Letter of Employment template

Free letter of employment template in Docusign

Docusign provides a free, editable Letter of Employment template that you can use to create a clear and legally-sound job offer letter template for candidates in Canada. Using Docusign allows you to professionalize your hiring process, ensure all critical information is included, and get the required sign-off quickly and securely.

• How to use the template: You can open the free template in your Docusign account or start a free Docusign trial to begin drafting your employment offers.

• Editing the template: The template is fully customizable, allowing you to fill in all the details, from the job title and salary to vacation and benefit terms, tailoring the employment offer letter template to the specific role and provincial requirements.

• Sending and signing the offer: Once complete, the letter can be sent electronically as a Docusign envelope to the candidate for their review and acceptance. The completed, signed letter is securely stored in your Docusign account for your records, and a copy can be downloaded or printed for both parties.

Overview

A Letter of Employment, which is often referred to as a job offer letter template in the hiring process, is a critical document that formally extends an offer of employment and forms the basis of the employment relationship. While a more comprehensive employment contract may follow, this letter establishes the essential terms like compensation, start date, and basic working conditions.

In Canada, having a well-drafted, clear employment document is vital. Although verbal offers can be binding, a written employment offer letter template removes ambiguity, sets clear expectations, and is a key tool for risk management, helping to protect both the employer and the employee. A clear document, especially one detailing termination and other key conditions, is essential for staying compliant with ever-changing provincial and territorial labour standards.

Who it’s for

This template job offer letter template is designed for any employer in Canada looking to hire new staff, whether for a small business, a growing corporation, or a non-profit organization. It is particularly useful for:

• Canadian small and medium enterprises (SMEs): Providing a professional and consistent approach to hiring new employees.

• HR departments: Standardizing the offer process to ensure compliance and clarity across all new hires.

• Managers or recruiters: Quickly generating a detailed and formal letter of employment to secure a candidate's acceptance.

• Employers hiring foreign nationals: To provide the required documentation for immigration processes.

Purpose of the agreement

The primary purpose of the letter of employment is to formalize a verbal offer, clarify the terms of the job, and obtain the candidate's written acceptance. Its goal is to create a legally recognized employment agreement that clearly defines the rights and obligations of both the employer and the employee. Specific key purposes include:

1. Setting expectations: It clearly outlines the job title, duties, reporting structure, and compensation to avoid future misunderstandings.

2. Legal compliance and protection: It establishes a written record of the terms of employment, which is crucial for compliance with provincial employment standards legislation and can limit common law liabilities, especially concerning termination.

3. Securing the hire: It acts as a professional and formal invitation, allowing the candidate to review and accept the offer by a specific date.

Key clauses

A comprehensive employment offer letter template should clearly address the following essential terms to be compliant with Canadian employment practices:

• Position and duties: The official job title and a list of key duties and responsibilities, which should also include a clause allowing for other duties to be assigned.

• Start date and location: The official commencement date of employment and the primary workplace address.

• Salary and compensation: The annual base salary, payable frequency (e.g., bi-weekly), and a note about mandatory deductions for taxes, CPP, and EI.

• Hours of work: Whether the position is full-time or part-time, and the regular weekly hours.

• Probationary period: A clause outlining the probationary period, typically for a period up to three to six months in Canada, during which employment may be terminated on the basis of suitability, often without notice or pay in lieu of notice (subject to provincial minimums).

• Vacation and benefits: The amount of paid vacation and eligibility for the company's group benefits plan, including any waiting period.

• Confidentiality: A requirement for the employee to sign a separate Confidentiality and Intellectual Property Agreement as a condition of employment.

• Termination: The notice period or pay in lieu of notice that the company will provide after the probationary period, in accordance with applicable provincial standards, and the minimum written notice required from the employee upon resignation.

• Entire agreement: A clause stating that the letter and its attachments constitute the complete offer and supersedes any prior verbal agreements, ensuring that the written document is the final, binding record.

• Acceptance: A clear section for the candidate's signature, acknowledging that they have read, understood, and accepted the terms of the letter of employment.