements of an employment offer letter to best fit your company and the role you are filling.
Common components of an employment offer letter include:
Company Logo and Letterhead
You can simultaneously convey authenticity and professionalism by using your business's official letterhead and a high-resolution image of the company logo. This can encourage your chosen candidate to seriously consider the offer you make.
Contact Information and Date
You should include the date as well as the candidate's full name and address in the upper left corner of your letter.
Greeting and Opening
Your letter's exact wording will depend a lot on your company culture, so you can make your opening as casual or formal as you want. Typically, you'll start the letter with "Dear," followed by the candidate's full name. Offer a line of congratulations that shows how enthusiastic you are about offering them the position.
Job Details
Make sure that your letter includes specific information about the position and the logistics of working for your company. You want to use the employment offer letter to give a candidate a sense of what to expect. You can also use this formal letter to clarify details that could have been overlooked or misunderstood during the interview process. For example, you can include information like:
- The position's formal title
- Employment classification, such as full time or part time
- Office location
- Anticipated start date
- Reporting structure, such as specifying who the candidate's supervisor or manager would be
- A brief description of the offered role and corresponding responsibilities
Contingencies
An employment offer may be contingent upon a candidate completing certain tasks or specific documents. You want to make this information clear in the letter. Common contingencies include:
- Background checks
- Reference checks
- Drug tests
- 1-9 forms
- Confidentiality or non-disclosure agreements
Here is further reading about what you can and can't include when doing a background check.
Compensation
Make the compensation package you are offering very clear. You can do this by including specific details such as:
- How much the applicant will make
- Whether you will pay the candidate on an hourly or annual basis
- How often you will pay the candidate
- Available methods for receiving payment
- If applicable, commission structures, equity, bonuses, and other related information
Image via Unsplash by youxventures
Benefits
Along with the salary they can expect to make, a potential employee will also take benefits into consideration when deciding whether they should accept your employment offer. You should briefly summarize the key benefits your business provides in the letter. Include attractive benefits that may encourage a great candidate to accept the offer, including:
- 401(k) plan
- Educational assistance
- Flexible spending accounts
- Flexible work hours and/or work-from-home possibilities
- Insurance coverage
- Paid time off
Generally speaking, you will want to avoid getting too detailed here. Detailed information is better suited to an employee handbook or orientation package. However, good benefits can make or break a candidate's decision to work for your company, so you'll want to make sure that they know what perks they can look forward to if they decide to accept the job.
At-Will Status
Include an at-will statement in your employment offer letter. Most states are at-will states. This means that either a company or its employees may terminate employment for any reason at any point in time. A legal professional familiar with your state's laws can be invaluable in determining the proper language to use to describe your company's at-will status.
Expiration Date
Toward the end of the letter, consider whether you want to include an expiration date. A set deadline can help you avoid losing out on other qualified applicants you would want to hire should this prospective employee decline. Typical deadlines would give candidates at least a week to come to a decision.
Closing
End the employment offer on another positive note, showing how excited you are to welcome this potential employee to your team. You should also give them your contact information in case they have any questions for you. Finally, include a line where the candidate can sign and date your employment offer if they decide to accept.
Disclaimer
Think about adding a short disclaimer stating that the offer letter is just informational and does not constitute a legally binding agreement or contract. Again, you will want to work with a lawyer who is experienced in creating these kinds of documents to ensure you do not inadvertently use language in your letter that could carry contractual implications.
Here is an article about when an employer can legally withdraw an offer of employment.
What Happens After a Candidate Receives an Employment Offer?
After receiving an employment offer, your potential employee now has to decide if they will accept or decline the offer. A candidate should sign and return the employment offer letter as formal acceptance of the position if they decide to accept.
A potential employee has a few different options upon receiving an employment offer. They can:
- Accept the offer on the spot
- Ask for a few business days to think about your offer
- Negotiate new conditions within the terms of employment
Once everyone has agreed to the offer's terms, you can create a legally binding employment contract that explains the responsibilities and rights of both involved parties.
Meet some of our Employment Offer Lawyers
Max M.
Results oriented business attorney focusing on the health care sector. Formerly worked in Biglaw doing large multi-million dollar mergers and acquisitions, financing, and outside corporate counsel. I brought my skillset to the small firm market, provide the highest level of professionalism and sophistication to smaller and startup companies.
Orin K.
I'm an employment lawyer. I counsel and represent employees in all professions, from hourly workers to doctors and executives, and all in between. I also counsel and represent employers in many aspects of employment law.
Elexius E.
My name is Elexius. I’ve been practicing since 2016. I began my career doing defense work for insurance companies. I handled worker’s compensation cases, insurance subrogation claims and a number of related employment issues including wage and hour disputes, resignation, termination and release of claims. I also handled employee contract matters and revised contracts as needed for my clients. In my current role I draft contracts and related agreements, including cease and desist, letters of understanding, and various notices. I also handle contractual interference issues.
Michael K.
A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.
June 29, 2021
Erin F.
