When you've found the perfect person to offer a job to, you want to make sure to do it in the correct way. Here are two job offer letter templates your business can use to offer jobs to new hires.
So you've done the hard part by finding the perfect hire, but how does one offer that perfect candidate the job? By sending them an offer letter, of course. Sure, you can first call or email the candidate to tell them the good news, but make sure you're following that up with a formal job offer letter that includes all of the details of the offer of employment.
Figuring out what all to include in a job offer letter is the hard part, so we thought we could make your life a little easier by creating two separate templates you can use when writing up a job offer.
The two templates we'll go over are: 1. A General Job Offer Template, and 2. A Formal Job Offer Template.
Disclaimer: The following offer letter recommendations should only be used as guidelines. Please only select the portions that apply to your company. Neither the author nor loophire.com will assume legal liability for the accuracy, completeness or usefulness of any information provided in whole or in part within this article
A General Job Offer Template
Email Subject Line: [Company_name] Job Offer / Job Offer – [Company_name]
Dear [Candidate_first_name],
We all really enjoyed meeting you and getting to know you throughout the hiring process. We are very impressed with your background and would like to formally offer you the position of [Job_Title] at [company_name].
This is a [full/part] time position [working days and hours]. You will be reporting to the head of the [Department_name] department. [If applicable: Please note that [Company_name] is an at-will employer. This means that either you or [company_name] are free to end the employment relationship at any time, with or without notice or cause.]
We will be offering you an annual gross salary of [$X] and [bonus programs, if applicable]. And here is a break down for your benefits:
- [Use bullet points to highlight the benefits your company offers]
- [e., health and insurance plan, 401k, etc.]
- [amount of vacation days per year]
[optional: I am attaching a letter with more details about your compensation plan.]
Your expected start date is [date.] You will be asked to sign a contract of [mention agreements, i.e., confidentiality, nondisclosure, noncompete, etc.] at the beginning of your employment. [This is also where you would put the contact duration]
We would like to have your response by [date.] in the meantime, please feel free to reach out to me or [manager_name] via email or phone on [provide contact info], if you have any questions
We are all looking forward to having you on our team.
Best regards,
[your name, then signature underneath]
Formal Job Offer Template
Email Subject Line: [Company_name] Job Offer / Job Offer – [Company_name]
Dear [Candidate_Name],
We’re delighted to extend this offer of employment for the position of [Job_title] with [Company_name]. Please review this summary of terms and conditions for your anticipated employment with us.
If you accept this offer, your start date will be [date], and you would report to [Manager_name].
Please look over the terms and conditions of your employment on the following pages, should you accept this offer. We would like to have your response by [date]. In the meantime, please feel free to reach out to me or [Manager_name] via email or phone at [contact details], if you have any questions.
We are all looking forward to having you on our team!
Best regards,
[Your name]
[Signature]
Next Page: [Attachment template/descriptions]
Table of Contents:
- Position
- Cash Compensation
- Bonus (or commission) potential
- Employee benefits
- Privacy and Confidentiality Agreements
- Termination Conditions
- Interpretation, amendment, and enforcement
Position
Job Title
Your title will be [job_title], and you will report to [manager_name] who is the [manager_job_title].
Working Schedule
This is a [full/part] time position requiring approximately [X hours] per week. Your regular weekly schedule will be [days/times].
Employment Relationship
Employment with [company_name] is for no specific period of time. Your employment with the [company_name] will be “at will,” meaning that either you or the company may terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may have been made to you are superseded by this letter agreement. This is the full and complete agreement between you and [company_name] on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the [company_name] (other than you.)
Cash Compensation
Salary
The [company_name] will pay you a starting salary at the rate of [$Gross_Annual_Salary] per year, payable in accordance with the company’s standard payroll schedule, beginning [start date] and you will receive your first paycheck on [date]. This salary will be subject to adjustment pursuant to the company’s employee compensation policies.
Tax Withholding
All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.
Tax Advice
You are encouraged to obtain your own tax advice regarding your compensation from [company_name]. You agree that the company does not have a duty to design its compensation policies in a manner that minimized your tax liabilities and you will not make any claim against the [company_name] or its Board of Directors related to tax liabilities arising from your compensation.
Bonus (or commission) Potential
In addition, you will be eligible to be considered for an incentive bonus for each fiscal year of [company_name]. The bonus (if any) will be awarded based on objective or subjective criteria established by the Chief Executive Officer and approved by the Board of Directors. Your target bonus will be equal to [percent]% of your annual base salary. Any bonus for the fiscal year in which your employment begins will be prorated, based on the number of days you are employed by [company_name] during that fiscal year. Any bonus for a fiscal year will be paid within [number] months after the close of that fiscal year, but only if you are still employed by [company_name] at the time of payment. The determinations of the Board of Directors will respect to your bonus will be final and binding.
Employee Benefits
Vacation Policy
You will be eligible for [number] days of paid vacation leave per year. Paid time off is additional to sick days, bank holidays, and days that the company does not operate.
Private Health and Dental Insurance Plan
As all [company_name] employees, you will be eligible for the private health and dental insurance plan we provide. Specific terms and conditions may change upon vendor’s decision.
Stock Options
Subject to the approval of the Company’s Board of Directors or its Compensation Committee and following the adoption by the Company of an equity incentive plan, you will be granted an option to purchase [number] shares of the Common Stock of the Company or of its parent (the “Option.”) The exercise price per share of the Option will be determined by the Board of Directors or the Compensation Committee when the Option is granted. The Option will be subject to the terms and conditions applicable to options granted under the Company’s Stock Plan (as adopted, the “Plan”), as described in the Plan and the applicable Stock Option Agreement. You will vest in 25% of the Option shares after 12 months of continuous service, and the balance will vest in equal monthly installments over the next 36 months of continuous service, as described in the applicable Stock Option Agreement.
Privacy and Confidentiality Agreements
Privacy Agreement
You are required to observe and uphold all of [company_name’s] privacy policies and procedures as implemented or varied from time to time. Collection, storage, access to and dissemination of employee personal information will be in accordance with privacy legislation.
Conflict of Interest Policy
While you are employed at [company_name], you will not engage in any other employment, consulting or other business activity (whether full time or part time) that would create a conflict of interest with [company_name]. By signing this letter of agreement, you confirm that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for [company_name].
Proprietary Information and Inventions Agreement
Like all [company_name] employees, you will be required, as a condition of your employment, to sign [company_name]’s standard Proprietary Information and Inventions Agreement.
Termination Conditions
The [company_name] reserves the right to terminate employment of any employee for just cause at any time without notice and without payment in lieu of notice. The Company will be entitled to terminate your employment for any reason other than for just cause, upon providing to you such minimum notice as required by law.
Interpretation, Amendment, and Enforcement
This letter agreement supersedes and replaces any prior agreements, representations or understandings (whether written, oral, implied or otherwise) between you and the Company and constitute the complete agreement between you and the Company regarding the subject matter set forth herein. This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company.
You may indicate your agreement with these terms and accept this offer by signing and dating this agreement by [date the offer expires]. Upon your acceptance of this employment offer, [Company_name] will provide you with the necessary paperwork and instructions.
Sincerely,
[Sender_Name]
Collect Signatures Below.
If you'd like a downloadable version of each checklist, you can get them here.