Employment Offer Letter Format

Updated on : Oct 12, 2021 - 12:34:15 PM

08 min read.

Employee offer letter is one of the most important documents at the time of employee on-boarding. It is a formal letter given by the company offering an employment to a selected candidate.

An offer letter is drafted on the letterhead of the company and is a very critical document containing important information relating to the employee’s terms of employment.

Details mentioned in the Employee Offer Letter:

Designation: It clearly states the designation of the employee in the company such as Manager, Executive, Vice President etc.
Salary details: It provides details of the monthly/annual salary at which the candidate is being hired in the company. It also provides the breakup of the salary vis a vis basic pay, allowances, PF contribution, bonus etc.
Benefits: It contains the details of benefits offered by the company in addition to the salary; for instance, their medical insurance, vacation and sick leaves, expense reimbursements etc.
Documents required at the time of joining: It also provides the list of documents required to be submitted at the time of joining. The documents are used for verification purposes such as educational certificates, salary certificates and experience certificates from the previous employers.
Notice period: Notice period is the time period served in the company after resigning from the job. The offer letter should clearly state the notice period required to be served in the company in the event of the resignation by the employee.
Probation period: Sometimes new employees are kept for a certain duration of probation mentioned in the offer letter to check their suitability for the job offered. During this time period, an employee’s performance is assessed against the job requirements. After completion of the probation period, the candidate may be retained or removed from the job depending upon his/her suitability for the job.

The candidate must read the offer letter carefully as it outlines the relevant details about the job and the company. If the candidate is satisfied with the terms of the contract and is willing to join the company, then he must accept the offer within the time period stipulated in the offer letter. This is because the company can withdraw the offer on expiry of such stipulated time period.