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Some important details about an offer letter are: It is NOT a legally binding contract. It does NOT include promises of future employment or wages. It includes an employment at-will statement.
While it's completely understandable to be thrilled (and slightly overwhelmed with relief), it's crucial to have a written offer in hand before you verbally accept a positionand yes, even if it's your dream job.
Although not required in the U.S., providing a candidate a written job offer is considered a good practice. Following up a verbal offer with a written offer will not only set expectations for the new employee, but also clarify any matters that were discussed during the interview phase.
Whereas an offer letter is unofficial (avoiding statements that promise future wages or employment), an employment contract is exactly the opposite, setting wages and length of employment in legally binding stone.
Many companies set contingencies before employment begins, like a completed background check or drug screening. Some important details about an offer letter are: It is NOT a legally binding contract. It does NOT include promises of future employment or wages.
With that, every job offer letter should include the following terms:A job title and description.Important dates.Compensation, benefits, and terms.Company policies and culture.A statement of at-will employment.An employee confidentiality agreement and noncompete clause.A list of contingencies.
Another common proof of income is a recent offer of employment on company letterhead. This is forward-looking and indicates the salary or hourly rate. Be careful: offer letters are often conditional upon things like drug tests, which the applicant may not yet have passed. Offer letters may also have expiration dates.
Once a job offer letter is accepted by the candidate, it's considered legally binding in most cases. If the letter specifically states that acceptance of the offer does not constitute a binding agreement, the document is not a legally binding contract.
In general, offer letters are less formal than employment contracts, which typically set terms and conditions of employment that are legally binding. It's also vital for employers to understand that they aren't required by federal law to send an offer letter to new hires.