Employment Letter / Offer Letter

Employment Letter / Offer Letter

Are you looking for an Employment Letter or Offer Letter for your Startup? It could be really difficult if you don’t have an HR Department in your company. A known fact is that most of the Startups don’t have an HR department, they don’t even have a recruiter or human resource person with them. Therefore, it is important for the founders to have the offer letter drafted by the professionals.

Having an offer letter has its own advantages like employee benefits which include disability, medical, dental, and vision insurance; 401K; tuition reimbursement; stock options and profit-sharing; and vacation and sick time. But if you don’t have an offer letter it can become problematic for you in the future.

People often get confused between an offer letter and an employment letter or employment agreement. Whether you are a business owner searching for insight about offer letters and employment contracts or you an employee receiving the documents it’s essential for all parties involved to understand the importance of each document as well as what sets them apart.

What is an offer letter?

An offer letter is a form of communication that expresses interest in a particular candidate and it indicates that a business is offering a position to a prospective employee. An offer letter is a short-form document that contains the conditions of employment that were discussed during the interview and job offer process. Offer letters are considered legal documents and can be used to resolve any disputes that might come up relating to employment terms once they are signed by both parties.

What does an offer letter include?

An offer letter includes:

  • Usually offered to lower-level employees
  • Salary and pay schedule
  • Start date
  • Employee benefits
  • Basic job requirements
  • Expresses hiring intentions
  • Outlines general expectations

What is an Employment Agreement?

An employment agreement is much more detailed and it provides some degree of assurance that the job will last or that the employee will know when the end is nearing. And it is decided on the basis of the terms and conditions of many employment agreements.

What does an employment agreement include?

  • The notice period for terminating the working relationship
  • Equity options
  • Job description
  • Confidentiality clauses
  • Noncompete clauses