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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.
Likewise, if it includes any guarantees, limits the employer's right to fire you, or promises you anything else, those promises may be legally binding.
A letter of employment, also known as an employment verification letter, is a document that confirms an individual's working status. Professionals may need to write these on behalf of their team members to provide financial information for third-party organizations, such as mortgage lenders and landlords.
Unfortunately, your boss is correct. An written offer of employment does not constitue a legal contrat unless it guaranteed your employment in some way (i.e. your compensation, etc.) for a specified period of time.
Can you back out of the job offer? Yes. Technically, anyone can turn down a job offer, back out of a job already started, or renege on an acceptance at any point. Most states operate with what is called at will employment. This means the employee and the employer are not in a binding contract.
How to Create an Offer Letter Without Contractual ImplicationsStep 1: Opening and Basic Information.Step 2: Job-Specific Information.Step 3: Benefits Information.Step 4: Paid Leave Information.Step 5: Terms of Employment.Step 6: At-Will Employment.Step 7: Closing.Step 8: Legal Review.
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.
Contrary to what most people think, a signed offer letter, except in very rare instances, is not a legally binding implied contract. Candidates often think that because they have signed and accepted an offer letter, they have some sort of legal right to the job.
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.
Generally, this means that when an employer makes an offer of at-will employment, the employer is free to rescind that job offer, for any reason or no reason at all, at any time, including the period after the potential employee has accepted the offer but before he or she begins work, without legal consequence.