OFFER LETTER
OFFER LETTER
When an employee joins your organization, the initial bond forged between them and the company stems from the offer letter. As the adage goes, ‘Well begun is half done,’ thus commencing the relationship with a meticulously crafted, legally sound offer letter safeguards the interests of both parties involved
OFFER LETTER MEANS :
An offer letter is a document which is given to the candidate or the person who is selected for the particular job or the position for hiring. The letter which clearly contains the details of the posting, designation, department, salary, and benefits which entitled him to join the particular company. An offer letter which basically contains the terms and conditions of the particular job.
TYPES OF OFFER LETTER :
The offer letter are basically two types :
Written offer letter : In this type of the offer letter, the employer prints the offer letter and sends it to the candidates who are selected. It contains the employer signature and seal manually.
Email offer : In this offer letter it is sent to the emails and this is the fastest way of sending the letter to the candidates.
THINGS TO NOTE FOR OFFER LETTER :
The following things which improve the quality of a good offer letter to the person or the selected candidate. Those are
- The letter should be in formal communication and it must be professional.
- Before sending the offer letter, should make clear about the hiring of the candidates for the particular postings.
- The offer letter should cover all the necessary information regarding the job.
- The letter should not be confusing, no ambiguous words are used and terms and conditions should be clear.
- The letter should easily approach the person to get the offer of the company and provide the contract information in the offer letter.
BENEFITS OF AN OFFER LETTER :
Advantages of an offer letter for an employee :
- Clarity : An offer letter gives a clear overview about the job which is offered to the employee. It includes the type of work, benefits, salary, and responsibility of the candidate who is selected for the job. It’s a kind of formal letter offered by the company for the particular business.
- Legal protection : The letter which contains the legal aspects such as the terms and conditions and the consequences of the terminations in detail.
Advantages of an offer letter for an employer :
- Clarity : The offer letter which is basically sent by the employer of the company should note the following details in the offer letter. It should contain all the requirements of the employer for the letter offered. However the employee signs the contract , he should accept all the requirements and the conditions.
- Legal protection : The offer letter should act as the contract when the employee signs the letter which contains all the terms and conditions of the job offered. The employee should follow the agreement. If in case the employee quotes the job after a few months the legality should protect the employer business.
WHETHER THE OFFER LETTER AND APPOINTMENT LETTER ARE SAME :
An offer letter is used to offer the job to the selected candidate with the terms and conditions about the posting and the company. But the appointment letter is differ from the offer letter in which basically an appointment letter contains the candidate who is appointed for the job which is offered. The specified date for joining a job with an appointment letter when they accept the terms and conditions of the company or the role. The offer letter is the first step which offers the job with the terms and conditions. If the person accepts the offer by the company or the business by signing the contract or accepting the offer letter. The appointment letter should be sent for the person. For him to join the job within the specified period. Basically the offer letter only offers the proposal and the appointment letter should deal with the particular job assigned to the candidate with the confirmation.
LEGALITY OF THE OFFER LETTER :
An Offer, in legal terms means the willingness of the one party to enter into the contract. The offer letter is not legally valid until the person accepts the letter by signing. The customised offer letter is legally enforceable by the law as per the Contract law.
If the offer may not be accepted by the party. The offer letter has no legality and may not be enforceable by the law as per the contract act. That both parties should be necessary to accept the offer for entering into the contract.
The offer and acceptance is essential for the legality of the offer letter as per the contract act.
COMMON MISTAKES BY THE EMPLOYEE :
The following common mistakes by the employee while signing the offer letter by the company or for the business are,
- They never understand the terms and conditions of the offer letter when they are in the excitement of the job offered and before understanding the T&C, they signed the offer.
- It is the legal document which is enforceable by law so the mistakenly signed offer letter should be enforceable.
- Importantly the terms and conditions should be clearly understood before signing the offer letter.
