How to Write a Job Offer Letter in 2023

Congratulations! After evaluating hundreds of resumes and holding various interviews, you've found the right candidate for the role. With the perfect candidate ready to join your company, it's time to go forward with your job offer.

The recruitment process doesn't end with a verbal offer. You'll still need to present the candidate with a written job offer letter to officiate the agreement.

Once signed, the job offer letter becomes legally binding, so it should be carefully worded as accurately as possible to avoid disputes and legal issues.

In this article, we'll explain what a job offer letter is, outline its key components, and share a few templates you can use to create a perfect offer letter today. Let's dig in!

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What Is a Job Offer Letter?

A job offer letter, or an employment offer letter, is a document sent by an employer to a potential candidate, formally inviting them to join the company. It's simply a letter sent to offer a position of employment to a candidate.

A job offer letter details the employment terms and conditions, compensation, duties and responsibilities, starting date, and other pertinent information. The candidate will receive the job offer letter by email or in writing, depending on the company's policy.

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What to Include in a Job Offer Letter

Listed below are the items to include in your offer letter. There's no standard format, so you can choose to rearrange the sections as you deem fit.

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Company Logo

Print the offer letter on a company's letterhead, with the company's name and logo. This makes your letter look professional and legit, encouraging the candidate to read it thoroughly.

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Date and Contact Information

The date, candidate's name, and address should be included on the offer letter. Tell the candidate whom to call or email if they have questions about the job or want to discuss the offer. Encouraging an open dialog helps avoid misunderstandings down the line.

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Job Details

The job details must be included, written in clear and concise language that the applicant understands. This includes the job's title, a brief description of the candidate's duties and responsibilities, and who they'll report to.

This section should also specify if it's a full-time or part-time job and provide other job-relevant information, such as the possibility of remote working and corporate travel. Clearly define the working hours and the job's location.

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Salary

Salary information must be included in the job offer letter.

Explain how much the employee will make per hour, month, or year, how often they'll get paid, and the mode of payment. It should also state other forms of compensation the candidate will receive, like commissions, stock options, etc.

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Job Benefits

It's important to mention all the benefits/perks the candidate would receive upon accepting the offer. This information can help the candidates on the fence decide to accept the job. Some benefits that attract job applicants include:

• Remote work options
• Medical insurance coverage
• Paid leave
• Retirement/pension plans
• Stock option plans

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Contingencies

Contingencies refer to processes the candidate must fulfil after accepting the offer letter. Failure to fulfil some of the requirements can lead to retraction of the offer.

Common contingencies in offer letters include medical checks, background checks, and signing confidential agreements. Non-citizens may be required to provide proof that they're legally authorized to work in the given country.

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Expiration Date

Most job offers come with an expiration date. The employer sets the date within which the candidate must respond. If they decline the offer, it gives you time to contact other candidates.

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Closing Line

This includes the details of how the candidate can reach the employer if they have questions about the job offer.  

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Sample Job Offer Letter Template

A formal job offer letter typically includes all the sections discussed above. It also includes a section for the candidate to sign to accept the job offer and return it to the company for confirmation. Here's a sample template of a formal job offer letter.

[Company Logo]

MM/DD/YYYY

Candidate's Full Name

Candidate's Address

Dear [candidate's name]

We are pleased to offer you the [Job title] position at [Company name]!

We believe that your knowledge, skills, and experience are an excellent match for the [job title] in our company. In this role, you'll be expected to [outline duties and responsibilities].

We propose a prospective start date of [starting data]. You'll report to [immediate manager/supervisor] at [job location]. This is a [full-time, part-time, contract] position. And your expected hours of work are [days of the week and number of hours]

For this position, the starting salary is [amount] that will be paid on a [weekly, bi-weekly, monthly] basis through [check, bank deposit, PayPal, etc.]. This will start from [date].

As an employee of the company, you'll also be entitled to [list other benefits offered by the company, including medical health insurance, gym membership, paid leave, etc.]

Should you accept this offer, please sign and return the document on or before [date]. If you have any questions, feel free to contact us at [phone number] or reach us via email at [email address]. We're excited to have you on our team and look forward to working with you.

With kind regards

[Your signature]

[Full name]

[Job title]

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Is a Job Offer Letter Legally Binding?

Before accepting a job offer letter, the applicant has no ties or obligations to the company. However, a job offer letter includes a legally binding employment contract. Therefore, a candidate is legally bound to the company after:

• Accepting the employment offer letter
• Signing the employment contract – the signature confirms that the candidate has read and agrees to all the employment terms and conditions
• Becoming an employee – The candidate is now a part of the employer's team and is responsible for performing the duties as per the employment contract

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The employment contract allows everything in the offer letter to be legally binding. That means the company can be held liable for unlawful dismissal.

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In Conclusion

An employment offer letter is a critical part of the recruitment process. It forms a binding contract and details all the relevant information about the job, including start date, duties and responsibilities, and salary and benefits. If you're struggling to write a formal job offer letter, our template will help you create the perfect job offer email in no time.