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An employment contract typically includes the following elements: Duration of employment, if applicable. Salary or wages. General job responsibilities. Work schedule. Benefits. Confidentiality. Non-compete agreement. Severance pay, if applicable.
An offer letter is a short congratulatory note extending a job offer, while an employment contract is an extended written agreement setting out the terms and conditions of employment. Both an offer letter and an employment contract are legal documents, discussed below.
Employment contracts are legally binding, while employment offer letters are not. Job offer letters include "at-will" statements. Employment contracts include specific stipulations for employment conditions, differing from "at-will."
The risk of rescinding an offer is ultimately the risk of being sued, and anyone can sue. An ?At Will? employer can be sued before or after the person has accepted the offered job. Always verify information through valid channels such as background checks, reference checks and explanations from the candidate.
Offer letters aren't considered legal documents because these documents just propose a position to potential candidates. Many employers like to use offer letters because they are a way for them to avoid future hiring risks. As a potential candidate, you have no obligation to a certain company.
If you receive an offer letter after an interview, it's important to read through all of its details before accepting or declining the job. Once you've signed and returned your acceptance form, it's legally binding!
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.
Although rescinding a job offer is legal in most cases, a potential employee could consider legal action against a company if they can prove they've suffered economic or emotional harm as a result of the termination.