COMMON MISTAKES BY THE EMPLOYER
In an offer letter it should mentioned the following details :
The employer should make certain common mistakes while sending the offer letter to the employee. The following mistakes are :
- The employers make the offer letter from the samples and the ready-made templates, which is not suitable for every situation.
- The employers use ambiguous and different terms which are incapable of being understood by the employee.
- The terms and conditions should vary from the role and the employer can choose the appropriate conditions in the offer letter for the particular business or the job.
THE GENERAL DETAILS SHOULD INCLUDED IN THE OFFER LETTER :
In an offer letter it should mentioned the following details :
Designation : The offer letter should clearly state the designation of the employee in the company such as Manager, executive and the role of employee.
Salary details : The salary details are the main thing that should provide the details of the monthly or the annual salary for the candidates and it also contains the bonus, basic pay, provident fund and other benefits.
Benefits : The benefits which contain the basic pay such as the insurance, medical benefits, sick leave and special holidays which are offered by the company.
Probation period : The probation period is like a watching period of the newly joined employee’s performance in the job. After the completion of the probation period the employee may be rejected based on the performance of the sustainability of the job.
Notice period : The notice period is the time period served in the company that the offer letter should clearly state the details of such period. The notice period may vary from two weeks to two months. It’s good to mention the notice period in the offer letter.
Date of commencement : The date of commencement is the date which employee or the offered person comes to join in the company or in the contract within the specified time period. If the time period is expired the contact or the offer letter should expire itself.
Once the offer letter is signed by the candidate. They will need to stay in the job for the rest of the mentioned time period in the company. So before entering into the contract the party should accept all the terms and conditions which are mentioned for the job offered.
OFFER LETTER WRITING FROM LE INTELLIGENSIA :
At Le Intelligensia, we can help you create a unique and personalised offer letter for your company. Our legal experts will draft according to your requirements. We do all types of drafting from personal to corporate.
FAQ
FAQ ON OFFER LETTER:
1. WHAT DO YOU MEAN BY THE OFFER LETTER ?
An offer letter is a document which is given to the candidate or the person who is selected for the particular job or the position for hiring. The letter which clearly contains the details of the posting, designation, department, salary, and benefits which entitled him to join the particular company. An offer letter which basically contains the terms and conditions of the particular job.
2. WHAT IS THE LEGALITY OF THE OFFER LETTER ?
An Offer, in legal terms means the willingness of the one party to enter into the contract. The offer letter is not legally valid until the person accepts the letter by signing. The customised offer letter is legally enforceable by the law as per the Contract law.
If the offer may not be accepted by the party. The offer letter has no legality and may not be enforceable by the law as per the contract act. That both parties should be necessary to accept the offer for entering into the contract.
3. WHETHER THE OFFER LETTER AND APPOINTMENT LETTER ARE SAME ?
An offer letter is used to offer the job to the selected candidate with the terms and conditions about the posting and the company. But the appointment letter is differ from the offer letter in which basically the candidate is appointed for the job which is offered when they accept the terms and conditions of the company or the role.
The offer letter is the first step which offers the job with the terms and conditions. If the person accepts the offer by the company or the business by signing the contract or accepting the offer letter. The next step is to appoint the person. The appointment letter should be sent for the person.
4. WHAT DETAILS SHOULD BE INCLUDED IN THE OFFER LETTER ?
The letter confirms the details of the job offer, including the following
- Designation
- Date of commencement
- Salary and benefits
- Probationary period
- Notice Period
5. WHAT ARE THE THINGS TO NOTE FOR OFFER LETTER ?
The following things which improve the quality of a good offer letter to the person or the selected candidate. Those are :
- The letter should be in formal communication and it must be professional.
- Before sending the offer letter, should make clear about the hiring of the candidates for the particular postings.
- The offer letter should cover all the necessary information regarding the job.
- The letter should not be confusing, no ambiguous words are used and terms and conditions should be clear.
- The letter should easily approach the person to get the offer of the company and provide the contract information in the offer letter.
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