Employers often send an Employment Offer Letter to express their intent to hire someone as an employee. This letter contains a summary of the key terms and conditions of a job position.

Typically, employers first offer a job to a successful candidate over the phone or in person. Once the candidate accepts the offer, the employer puts forward a written letter that contains the essential details of the position. These details include the start date, salary, and benefits.

An employer may create a contingent job offer in which they require the candidate to meet certain conditions before officially hiring them for the position. If the candidate doesn’t meet the requirements, the employer may withdraw the offer.

If the employer and candidate agree to the terms in the Employment Offer Letter, both parties can sign the contract to confirm their intention of proceeding with employment. However, having the employee sign the letter is optional.

Provide the following information to complete a job offer letter:

• Employee and employer details: name and contact information
• Job position details: job title, start date, type of employment (full-time or part-time), and term (permanent or temporary)
• Compensation: salary or wage, frequency of pay periods, allotted holiday time, and benefits plans
• Probation period: if required, specify how long (typically between one and 12 months)
• Job conditions: if applicable, specify whether the candidate must show proof of work eligibility, pass a criminal record check, provide work references, or meet other conditions

LawDepot’s Employment Offer Letter template is customised to suit your jurisdiction. For instance, our questionnaire provides tips to help you understand how much annual leave each type of employee should receive. Answer the questions to generate your custom job offer letter quickly.

Like any contract, an Employment Offer Letter becomes a legally binding agreement when certain factors are present:

• Offer and acceptance: The employer makes a job offer. The candidate accepts and signs the letter.
• Consideration: Both parties benefit from the contract. The employer gains an employee whose labour helps them reach their business goals. The employee takes a position that earns them compensation and work benefits.
• Mutuality: Both parties intend to enter a valid, enforceable work contract.
• Legality: The subject matter of the contract is lawful, meaning the job position does not violate Australian employment and labour legislation (such as the Fair Work Act).
• Capacity: Both parties have the legal ability and mental capacity to sign the contract.

An employer can take legal action against someone who signs an Employment Offer Letter but declines the job shortly after. However, the cost of a legal battle in this situation likely outweighs any restitution a court might award. Instead, it’s more likely that the candidate would damage their professional reputation, which may affect their chances of getting a job in that industry later.

If you’re a potential employee who receives multiple job offers at once, ask the employer for time (typically no more than one week) to decide before signing any documents. The Employment Offer Letter might also specify a timeline for you to either accept or decline the offer.

Employers often use job offer letters for low- to mid-level employees. This format typically suits less formal situations in which the job description and responsibilities are concise and straightforward. In contrast, employers may use an Employment Contract to offer someone a senior-level or executive position where the terms and conditions are more complex.

Once a candidate accepts a job offer, employers typically ask them to sign an Employment Contract. This document elaborates on the details of the contract, including general provisions and possible restrictive covenants (e.g., clauses for confidentiality, non-competition, or non-solicitation).

If the employer sends a contingent job offer (also known as a conditional job offer), they may later reject a candidate who doesn’t satisfy their requirements.

For instance, if a job position requires an employee to operate heavy machinery, an employer might offer someone a job on the condition that they pass a drug and alcohol screening test. The Employment Offer Letter will outline this condition and any others that the candidate must meet before securing the position. If the candidate fails the test, the employer would likely withdraw the offer.

The Employment Offer Letter may also become void if certain terms become impossible to fulfil. For example, if something happens that causes the company to lose a considerable amount of profits, the company may need to cut costs to save money. In this case, the company may not have the funds to accommodate the job position they were initially seeking to fill and would rescind the offer. However, these situations are rare. Employers don’t want to waste time and resources sending out job offers they later have to rescind.

An Employment Offer Letter provides evidence of the contractual agreement between an employer and their potential employee. It clearly outlines the terms and conditions of a job position so that both parties know what to expect.

If you’re applying for a job and only receive a verbal offer from a potential employer, you can request the offer in writing. Explain that a written job offer will help you understand the details of the position and provide you with a reasonable timeline to send your response.

Plus, if you accept the offer, you’ll have a record of the position’s terms and conditions. Refer back to this document if the terms in the Employment Contract differ greatly from the terms in the Employment Offer Letter.