Offer Letter template

Free employment offer letter template

When bringing on a new hire, an offer letter formalizes the job offer and details the key employment terms. An employment  offer letter is an official contract that details the  terms to the selected candidate.  Having a clear offer letter helps set expectations and serves as a reference document for both the employer and employee.

Docusign’s free, editable offer letter template allows you to fill in details like job title, start date, salary, benefits, and conditions of employment. You can edit everything online, download it for sending to the new hire, and store it freely in your Docusign account so  you can print the letter out to have a hard copy whenever you need it.

Get started with our standard offer letter template for free and help both parties clearly understand the terms before the employee accepts the position. 

What is an offer letter?

An offer letter is a formal document extended by an employer to a prospective employee, detailing the terms and conditions of a job offer. It typically includes information such as the job title, start date, salary, benefits, and other relevant employment details. The purpose of an offer letter is to formally confirm the job offer and provide the candidate with all necessary information to make an informed decision about accepting the position.

What’s the difference between an offer letter and an employment contract?

While both an offer letter and an employment contract outline the terms of employment, their differences lie in their legal enforceability and comprehensiveness. An offer letter is typically a less formal document that extends a job offer and summarizes the basic terms, such as salary, start date, and benefits. It often serves as a preliminary agreement. While acceptance of an offer can indicate intent to hire, it might not be legally enforceable.

An employment contract, on the other hand, is a more formal and legally enforceable agreement that details all aspects of the employment relationship. It covers comprehensive terms including, but not limited to, job duties, compensation structure (salary, bonuses, equity), benefits, termination clauses, intellectual property rights, confidentiality agreements, non-compete clauses, dispute resolution procedures, and conditions for amendment. Employment contracts are designed to protect the interests of both the employer and the employee and are generally more difficult to alter or terminate without specific conditions being met.

What does an offer letter include?

These are the basic requirements for a good employment offer letter:

• Position details: Clearly specify the job title and a brief description of responsibilities to set expectations.

• Compensation: State the salary or wage, payment schedule, and any other forms of compensation, such as bonuses or commissions.

• Employment type: Indicate whether the position is full-time or part-time, and exempt or non-exempt under the Fair Labor Standards Act.

• Start date: Provide the anticipated start date, contingent on any pre-employment requirements.

• At-will employment clause: Include an at-will employment statement to affirm the right to terminate employment at any time.

• Benefits information: Outline available benefits such as health insurance, retirement plans, and paid time off.

• Conditions of employment: Specify any contingencies, such as background checks and eligibility to work documentation.

Additional (optional) components of an offer letter

• Company culture and values: A brief description to align the candidate with the company ethos.

• Non-compete or confidentiality agreements: Mention if separate agreements will be required.

• Relocation assistance: If applicable, detail any assistance provided for relocating.

• Probationary period: Information about any initial evaluation period, if applicable.