Offer letter formats vary based on several factors. Here, we provide you with a basic format that can be modified based on the job requirements and company policies.
An offer letter or a letter of offer for employment is provided to an employee upon her/his selection for a particular position within an organization. How an offer letter is written depends on the company policy or the position it is being drafted for. However, there is a basic or standard offer letter format that most organizations follow, and this format is what has been explained here.
An offer letter contains details regarding the verbal discussion that has ensued between the management and the candidate, and is a formal document that binds both parties to some rules, terms, and policies. An offer letter is provided only after a candidate as verbally agreed to take up the position. Until this letter is signed by both parties, the acceptance of the position is considered provisional.
How to Write an Offer Letter
As mentioned earlier, the manner in which an offer letter is written depends largely on the organization it is being written by, along with the description of the position. All these details are included in the terms and conditions stated in the letter. For instance, if a job requires an employee to be traveling for a long time period, then the terms will include the reimbursement of these travel expenses. Some jobs require a candidate to move from their current city to the city where the organization is based. Again, the offer letter will state that adequate arrangements will be made for the stay of the employee, based on the position. Since there are vast differences in the way an offer letter is written, here we give you a basic sample of an offer letter which can be modified to suit your requirement.
Sub: Letter of Offer for Employment
It is my pleasure to extend the following offer of employment to you on behalf of Name of Organization. You have been offered the position of designation with effect from Date of Joining.
You will be given a consolidated salary of $XXXX per month for the first three months of employment. The gross salary is subject to deduction of taxes and other withholdings as per the company and government policy. After a three month probation you will be entitled to a performance-based incentive, policies regarding which may be subject to change at any point in time.
You are entitled to additional benefits provided by the company that include health insurance, dental insurance, and disability insurance. Your contribution to these will be determined on an annual basis.
Transition expenses and those related to the position that are borne by you will be duly reimbursed by the company on a monthly basis, subject to provision of adequate supporting proof of the same.
We trust that the information and supporting documents you have provided us are true, based on which you have received this offer for employment. Should there be any discrepancy in this information, kindly update it before you sign and return the offer letter. The company has the right to review and revoke this offer of employment should any discrepancy be discovered in the future.
By signing this offer letter you are agreeing to the enclosed terms and conditions of employment with our organization. This offer is in effect for seven business days.
For the Company: Name and Signature
Candidate Name and Signature:
An offer letter is usually drafted by the human resources department in coordination with the legal department (if any) to clearly state the terms and conditions under which employment is being offered. Based on the aforementioned format, you may draft an appropriate letter yourself.