When a person is finally selected for a particular job, the employer will then give him or her an offer letter usually containing the designation, salary package, benefits, and entitlements, as well as the rules and regulations of the organization. The job offer only means that the company is extending an invitation to the qualified candidate to join them; however, the person is not obliged to accept the offer. Should the potential employee accept the offer, he or she will be asked to officially join the company through a job appointment letter.
If you are a business owner or an employer seeking guidance on how to write an offer letter for your qualified candidates, you have come to the right place. Below are some templates for offer letter samples that you can download and use or serve as a reference if you need to create a more personalized one for your business. If the need to use these templates is inevitable, the details on these samples can be changed according to your preferences and needs. Take a tour through these templates and find what you’re looking for.
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What’s in an Offer Letter?
By definition, an offer letter is a legally binding contract of employment given to successful job interview candidates. These letters consist of an invitation to a certain position as part of the company as well as the terms and conditions discussed and negotiated during the job interview.
It outlines all these details according to the most important parts of the offer. Most offer letters usually include statements regarding
- the designated position,
- a brief summary of the job description,
- compensation and employee benefits,
- date in which you will be expected to start,
- your immediate supervisor or who you should report to, and
- the basic rules and regulations of the company.
The information above also serves as a legal basis to protect you and your employee in case of disputes which are related to compensation, benefits, and special agreements. It is also important to know that an offer letter is not the final nail in the coffin.
Unlike an employment contract letter, either party can revoke the offer when certain circumstances are deemed unsatisfactory, either by the employer or the employee. When the potential employee agreed and signed the offer letter, all the terms and conditions stated in the letter are all carried out from his or her first day of work until another offer for a new position or task is given.
What More Is There in an Offer Letter?
Although offer letters need to be sufficient enough for all the necessary details that should be included, you can also include the following items with brief statements in your offer letter:
- Stock options
- At-will employment
- Termination grounds
- Propriety agreements
- Privacy and confidentiality agreements
- Salary deductions
- Tax matters
The information mentioned above can be fully discussed in details in the work agreement letter given after the potential employee signs the offer letter. Also, the employee contract is the right place for this information.
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Why Do You Need an Offer Letter?
Offer letters are given by employers to potential employees during the job process for various reasons. Some of the most typical reasons for the existence of a job offer are discussed below.
- The standard information needed for a job position is provided. Unlike verbal offers, all the necessary information for presenting a job or services for other types of offers are presented in an offer letter. It ensures that any misunderstanding and miscommunication is avoided since all the required details are stipulated in the offer.
- The offer letter secures employment conditions. Having a written document such as an offer letter signed by the successful candidate also ensures that the specific task expected and output required from the prospective employee are well understood as well as the corresponding rate for the job given. It indicates the conditions agreed upon during the interview.
- The terms and conditions in the letter set the right expectations. Aside from securing the employment terms and conditions, an offer letter also contains information that sets the right expectations from the company and the employee. Whether you’re the employee or the employer, an offer letter avoids anyone to promise more than what he or she can deliver.
- The binding contract serves as a legal document. Once the offer letter is signed by both parties, it is considered a legal document that can be used in court during legal disputes, especially the ones regarding compensation, benefits, or even job requirements. Therefore, it is necessary to specify these types of information in the letter accurately and clearly.
- The written agreement can be a start of a positive relationship. Being able to receive a job offer from a company means that the company recognizes the candidate’s skills and what they can bring to the company, making anyone feel confident about themselves. In turn, employers are rewarded with great performance and loyalty by these employees.
The Contents of an Offer Letter
Offer letters can vary depending on the nature of the job or industry and the purpose in which it is written. However, there are basic components that you should include in your letter, no matter what type it is or for what purpose it is for. The following are the basic contents of an offer letter:
- Job description. The first part of the letter should describe the job being offered. A title is not sufficient enough especially if you have a unique one or the job requires additional tasks. It is always best to indicate all the type of activities required from the position as well as its limits.
- Salary and compensation. There is no offer letter that does not state the amount of compensation for the job as it the main purpose of a job offer. The letter should also include the frequency of and method of payment to be used, such as by check or direct deposit. If your company offers bonuses or stock options, it should also be stated clearly and in full in the offer letter.
- Benefits. In addition to the salary and compensation, benefits provided and covered by the company such as dental, health, and/or other types of insurance should also be stated in the offer letter. Although these benefits and other information will still be discussed in further detail later on, it will help entice the potential employee to accept the offer.
- Dates and times. It is necessary for an offer letter to require a response. In case you want the letter signed off and returned immediately, you should state it in your letter. It should also state the start date of employment, the time duration of the daily operation, the length of the probationary period, and expectations concerning hours of work per week explicitly.
- Other relevant documents. Some companies require new employees to sign other documents, such as nonconfidentiality or noncompete agreements. These documents are usually part of the contract, which is signed after the job is accepted, but you can attach them to the offer.
You may also want to see some templates for Business Administration Agreements while you’re here.
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Where and How You Can Use These Offer Letters
Offer letters are not just applicable to employment, although it is the most common area where offer letters are used. Let us examine some and other types of offer letter samples that you can find on this page and on our website.
- Job Offer Letter. Perhaps the most popular type of offer letters are letters that offer jobs or employment. As defined previously, a job or employment offer letter invites a potential candidate for a certain position in the company. These letters can be used for any job titles.
- Real Estate Offer Letter. These types of offer letter are given to an individual who is looking for a real estate—whether a residential house or a commercial building—to buy or rent. They are given by real estate brokers to potential clients in order to present available real estate properties.
- Internship Offer Letter. Offer letters for an internship are given by companies seeking outstanding senior students from universities and colleges inviting them to practice their profession through their companies, with a possible employment after their graduation.
- Business Offer Letter. Offer letters are also given to different businesses by different businesses presenting their desire for partnerships or offering services like manufacturing, accounting, and marketing, among others. They are also called contract offer letters.
Other templates that you can also find on this page are not for offering employment or other business-related services but are used to reply to such offers and invitations. Below are some samples of letters you can use to respond to the offer letters you receive:
- Offer Acceptance Letter. If you’re the one on the receiving end of an offer letter, it is just polite and necessary to send a letter as a formal acceptance of the position and agreement to the terms and conditions regarding the employment. You may also confirm the start date of your employment in this letter.
- Offer Decline Letter. You can send a letter declining the offer given. In this letter, you can state the reasons for rejecting the offer. and although it may not be favorable to the company, express your gratitude for the privilege of having offered the job to end it on a positive note.
For more choices of offer letters, you can also check out our compilation of offer letter examples.