Businesses, Contracts, Operating Agreements, Corporate, Real Estate, Start-Ups, Cannabis
July 1, 2021
Drew B.
Drew is an entrepreneurial business attorney with over twenty years of corporate, compliance and litigation experience. Drew currently has his own firm where he focuses on providing outsourced general counsel and compliance services (including mergers & acquisitions, collections, capital raising, real estate, business litigation, commercial contracts and employment matters). Drew has deep experience counseling clients in healthcare, medical device, pharmaceuticals, information technology, manufacturing, and services.
July 1, 2021
Daniel R.
Daniel is an experienced corporate attorney and works closely with corporations, privately held companies, high-net worth individuals, family offices, start-ups and entrepreneurs. Daniel graduated from the Gonzaga University School of Law and is licensed to practice law in Illinois.
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Browse Lawyers NowEmployment
Employment Offer
Washington
Is confidentiality needed for an employment offer?
I recently received an employment offer from a company I am interested in working for. However, the offer did not include any kind of confidentiality agreement. I am concerned that the offer may not be legally binding, or that the company may not honor its terms. I am hoping to get guidance from a lawyer on whether or not confidentiality should be included in an employment offer.
Merry A.
I would be happy to help review your offer, but, no, there are no legal requirements in employment or contract law that an employer or you must keep the terms of an offer confidential, or that the contract include any requirement that you keep anything at the company confidential. So, in theory at least, if I offered you a job at $100K/year, I could publish a full-page newspaper ad with all the terms of the contract I offered to you spelled out in the ad. (Now, you may be able to argue an invasion of privacy, but, as to the example I gave you, standing alone, I don't think you would win).
Employment
Employment Offer
Texas
How to handle an unsatisfactory employment offer?
I recently received an employment offer from a company that I have been in talks with for several months. The offer is significantly lower than expected and does not include the benefits I was expecting. I am unsure of how to handle the situation and would like advice from a lawyer on how to proceed.
Garrett M.
One important thing in negotiations like this is that you don't want to let your emotions take over, which will probably lead to you burning a bridge. Even if you were very disappointed in the initial offer, try to stay composed in your communications and just let them know that this is quite a bit below the offer that you were expecting. They will probably say that the offer is more than fair when taking into the market, your qualifications, etc., so it is important that you are prepared with a counter offer and some decent arguments to back up your counter offer. Maybe they mentioned in the hiring process or the job posting that benefits would be included? Maybe you have qualifications that put you above the average market employee in this position? Regardless, employers almost always have some room to move from an initial offer that they make to a prospective employee, so it rarely hurts to ask for a little more.
Business
Employment Offer
Arizona
Can I get an advance on accepting the employment offer?
I recently received an offer for a position that I am very interested in, but I am concerned about the timeline of the offer. I need to give an answer soon, but I'm not sure if I can afford to take the job right away. I'm wondering if it's possible to get an advance on accepting the employment offer so that I can make a more informed decision.
Brian W.
Yes, it is possible. Remember opportunities with employers should be mutually beneficial. Ultimately, you will receive an offer from the employer that you negotiate. In all negotiations, negotiate confidently and reasonably. It is ok to walk away from an offer if it does not meet you expectations.
Employment
Employment Offer
California
Employee or "independent contractor"
Hello, I'm starting a janitorial company. and I'm trying to keep my cost down. as of right now i will be doing all the "cleanings" if i get to over whelm i might need help for one or two gigs which would be 8 hrs or 16 hrs every two weeks if that. so i wanted to see if in California if im able to get help and have them come in as a independent contractor?
Alen A.
Hi there, In California, workers are presumed to be employees UNLESS a company can prove ALL THREE of the following: 1) Control: Worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; 2) SCOPE: The worker perform work that is outside the usual course of the hiring entity's business; and 3) TRADE: The worker is customarily engaged in an independently established trade, occupation or business of the same nature as that involved in the work performed. AB5 does list occupations that are exempt from the test above but your occupation isn't one of them. I would need more information to give you legal advice but based on your question, you will not likely be able to have them as independent contractors.
Employment
Employment Offer
Washington
How to compare multiple employment offers?
I recently received multiple job offers and I'm having difficulty deciding between them. I'm trying to weigh the pros and cons of each offer, and would like to know what considerations should be taken into account when comparing multiple employment offers. I'm concerned about the salary, benefits, vacation time, and job responsibilities, but I'm not sure what other factors I should consider.
Merry A.
Congratulations on receiving multiple job offers. In addition to what you listed as considerations, above, you can review things such as whether these are all for employment (rather than independent contractor); whether you would be considered "at will" or would be given a number of rights as an employee; and whether the employer would provide training/mentorship etc. If I were in your shoes, I'd compare reviews of each employer, as an employer - this can be hard to find, but Glassdoor.com has a limited number of reviews of certain employers. If at all possible, reach out to some current employees at each company and ask the same or similar questions, such as "what do you like or dislike most" about your job and the employer?
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Review PIIA and Employment Agreement
Location: California
Turnaround: A week
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Doc Type: Employment Offer
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Bid Range: $325 - $500
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