Offer Letter

Bringing on a new employee? Let us help with an offer letter that clearly communicates terms of employment to prospective employees. Let’s get started.

What is an Offer Letter and what should it include?

An Offer Letter is a document given to a potential hire that outlines the terms of employment before they officially start working. It typically includes the job description, salary, benefits, work schedule, and starting date. It can (and should) also be designed and written in such a way to connote company culture and maintain consistent company branding.

Many clients often come to us asking for an employment agreement, when what they really need is an offer letter. One of the most important features of an offer letter is that it will clarify that the employment offered is “at will,” or in other words, it could change at any time.

A good offer letter is very short, but will also cover key terms such as confidentiality agreements and any non-compete or non-solicit restrictions. (We strongly suggest pairing an offer letter with an assignment of IP agreement.) All of the above are highly regulated areas of law, which is why we strongly suggest reaching out and letting us provide you with a strong form offer letter that you can use over and over in your business.

Why is a well-drafted Offer Letter important?

A well-drafted Offer Letter ensures that both the employer and the potential employee have clear, mutual understanding of the employment terms. This clarity prevents future disputes and sets a professional tone for the employment relationship. It also legally binds both parties to the agreed terms, providing a reference point for future concerns.

Also, importantly, it clarifies “at-will” employment, which is the most important legal point of an offer letter. We often have clients referring back to the offer letter when they need to let someone go or give them an improvement plan, so it’s very important for ongoing HR needs to have a good form in place.

How can an Offer Letter protect my business?

An Offer Letter protects your business by legally documenting the terms of employment offers made to candidates. This can include salary agreements, job responsibilities, and conditions that might prevent misunderstandings or legal disputes in the future. It’s a crucial tool for HR compliance and risk management.

Another extremely important protection of an offer letter is that a good one will be used in conjunction with a confidentiality and assignment of IP agreement. This is highly important for companies where an employee will have access to confidential information such as code or customer lists, and even more so for employees who will be writing content, design or code for a company. The best onboarding process will have a strong offer letter and assignment of IP together at the beginning. Get in touch with us to get your forms now.

Should an Offer Letter be signed by both parties?

It is not always legally necessary for Offer Letters to be signed by both parties, but we suggest it. Having signatures can affirm acceptance and mutual agreement to the terms laid out.

This practice can help solidify the commitments made by both the employer and the new employee, ensuring both understand and agree to the terms.
Importantly, as stated above, the confidentiality and assignment of IP is an important companion to the offer letter, and that should absolutely be signed by both parties.