An offer letter is generally a letter offering employment for full or part-time work. It can be made to be binding or non-binding, depending on the terms. After both parties sign, the letter is converted to a formal agreement.

An offer letter is sent by a hiring party when seeking to fill a position.

By Type (9)

1. Acceptance – Made by an individual when accepting a job or role.
2. Business Purchase – To propose the acquisition of a company.
3. Counter-Offer – Made by an individual seeking employment to counter what an employer has offered.
4. Employment Offer – To offer any part or full-time work.
5. Interview Offer – To request an in-person or virtual meeting with a potential candidate.
6. Rejection – To reject an offer for employment.
7. Real Estate – To make an offer on a property that converts to a legally binding contract after both parties sign.
8. Services – For a company offering their services to obtain new customers.
9. Settlement Offer Letter – Proposes a solution to an ongoing dispute.

Offer Letter vs Contract

An offer letter outlines the terms of employment, a purchase, or a project that includes pricing and labor requirements. It is commonly binding to the offeror only (the person making the offer). If agreed to by the recipient, an offer letter should be converted to a legally binding agreement.

A contract is a legally binding document between two parties that outlines the terms of an agreement. It provides the full scope of work, including payment details, job responsibilities, and grounds for termination.

How to Write an Offer Letter  (7 Steps)

Writing an offer letter is an important step in the hiring process, and it’s important to make sure the letter is professional and clearly written. Here are some tips on how to write a job letter:

1. Start with a Greeting

In a polite manner, it is recommended to greet the candidate by name and thank them for their interest in the position. Showing gratitude for to the person is the first step in the employer-employee relationship.

2. Include the Job Details

It should include details about the position, such as the title, start date, and main responsibilities. Other items such as pay, schedule, and benefits should be mentioned if available.

3. Mention Contingencies

If there are any contingencies to the offer, they should be clearly defined in the letter. This may include a background check, consumer report, or drug testing.

4. Show Enthusiasm

It is important to express enthusiasm about the position and how the organization could benefit from the individual’s talents. Any mission statements or goals are written in this section.

5. Provide Contact Information

Include the hiring manager’s contact details and company information. At the very least, a phone number and e-mail should be mentioned.

6. Close with a Call-to-Action

Give clear instructions on how the candidate can respond to the offer. If there is a deadline or expiration date, it should be included as part of this section.

7. Personalize and Review

The letter should include personalization, such as adding the organization’s logo, border, or any other effects to give a personal and professional look.

Sample