Preparing An Offer Letter

What Is An Offer Letter?

An offer letter is a document issued by a company to an individual formally inviting him or her to join the organisation as an employee to fill a specific position. Before issuing the offer letter, the individual is interviewed to ensure that he/she has the necessary qualifications to be hired.

The offer letter also serves as proof of confirmation of all agreed-upon parameters, and the employee is required to sign a copy as a sign of acceptance of the job offer.

For this reason, an offer letter will comprise various information such as job requirements or job description, salary details, joining date, company policies, prior employer confidential information/restrictions, duties, equity, bonus/commissions, and company rules and regulations.

Benefits Of an Offer Letter

• A sample offer letter will include information on employee remuneration, such as gross salary, net salary, insurance, stock options, profit-sharing ratio, leave policies, and tax deductions. It helps the employer understand his/her employment position
• A job offer letter can also be used as a reference when applying for VISAs to foreign countries
• A job offer can also be a legally binding document in case of future conflicts between the employer and the employee.

Checklist for an Offer Letter Format

• Company header
• Company name and address
• Employee’s name and address
• Employee designation
• Job description and responsibilities
• Status of employment
• Salary details
• Duration of employment agreement
• Joining date
• Documents to submitted at the time of joining
• Commitment or declaration

How to Write a Basic Offer Letter Format

• A basic offer letter format begins with the company name, logo design of the company, address of the employer/employee, and the date of correspondence
• Address the letter to the employer with the right salutation
• Clearly state the subject line of the offer letter, to indicate to the employee that the letter is a job offer
• Commence the offer letter sample by confirming that he/she has been hired along with the joining date
• In case if the employee is required to report earlier to the office to sign the contract or for other formalities, mention the date and time
• In case if there is a probation period, remember to include the total duration of the probation, as well as other information on remuneration if it affects salary during that period and thereafter
• Mention remuneration details, including tax deductions, bonuses, etc, in your offer letter.
• If the job entails travel, please make sure to mention that as well, as part of the offer letter format
• Sign off your offer letter officially, with full name, signature, organisation stamp and seal.

FAQs on Preparing An Offer Letter

Why Vakilsearch

Vakilsearch has a team of highly skilled lawyers and company secretaries with years of experience drafting an offer letter. We help you in creating the perfect offer letter as per your requirements. Our services cater to the needs of both individuals/freelancers and organisations. Our pricing is reasonable compared to other legal service providers. With us, you won’t have to worry about the process since you can keep track of the status at every stage.