Download offer letter template | Meaning & Definition | Akrivia HCM

A job offer letter is a written outline of both the employee and employer’s obligation to work together. This kind of agreement outlines the employment details, including but not limited to salary, benefits, number of vacation days allotted per year, term of employment, and expected start date. Both parties usually sign an offer letter once negotiations have ended to ensure that no one changes their mind.

What is an offer letter?

An offer letter is a document that an employer sends to a job candidate to officially offer them a position within the company. This document contains all the details of their joining and the breakdown of salary and benefits. It is a legally unbreakable contract between an employer and an employee. You must read it closely before you sign it, as this will be the primary document that will describe your rights and duties with your organization.

It also includes relevant information like your designation, salary, joining date, etc., and other essential details like joining bonus, medical benefits, etc.

Differences between an offer letter and an appointment letter

The offer letter is not the same as an appointment letter. It is only an indication that the company has selected the candidate for a specific position and is willing to hire them. Both parties must accept the offer letter before it becomes a formal agreement.

However, the offer letter is crucial for both the employer and the employee. Neither party can consider it an agreement unless they accept the terms and conditions mentioned After you get all the terms and conditions, you will have to sign a formal agreement with both parties.

An appointment letter is a written document that formally confirms an employee’s acceptance of a job offer. The hiring manager sends it after an applicant has accepted the company’s offer of employment.

What does a job offer letter include?

A job offer letter legally confirms the terms and conditions of employment.Both parties keep a copy of the employment details for future reference.

The letter must contain all the vital information regarding the working relationship between the employer and employee. Some of these are:

Job title: this helps to specify what kind of work will be done by the employee.

Job description: it clearly states what the job entails and what will be expected. Generally, it mentions their roles and responsibilities about the overall functioning of the business.

Privacy policies: state how confidential information will be dealt with within the company and how employees may interact with customers and suppliers.

Employee benefits: they list out all the help given by employers, such as medical insurance, vacation leaves, and retirement plans.

Leave policies and breakdowns: they detail how much paid leave employees can take each year and when they can expect it to be granted.

Salaries breakdowns: this part gives a detailed account of all deductions made from their salary, such as taxes, medical insurance, pension contributions, etc.

Date of joining: The joining date of the employee.

Sample of

Dear [Name],
We offer you the position of [job title] at [Company Name], starting [date].

As we discussed during your interview, the position offers an annual salary of [Rs], along with a bonus of [Rs] after six months of successful employment. Additionally, we will also provide company health plan benefit, which covers [type of coverage]. Vacation time for this position is [#] weeks, with a limit of 10 sick days per year.

If you accept this offer, you must provide a signed acceptance, include a copy of two documents as proof of identity and return it to us on[date].

Congratulations on this opportunity! We are eagerly anticipating your arrival at[Company Name]! If you have any questions, do not hesitate to reach out to me.

[Your Name]
[Your Title]

How do I write an offer letter?

The employer must specify the job title of the employee they are hiring when writing an offer letter. The next step is to describe the job description and work schedule of the employee in detail. The third step is to include a brief leave policy and details about different leaves available for them.

Besides this, it is essential to include a breakdown of the salary, financial benefits, and other employee benefits. It is also necessary to explain the privacy policies they need to follow while working with your organization.

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