Offer Letter: Essentials, Sample Templates & Legal Checklist

Got a job offer and need to turn it into a solid offer letter? You’re not alone. An offer letter is the bridge between a verbal promise and a binding agreement, and getting it right can save you headaches later. Below you’ll find the must‑have sections, legal dos and don’ts, and a quick template you can copy‑paste.

What Goes Into an Offer Letter?

First off, keep it clear and concise. Start with the basics: the company name, your name, and the position you’re being hired for. Then add the start date, work location, and reporting manager. Most candidates also want to see the salary figure, payment frequency, and any bonus structure. If there are benefits like health insurance, paid leave, or retirement plans, list them in plain language – no jargon.

Next, outline the employment type. Is it a permanent role, a fixed‑term contract, or a probationary period? If there’s a probation period, state its length and what will happen afterward. Don’t forget the working hours, overtime policy, and any shift details if they apply.

Finally, include a section on confidentiality or non‑disclosure, especially for roles that handle sensitive data. If the company requires you to sign a non‑compete, spell out the scope and duration. A simple “Please sign and return by [date] to confirm your acceptance” wraps things up nicely.

Legal Must‑Haves & Common Pitfalls

Even though an offer letter isn’t always a full employment contract, it still carries legal weight. Missing or vague language can lead to disputes. Make sure every promise you write matches what was discussed verbally – no surprise salary cuts or benefit changes later.

Be aware of local labor laws. In India, for example, you must mention the basic wage, any allowances, and the total gross salary as per the Payment of Wages Act. If the role is subject to the Industrial Employment (Standing Orders) Act, include a reference to the relevant standing orders.

A common mistake is forgetting the termination clause. While you don’t need a full notice period description in a simple offer letter, you should at least note that the employment will be governed by the company’s policies, which the employee can review after joining.

Proofread for consistency. Numbers written in words should match the digits (e.g., "₹5,00,000 (Five Lakh Rupees)"). Typos in dates or names can cause confusion and even make the document look unprofessional.

Once you’ve covered all sections, attach any annexes – like a detailed benefits brochure or a copy of the employee handbook – and ask the candidate to acknowledge receipt. A scanned signature or a typed name with a date works for most situations.

Below is a quick template you can adapt. Replace the brackets with your specific details, and you’re good to go:

[Company Letterhead]
Date: [DD/MM/YYYY]

Dear [Candidate Name],

We are pleased to offer you the position of [Job Title] at [Company Name]. Your start date will be [Start Date] at our [Location] office. You will report to [Supervisor Name].

Compensation:
- Base Salary: ₹[Amount] per month (gross)
- Bonus: [Details if any]
- Benefits: Health insurance, paid leave, [Other Benefits]

Employment Type: [Permanent/Contract/Probation – X months]
Working Hours: [X] hours per week, [Shift Details if applicable]

Confidentiality: You agree to keep all company information confidential during and after employment.

Please sign and return this letter by [Acceptance Deadline] to confirm your acceptance.

Sincerely,
[HR Manager Name]
[Title]
[Company Contact]

That’s it – a straightforward offer letter that covers all the bases. Use it, tweak it, and you’ll have a professional document that protects both you and the new hire.