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Offer Letter

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HR Glossary

Offer Letter

What is an Offer Letter?

An offer letter is a formal letter from the employer to the employee. It is a letter indicating that the employee has been selected for the job. 

It is the first formal letter between an employer and employee that shows that the employer has offered employment to the employee.

When is Offer Letter Given?

This letter is issued by the employer after the candidate has been selected for the job following an interview.

It is issued post the interview of a candidate when the employer has selected the candidate.

However, contrary to the appointment letter, the candidate has the choice to accept or reject the offer letter 

Importance of Offer Letter

It is the first official document between the employer and employee. This letter consists of all the important details of a job such as joining date, salary, etc. It acts as a binding legal contract between the employer and employee

Since it is a job agreement between both parties, it needs to be as clear as possible. It should disclose everything and anything that needs to be disclosed beforehand. Full disclosure of all the information avoids any disputes in the future and acts as a common binding agreement between the parties.

Both the employer and the employee are exposed to risks related to disputes without a formal letter. It allows both parties to clear everything about the job beforehand. 

Difference Between Offer Letter And Appointment Letter

Difference-Between-Offer-Letter-And-Appointment-Letter-

An offer letter and an appointment letter are often confused as the same. However, there lies a thin line between them.

An offer letter is issued to the candidate showing that you want to offer the position to the candidate. However, the candidate has the right to accept or reject your offer letter. 

An appointment letter on the other hand is offered after the candidate has accepted the job offer. It provides a detailed employment contract highlighting every detail of the job. It is offered to indicate that the particular person has been appointed for that specific job. 

Format of an Offer Letter

Here is a list of items to be included- 

  • Job title
  • Location
  • Salary
  • Company policies
  • Joining date
  • Job description
  • Employee benefits
  • Terms and conditions
  1. Introduce yourself and address the candidate.
  2. Provide all the relevant information regarding the job.
  3. Ask the candidate to provide his answer within the stipulated period of time. 

Here is a sample format of an offer letter, to help you understand it better.

Sample offer letter

This was a sample format to help you understand it in a bit more detailed way.

We hope this blog helps you in drafting offer letters for your company. For more such interesting blogs,

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