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What Is an Offer Letter?
An offer letters, also known as a job offer letter, is a formal communication that establishes an agreement between an employee and employer. The employer sends the employee an employment offer letter that includes the terms of hire. These terms typically include title, pay rate, benefits, and stipulations.
Since an offer letter meaning and laws can vary from state-to-state, ensure that you speak with employment lawyers when using them during the course of your business.
Here is an article about offer letters .
What’s Included in an Offer Letter?
An offer letter is more than just a formal way to let someone know that they were hired. It also serves as a legal record for the prospective employee and your company. Ensure that you put the correct information when drafting an offer letter.
These are the items included in an offer letter:
- Job details, including responsibilities, duties, hours, and travel requirements
- Indication of whether the position is full-time, part-time, exempt, non-exempt, or contract
- An acknowledgment that the letter is intended for offering a job
- Salary offers and information about the pay cycle, bonuses, and commissions
- Benefits that the employee will have, including health insurance, retirement, vacation, employee stock options , and paid time off (PTO)
- Listings of any limitations and conditions of employment, such as a background check, credit check, or drug screening
- How to handle employment termination, including a noncompete agreement , resignation letter request, and a severance agreement
- Explain how the prospective employee can sign and return the letter to formally accept the terms in the offer letter
- Close the letter with information about how the prospective employee can reach you with questions or concerns.
Some industries and businesses may want to include additional information as relevant in their offer letters. If you need legal advice about writing offer letters in your organization, employment lawyers can help you address any question you have.
Here is an article about what’s included in an offer letter .
Purpose of an Offer Letter
The primary purpose of an offer letter is to offer a job to an employee. However, they also offer other unique advantages to both the employer and employee before beginning a working relationship.
Below, there are numerous purposes an offer letter provides, including:
- Purpose #1: Establish the terms of employment
- Purpose #2: Create a paper trail of an employment offer
- Purpose #3: Give the prospective employee a chance to think about whether to accept or reject the role
- Purpose #4: Set the expectation of both the employer and employee
- Purpose #5: Act as a springboard for an employment contract negotiation
There are other advantages associated with an offer letter. Poorly crafted offer letters can have the opposite intended effect on employers. Take the time to learn about how to write an offer letter so that you do not make this mistake with your business.
Image via Pexels by Valeria Boltneva
How To Write An Offer Letter
Ensure that you understand how to write an offer letter from start-to-finish. Doing so helps you include all relevant details and avoids any critical steps when hiring an employee. It will also establish a repeatable process that you can use for future hires.
These are the steps for writing an offer letter:
- Step #1: Start by identifying the employer’s name and sender’s title at the top of the page.
- Step #2: Open the letter with a salutation to the job seeker and congratulate him or her.
- Step #3: Include key details about the job, including the title, main duties, start date, compensation, and name of the employee’s manager.
- Step #4: Leave a blank signature and dateline for the employee to sign.
- Step #5: Provide a date of offer expiration in the letter.
- Step #6: Give instructions for how the employee can return the signed letter.
- Step #6: Conclude the letter with your name, job title, and contact information.
- Step #7: Obtain company approval to send the letter.
- Step #8: Send the letter to the employee via email or postal mail.
- Step #9: Answer any questions or enter into negotiations with the employee.
- Step #10: Begin formalizing the hiring process when the employee signs the letter.
Here is an article about creating an offer letter .
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Example of an Offer Letter
If you need an example of an offer letter, you can generally find a template on Microsoft Word or Google Docs. They can provide a great starting point for you to gather ideas. It is critical to remember that these templates are not customized for your situation, so they may lack key elements.
You can also do a Google search for offer letter examples. Again, you will run into the same situation as Microsoft or Google templates in terms of customization. However, you will be able to find additional options and information regarding offer letter examples through internet searches.
Here is another article featuring examples of offer letters .
Is an Offer Letter a Legal Document?
Offer letters can be a type of legal document. However, they are less formal than an employment agreement or employment contract . Also, employers are under no obligation to send an employment offer letter to new employees.
While even a simple offer letter or offer letter email offers flexibility, it is imperative that employers carefully write them since they can unknowingly become legally-binding instruments. As such, employers must review a proposed offer letter with labor lawyers before transmitting them.
By developing a standardized offer letter template, your organization can avoid making legal mistakes. Your labor lawyers can also create a boilerplate agreement that avoids creating a legally-binding agreement inadvertently. A breach of contract can result in serious employee disputes in the future.
Getting Help with An Offer Letter
While an offer letter may appear to be a simple document, it is essential to remember that it serves a legal purpose. As such, it is critical to draft and execute an offer letter that makes your employee feel welcome to the team while not missing any key details. Doing so may help your company avoid legal disputes in the future, mainly if you write the document with employment lawyers.
Getting help with an offer letter from employments lawyers will benefit your organization in several ways, including:
- Receive legal advice on current and ongoing employment decisions
- Allow someone to handle employment offer letter negotiations on your behalf
- Ensure that all critical components of an offer letter and all employment-related documents comply with local, state, and federal laws
- Answer questions regarding compensation, benefits, and retirement packages
- Keep you informed of employee classification and types of employment rules as they related to offer letters
- Represent you in civil or administrative court proceedings and hearings
- Interpret legal jargon in communications that an employee or their lawyer sends to you
- Prevent any conflicts between employee handbooks and offer letters
- Draft additional employment contracts and agreements as necessary
Many of the above-referenced issues are challenging for many reasons. Instead of leaving your offer letter to best guesses or boilerplate templates, get a customized document from labor lawyers. They will ensure that it accounts for every key legal issue that matters to your business and relevant laws.
