Offer Letter for Employees: HR Guidelines and Employee’s FAQ

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After the effort of going through sending resumes and CVs, attending interviews and finally here comes the offer! An offer letter from the desired company could provide a great sense of relief for the candidate on the receiving side. On the other hand, the human resource department is responsible for drafting an offer letter for employees as a follow-up of the initial verbal offer.

In this article, we have listed a few guidelines for the HR when drafting offer letters for employees, as well as some frequently asked questions regarding offer letters.

What is an offer letter?

An offer letter is a formal document for the best candidate from the recruitment process, serving the purpose of offering them a job at a company. Normally it is sent after an informal agreement made verbally or via phone, in contingency or before a reference check. However, an offer letter for potential employees does not mark the beginning of employment.

The main purpose of an offer letter is to provide candidate information regarding the offered job position, its main terms, conditions of the offer, and details that could help candidates decide if they were to accept the job offer.

Core Components of Offer Letter for Employees

Generally, an offer letter for employees should consist of an overview of job description and details regarding the offered job position. There is no particular rule on how an offer letter should be written, however, a well-written one would be helpful for both the company and the candidate to establish common ground before the actual employment.

Here is a list of core components that we suppose HR should be including in an offer letter:

  1. Company Logo

With the company’s logo and letterhead, an offer letter for employees should convey authenticity and professionalism.

  1. Addressee Details

One thing HR definitely would not want to get it wrong – the correspondent of this particular offer letter. Double, if not triple-check these before sending it out: candidate’s full name, address and contact details.

  1. Job Details

After greetings and congratulate the candidate on the job offer, dive right into the job details. Firstly, have a clear and bold formal position title of the job the company is offering. Then included things such as a summary of roles and responsibilities associated with the job position. It is also important to specify the nature of placement – whether it is full-time or part-time, and its required working hours on a weekly and monthly basis. It is also good to include the name of their immediate superior (i.e. manager or supervisor) and how the candidate will fit into the team’s workflow if any. Last but not least, the model of work should be included to provide clarification on the work setting, in which the position is fixed, remote, or hybrid.

  1. Important Dates

Numbers – it is not the fun part of anything but make sure to cross check the important dates: date when job offer is delivered, expected starting date, and offer expiration date if any. Adequate amount of interval should be given between the offer and decision day, with chances for both parties to be in touch when clarification is needed.

  1. Main Terms, Compensation, and Benefits

The offer letter for employees should include a brief summary of the company’s term, general benefits and compensation scheme for the employees. This allows the candidate to have a basic understanding on the perks of joining the company.

For instance, details about compensation and yearly bonuses could be listed in a few sentences. Also work as an encouragement for the candidate to join the company, give them a list of benefits offered by the company, which could include the insurance coverage, pension saving scheme (i.e. contribution to EPF and SOSCO), total of entitled leaves, and employee discount if any.

  1. Disclaimer and RSVP

Before closing the letter, do include a simple disclaimer on the nature of the job offer letter, which is informational and not legally binding. Formal and standard language is preferred to prevent any contractual implications. If there is a need to keep the offer letter content confidential to other parties, this is a good place to write it down.

Should the offer letter be accepted or rejected by the candidate, make sure to include the company’s contact information for them to revert to. To seal the deal, include a response slip for the candidate to sign on and date the offer should they choose to take the offer.

FAQ about Offer Letter for Employees

We have gathered a few questions regarding offer letters that might be asked by candidates. Read on to ensure you know the answers!

Q1: Is salary negotiation possible after the offer letter?

Yes – even with verbal agreement on the wage, negotiation is still possible after an offer letter is being issued. However, this procedure shall be approached with extra caution and clear justification for either party to have such adjustment before employment.

Q2: Should offer letters be kept confidential?

The common practice is to include a section within the offer letter to clarify on confidentiality requirements if any. Employee confidentiality agreements and noncompete clauses could be included as well, and signing the offer letter would indicate their acknowledgment and consent to comply.

Q3: Can the company revoke an offer letter?

Yes – employers have the right to withdraw a job offer at any time until it is accepted. Moreover, the company has no obligation to provide an explanation for revoking an offer. However, once the offer has been signed by the candidate, there is a legal-binding contract of employment between the company and the candidate which legal issues would arise if company revokes the offer without legitimate reason.

Q4: Can an offer letter be used as proof of income in Malaysia?

No – as much as offer letters consist of the job details and salary, it is not a legally-binding contract with legal liability. Therefore it is not possible to use an offer letter for any official application in Malaysia.

Conclusion

A good written offer letter for employees helps to mark the milestone of successful recruitment. GreatDay HR is a human resource information software (HRIS) that helps recruitment processes to be a streamline, seamless, and efficient procedure. Consult today to get more information on how GreatDay HR could be of help!

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