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What to include in a Job Offer Letter? [14 particulars]

October 20, 2021

This article talks about what to include in a job offer letter and consists of an employment offer letter sample. 

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Acquiring and hiring skilled employees is key to achieve the company’s growth. When you think about it, many offer letters can be short and simple – they could range from being two pages, or they could reach the other end of the spectrum and have everything the company stands for and your job description. 

The hiring team usually contacts the potential employees to announce their decision and make a job offer. 

When the job offer is verbal, the manager informs the candidate and informs them they are offering the position to them. Depending on the policies present and the process of hiring a candidate – they usually receive the offer via email. 

However the job is offered, it must be confirmed via an offer letter.

There are various templates for offer letters, the short ones communicate effectively. But what’s included in a job offer letter? 

1. Position/ Title

What is their designation? This helps them to know what they are in for. The tasks, duties, and responsibilities are crucial as well – but mentioning the designation helps the employee to know how the company functions.

2. Name/ Position of Line Manager

Who are they reporting to, and what do they do? This helps to clear all the air (if they do join), they are not stuck in a fix and wondering what to do, who do they contact. It can be inferred as a ‘part-time buddy’ till things settle in and they are comfortable with the workplace. 

3. Reporting Structure

Mention the reporting structure on the offer letter, or mention that you will be briefing the candidate upon joining. 

4. Full-Time/ Part-time Schedule

The basis of employment must be mentioned. The schedule of the basis of employment must be mentioned as well – this helps the employee and employer to be in sync. 

5. Duties/ Description

Mentioning the job description and details keeps the employee informed of what they are signing up for. This will ensure the offer letter will itemise facts about the offer, outline the responsibilities, and it will highlight necessary details.

6. Equity

Some companies are in the habit of offering equity and shares to their employees, if so, they must mention the share amount. 

7. Bonus / Commission

The company must provide information of any bonus – target, amount, criteria, payment terms, etc. If there is a formal bonus or commission plan in place, the plan must be referred. The offer letter must include the incentives, compensation, and it will be awarded at the company’s sole discretion. 

8. Base Salary

The base salary must be mentioned on the offer letter to not stir any confusion. The offer letter can reference the annualized salary amount.

9. Benefits

Mention the various categories of benefits for which they will be eligible, like medical insurance, vacation, sick leave, holidays, etc. Mention how it is in the company’s discretion to modify the plan from time to time. 

10. Policies

Mention the work culture, policies, rules, regulations, standard operating procedures at the workplace. Provide them with the company handbook as well. Mention these statements in brief in the offer letter, or mention how they will be briefed once they are hired. 

11. Confidentiality 

Mention how employees are expected to sign a confidentiality agreement as a condition of employment, and it will be enclosed within the offer letter. Employees must be aware that they should never reveal sources, information and share data from one company to another without permission. The offer letter is privileged and one should treat it as such. Breaching that trust will have consequences and repercussions, which can open civil penalties.

12. Restrictions 

Prohibit the unauthorized use of confidential information of prior employers and require disclosure of any employment restrictions. 

13. Contingencies 

It is a requirement that the offer is contingent upon a background check, reference check, and satisfactory proof of the employee’s right to work in the country. 

14. Termination conditions

Mention the termination contingencies or inform them that they will be briefed upon joining. Here, divide the categories into behavioral, performance, moral, ethical, stealing or selling data, under the influence of illegal drugs, etc. Instances, situations, and conditions that could get them fired must be mentioned to ensure both parties are clear. 

The offer letter can mention benefit packages, bonus and commission programs, severance, control benefits, and changes, and tax provisions as well. 

If your question is, “what to include in a job offer letter?” The above are particulars that you must consider and implement. 

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  1. The Contract Labour (Regulation and Abolition) Act, 1970 
  2. The Payment of Bonus Act, 1965
  3. Equal Remuneration Act, 1976
  4. Workmen’s Compensation Act, 1923 
  5. Employees’ Provident Funds & Miscellaneous Provisions Act, 1952

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