Need Help from Labor Lawyers?
If you need help from labor lawyers in your state, post your offer letter project to ContractsCounsel. Start receiving proposals today at no cost!
Meet some of our Offer Letter Lawyers
Michael M.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and top reviews.
Jeremiah C.
Creative, results driven business & technology executive with 24 years of experience (15+ as a business/corporate lawyer). A problem solver with a passion for business, technology, and law. I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. I provide professional business and legal consulting. Throughout my career I've represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I'm one of the most well known attorneys for startups seeking CF funds. I hold a Juris Doctor degree with a focus on Business/Corporate Law, a Master of Business Administration degree in Entrepreneurship, A Master of Education degree and dual Bachelor of Science degrees. I look forward to working with any parties that have a need for my skill sets.
Jason P.
Jason is a self-starting, go-getting lawyer who takes a pragmatic approach to helping his clients. He co-founded Fortify Law because he was not satisfied with the traditional approach to providing legal services. He firmly believes that legal costs should be predictable, transparent and value-driven. Jason’s entrepreneurial mindset enables him to better understand his clients’ needs. His first taste of entrepreneurship came from an early age when he helped manage his family’s small free range cattle farm. Every morning, before school, he would deliver hay to a herd of 50 hungry cows. In addition, he was responsible for sweeping "the shop" at his parent's 40-employee HVAC business. Before becoming a lawyer, he clerked at the Lewis & Clark Small Business Legal Clinic where he handled a diverse range of legal issues including establishing new businesses, registering trademarks, and drafting contracts. He also spent time working with the in-house team at adidas® where, among other things, he reviewed and negotiated complex agreements and created training materials for employees. He also previously worked with Meriwether Group, a Portland-based business consulting firm focused on accelerating the growth of disruptive consumer brands and facilitating founder exits. These experiences have enabled Jason to not only understand the unique legal hurdles that can threaten a business, but also help position them for growth. Jason's practice focuses on Business and Intellectual Property Law, including: -Reviewing and negotiating contracts -Resolving internal corporate disputes -Creating employment and HR policies -Registering and protecting intellectual property -Forming new businesses and subsidiaries -Facilitating Business mergers, acquisitions, and exit strategies -Conducting international business transactions In his free time, Jason is an adventure junkie and gear-head. He especially enjoys backpacking, kayaking, and snowboarding. He is also a technology enthusiast, craft beer connoisseur, and avid soccer player.
Jennifer W.
I am an Immigration attorney specializing in business, corporate, and family immigration. I have served the immigrant (EB1A/B/C, NIWs, and PERM) and non immigrant (H, L, O, TN, E) needs for individuals, families, start-up companies, and some of the largest financial and commercial companies. I have experience with adjustment of status and consular processing. Please let me know how I can serve your immigration needs.
July 11, 2023
David L.
Experienced real estate, business, and tax practitioner, representing start up and established businesses with formation, contracts, and operational issues.
May 23, 2023
Barbara M.
In 1991, Barbara Markessinis graduated cum laude from Albany Law School in Albany, New York. Shortly thereafter, Barbara was admitted to practice in New York State and in the United States District Court for the Northern District of New York. In 1997, Barbara was admitted to practice in Massachusetts and in April of 2009 she was admitted to the United States District Court for the District of Massachusetts. After graduating from law school, Barbara worked in private practice in the Albany, New York area and for Sneeringer, Monahan, Provost & Redgrave Title Agency, Inc. before joining the New York State Division for Youth and the New York State Attorney General's Real Property Bureau as a Senior Attorney. During her tenure with the Division for Youth, Attorney Markessinis found herself in Manhattan Family Court in front of Judge Judy! A career highlight for sure! After admission to the Massachusetts Bar, Barbara returned to private practice in the Berkshires and eventually started her own firm in June of 2006. Attorney Markessinis offers legal services in elder law, estate planning and administration/probate, family law, limited assistance representation (LAR), real estate and landlord tenant disputes. In 2016, after a family member found themselves in need of long term care, Attorney Markessinis’ launched her elder law practice. Through this experience, Attorney Markessinis discovered that the process of selecting a long term care facility and/or caregiver, applying for MassHealth and preserving an applicant’s assets are serious issues faced by many people every day. This area of the law is Barbara’s passion and she offers her legal services to families who find themselves in need of an elder law attorney. Attorney Markessinis is part of the Volunteer Legal Clinic in the Berkshire Probate & Family Court and has provided limited free legal services to patients and families at Moments House cancer support center in Pittsfield. She currently serves as a Hearing Committee Member for the MA Board of Bar Overseers and is a member of the Berkshire County and Massachusetts Bar Associations, Berkshire County Estate Planning Council (BCEPC). Attorney Markessinis is also the host of WUPE Talks Law. She also serves on the Town of Hancock Zoning Board of Appeals and Planning Board.
May 24, 2023
Alan W.
40 years practicing most areas of commercial real estate and commercial real estate financing: heavy emphasis on reviewing, drafting and negotiating commercial shopping center leases, agreements of purchase and sale, title and survey, letters of intent, closing documents, lease amendments, lease terminations, etc
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Review an offer by OPMC New York
Location: New York
Turnaround: Over a week
Service: Contract Review
Doc Type: Offer Letter
Page Count: 3
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Bid Range: $300 - $850
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employee contract - stock option review
Location: California
Turnaround: Less than a week
Service: Contract Review
Doc Type: Offer Letter
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Bid Range: $300 - $1200
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