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An offer letter is a written contract that confirms the terms of employment. It's a document that lays out what your job will be and how much you'll be paid. It might also include the benefits and other details about the job.
While an offer letter is a formal job offer, it is usually considered as an invitation to enter into a contract rather than a binding agreement. On the other hand, employment contracts are legally binding documents that establish the rights and obligations of both parties and are enforceable by law.
Jennings and Logullo said these are the essential components of an offer letter: Official job title and description. Hours. Salary, including any bonuses or commissions. Start date or targeted start date. Reporting structure. Company policies. Benefits, and whether you have multiple plan options.
An offer letter is a formal document sent to a candidate offering them a job at a company. It includes basic information about the position ? start date, title, salary, onboarding information ? and offers written confirmation that an employer is selecting the candidate for the job.
Employers give out job offer letters to candidates for the following reasons: It provides information about the job role, compensation and benefits, and other conditions of employment. It marks the beginning of a positive employment relationship. It sets the right expectations.