A job offer letter is rolling out a formal letter to the selected candidature for employment in the company. They send it through e-mail, after all the stages of the interview. It contains details of work such as job profile, salary stack up, and period of probation, etc.
It is upon the candidate to accept the offer; often, candidates attend interviews to get a couple of offers in hand. They consider taking it after reviewing various factors such as the job description, location, pay package, etc.
If the candidate agrees to accept the offer, he is asked to send it back after signing each page of the offer letter. It is important to note that this document is the letter stating that you will be filling the vacant position in the company.
Employee contract is different from the offer letter. Once you sign and accept employee contract, you are legally bound to the company policies. But, it is not the case with an offer letter; you are not legally bound unless you fill the position by joining the company. The employer rolling out the offer must mention that the offer letter is for the information.
What does a job offer letter consist of?
The job offer letter is a formal document sent out by an employer which consists of following -
Personal Details
This contains the name, address of the candidate who has been selected to fill a role in the company. The structure of the same will be in a letter format addressed to the candidate.
Job Role
It will have the job role and description of the position. It starts with the job title, reporting location, reporting manager or the team. It also consists of a brief about the roles and duties of the candidate.
Salary Details
It must have the salary details such as Salary, Housing Allowance (if any), Dearness Allowance, Travel Allowance, deductions such as income tax, professional tax. At the end of the salary break up, gross pay and net salary (take home) will be mentioned. Compensation such as performance-based incentives, the yearly bonus is mentioned in the offer letter to allow the candidate to understand the monetary benefits and accept the offer.
Benefits
The offer letter would also have the other benefits mentioned, such as rewards, recognitions, insurance, etc. they are not provided at length on the offer letter, it is mentioned to get the gist of the benefits and attract the candidate to accept the offer.
Closing Date for Offer
The job offer is subject to a limited period, which means the employee has to either accept the offer within the stipulated period or let it go. The end date mentioned so that the candidate can make the decision faster. This allows the company to onboard the candidate if he accepts the offer. If not, the employer can look for someone else to fill the role without any time-lapse.
Ending with Welcome Note:
At the end of the job letter, once again, the employer welcomes him aboard with anticipation that the candidate will accept the offer and join them soon.
It is often exciting to sign and accept the offer without reading it thoroughly. Yet, the employer expects the candidate to read through the pages of the offer letter and other terms and conditions. This allows the candidates to clear their doubts and avoid confusion later.
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