Last Updated February 13, 2024

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An Employment Offer Letter allows an employer to formally present a job opportunity to someone. Generally, it contains the key details of a job, such as a job title, start date, and payment details.

An Employment Offer Letter is also known as a:

• Job offer letter
• Offer of employment
• Employee offer letter

Employment Offer Letters can be conditional, meaning employees must pass specific criteria before getting officially hired. Our template allows employers to customise and add conditions unique to their industries.

Besides being one of the first steps in hiring an employee, an Employment Offer Letter has a variety of purposes, including the following:

• It allows you to present the most important job details
• It conveys professionalism to your new hire
• It serves as a starting point for negotiation if the selected candidate wants to discuss things like salary or vacation
• It allows employees to confirm their acceptance
• It provides you and your new hire with a written record of the initial agreed-upon employment terms

Many employers, including small businesses, use Employment Offer Letters to offer jobs to new employees before they sign Employment Contracts. The offer letter gives the employee vital information to decide whether or not they’ll accept the position.

Alternatively, some employers may use an Employment Offer Letter instead of an Employment Contract when an extensive agreement isn’t required. Employers may use offer letters in this way when:

• Less formality is desired
• The job description is less detailed
• The job responsibilities are less demanding

When creating an Employment Offer Letter for someone, the core details you should include are as follows:

• The recipient’s information, including their name and address
• The employer’s information, including its name, address, phone number, and email
• The job title for the position
• The salary or wage being offered, and the frequency of pay periods (e.g., monthly)
• The proposed start date
• Whether the position is full-time or part-time

Depending on the employer and the nature of the position, there may be additional information that you would like to include within an Employment Offer Letter. For example, you may wish to specify:

• The working hours of the position (e.g., 9 am to 5 pm, Monday to Friday)
• The number of paid holiday days offered with the job
• The location of the position (e.g., at the employer’s address or remotely)
• Whether it's a permanent or temporary job (e.g., internship)
• Whether there is a probationary period
• Whether there are any benefits offered with the job
• Whether the offer is conditional, and if so, what steps the recipient must complete

Conditions are the requirements an applicant must abide by and meet to become an employee. Here are some possible conditions an employer may outline in an offer letter:

• Completing a medical assessment
• Signing an Employment Contract
• Passing drug/alcohol screening test
• Passing a criminal record check
• Providing satisfactory work references
• Proving work eligibility

Yes, an Employment Offer Letter can be a legally binding contract when the following requirements are met:

• Offer and acceptance: The employer makes a job offer. The candidate accepts and signs the letter.
• Consideration: Both parties benefit from the contract. The employer gains an employee whose labour helps them reach their business goals. The employee takes a position that earns them compensation and work benefits.
• Mutuality: Both parties intend to enter a valid, enforceable work contract.
• Legality: The contract’s subject matter is lawful, meaning the job position does not violate employment and labour legislation in the United Kingdom.
• Capacity: Both parties have the legal ability and mental capacity to sign the contract.

An Employment Contract outlines complete employment terms, including job responsibilities, compensation, benefits, and more. On the other hand, an Employment Offer Letter is the initial step, outlining key details such as position, compensation, and starting date.

It's vital to recognize that, both of these documents can be legally binding contracts when properly signed or accepted.

Some employers may require the recipient to sign the Employment Offer Letter after receiving it to signify both their acceptance of the job offer and their agreement to satisfy any conditions, such as a criminal background check or drug test.

If the new hire meets all of the conditions, the employer may then use an Employment Contract to detail the full, binding agreement between themselves and the new hire.

During the employment period, the employer may use additional documents to manage their staff, including:

• Employee Evaluations
• Pay Rise Agreements

Rescinding an offer of employment is when an applicant accepts a job offer from their prospective employer, only to have the offer withdrawn.

A conditional job offer can be withdrawn if the person doesn’t meet the employer’s conditions. Also, if an employer and an applicant are still negotiating the job details, such as compensation, and can't agree, the employer can rescind the job offer.

In the United Kingdom, once someone has accepted an unconditional job offer, they’re in a legally binding contract with the employer. If an offer is conditional and the applicant has already accepted and met all the conditions, the employer can't just change their mind without possible consequences.

So, if an employer wants to rescind an accepted offer where all conditions have been met, they need to work with the applicant (i.e., the employee) to find a solution. A possible solution could be a buyout option.

Related documents

• Employment Contract: Establish the rights, expectations, and obligations of an employee and employer in a working relationship, including details such as compensation, work hours, job duties, and more.
• Employee Evaluation: Analyse an employee’s performance and suggest areas for improvement.
• Pay Rise Agreement: Increase an employee’s salary or wage without having to create a new contract.

Sample

Employment Offer Letter

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