Offer letter

What it is

An offer letter is the written job offer a company sends to the candidate it wants to hire. It confirms the job title, pay, start date, working hours, location and who the person will report to. It often also lists benefits and any conditions, such as passing a background check.

An offer letter is usually shorter and less detailed than an employment contract. In some countries the offer letter and the contract are separate documents, and in others the offer letter is the main written agreement. Rules vary by country, so this is general information, not legal advice.

Why it matters

The offer letter turns a verbal "we would like you to join" into something clear and written. It reduces confusion about pay, start dates and conditions, and it gives both sides a record of what was agreed.

It is also the first formal document a new hire sees. A clear, warm and well-timed offer sets the tone for preboarding and can help stop a strong candidate from accepting a different job.

How it works

Sending an offer letter usually follows a few simple steps after the final interview:

• The hiring manager and HR agree on the role, pay and start date.
• The recruiter often calls the candidate first to share the offer verbally.
• HR sends the written offer letter, usually by email, with a deadline to respond.
• The candidate signs and returns it, often with an e-signature.
• HR moves the new hire into preboarding: paperwork, equipment and a welcome message.

Example: a logistics company chooses a candidate for a warehouse supervisor role. The recruiter calls him on Monday with the offer. That afternoon he receives an offer letter with his title, hourly rate, shift pattern, start date and a note that the offer depends on a background check. He signs it online on Wednesday, and the next day he gets a welcome email with his first-week schedule from the company's preboarding software.

Best practices

• Call the candidate before sending the letter so the offer feels personal.
• Use plain language and keep the letter to one or two pages.
• State all conditions clearly, such as checks, references or work permits.
• Give a reasonable deadline to respond, usually a few days.
• Have HR or legal review your offer letter template before you use it.

Common mistakes

• Promising things in the letter that are not approved, like a bonus or remote work.
• Leaving out key details, such as the start date or pay frequency.
• Waiting too long after the final interview to send the offer.
• Going quiet after the candidate signs, so they feel forgotten before day one.

FAQ

What is the difference between an offer letter and an employment contract?

An offer letter is a short summary of the job offer. An employment contract is usually longer and covers detailed terms like notice periods, confidentiality and termination. Some companies use both, while others combine them into one document.

Is an offer letter legally binding?

It can be, depending on the wording and local law. In some places a signed offer letter can form part of the employment agreement. Rules vary by country, so check with a local employment lawyer.

What should be included in an offer letter?

Most offer letters include the job title, start date, pay, working hours, location, manager, main benefits, any conditions of the offer and a deadline to accept. Many companies also link to the employee handbook or explain what happens next.