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#HRGUIDE: BASICS OF AN OFFER LETTER

• An offer letter is a document that formally confirms the details of an offer of the employment. It is taken as a written proof of contract between the employee and the employer. During the time of interview, if a candidate is selected, it is mandatory for HRs to provide the candidate a document of Offer Letter.

• Some of the basic information that should be mentioned:• 1. Basic Job Information:Offer letter should contain the Title of the position,

department to work in and whom the new joinee is supposed to report to. This should also inform the employee, location of the job and when he can join the company. Also, mention if it is full time employment, or a part-time work.

• 2. Salary: How much the employers are paying the employee should be mentioned. A recommended way is to segment the salary into various components like – Basic Salary, HRA, Allowances, Bonus etc. whichever is applicable in your organisation.

• 3. Bonuses: If there is any amount that is paid as bonus, it should be mentioned. The letter must clearly say dates or approximate time period (monthly, quarterly, half yearly or yearly) distribution of bonus.

• 4. Policies: HRs are advised to mention all the relevant policies that are applicable with this job in the offer letter provided. This will keep the employee in sync with the company’s working style. It could be leave policy, working days or working hours policy, work etiquettes etc.

• General Terms and Conditions that comes with an Offer Letter:

• 1. Contract of Employment:If there is any contract between the company and the employee, it should be clearly mentioned. The letter should clearly say the period of probation (if any), notice period (if quitting the company) and any bond period (if applicable) that an employee is expected to serve. Also mention the fines an employee need to fill if not meeting these contract terms.

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