A verbal “you’re hired!” feels great — until there’s a disagreement about pay, start date, or what was promised. An offer letter puts the deal in writing, sets a professional tone, and (done right) preserves your at-will flexibility. Here’s how to write one.
What to include
- Job title and reporting line. Who the employee reports to.
- Start date and work location/schedule.
- Compensation. Pay rate or salary, pay frequency, and payday. Keep bonus language general unless you’ve finalized the plan.
- At-will statement. “Your employment is at will, meaning either you or the company may terminate it at any time, with or without cause or notice.” This is the most important sentence in the letter. (More on why: at-will employment explained.)
- Contingencies. “This offer is contingent on successful completion of a background check and employment verification” — if applicable, and only where your state allows them. Check reference check questions when you get to that stage.
- Benefits summary. A high-level overview with a pointer to full plan documents — not the fine print itself.
- Acceptance deadline. Give candidates a clear date to sign and return the letter.
What to leave out
- Promises of job security. “Long-term opportunity,” “we’ll take care of you,” “permanent position” — all of these can undermine at-will status.
- Detailed bonus formulas you haven’t finalized. Vague promises about bonuses become disputes later.
- Anything you can’t deliver. If the start date might move, say so.
Sample offer letter language
Dear [Name],
We’re pleased to offer you the position of [Job Title], reporting to [Manager Name], starting [Date] at our [Location] office. Your starting pay will be [Rate] paid [weekly/biweekly]. This is a [full-time/part-time] position scheduled for [hours].
Your employment with [Company] is at will, meaning either you or the company may end it at any time, with or without cause or notice. This letter is not a contract or a guarantee of employment for any specific period.
This offer is contingent on [background check/employment verification].
Please sign and return this letter by [Date] to accept.
Welcome aboard — we’re excited to have you.
Sincerely,
[Name, Title]
Offer letter vs. employment contract
An offer letter summarizes the offer; an employment contract creates binding obligations (often for executives or specialized roles). Most small-business hires need only the letter. If you’re hiring for a role that needs non-compete, non-solicitation, or severance terms, that’s contract territory — get an attorney.
After they accept
The offer letter kicks off onboarding, not the end of it. Next steps: new hire paperwork checklist, the employee onboarding checklist, and a 90-day plan to set them up to succeed.
FAQ
Is an offer letter legally binding? It can be, if it’s written like a contract. That’s exactly why the at-will language and “this is not a contract” sentence matter.
Should I include the salary in the offer letter? Yes — put the agreed compensation in writing to prevent misunderstandings (and check your state’s pay transparency laws for posting requirements).
Can I rescind an offer letter? Generally yes before acceptance, and sometimes after for legitimate reasons (failed background check, position eliminated) — but rescissions can still create legal risk, so document the reason.
General information only — not legal advice. Have an attorney review your offer letter template before use.