What is an Offer Letter?

A job offer letter is a formal written document sent by employers to a candidate selected to fill a particular position. It contains critical information like roles and responsibilities, salary details and start date.

If the candidate is satisfied with the terms detailed in the offer letter, she will sign it and send it back as an acceptance of the job.

If the offer letter contains the following details, it can be considered a legally binding contract:

  • A clear and definite offer of employment
  • A clear acceptance of the offer
  • An exchange of value; salary being exchange for work done

In addition to these essential elements, an offer letter in India must also be in writing and signed by both parties.

Here’s how you can create and manage employee letters on RazorpayX Payroll, using best-in-class templates crafted by our team of experts.
What is included in a job offer letter? 

Employers must ensure that the following critical information is included in the job offer letter:

Job title

The potential employee’s position at work and level of responsibilities after getting selected.

Job description

A written narrative that lists down the core responsibilities, general tasks, and other associated duties.

Starting date

The scheduled date when the new hire is expected to join the company and start working.

Work schedule

The expected volume of work – hours per day or days per week, that the employee must put in at the job.

Reporting structure

The inter-relationship between various authorities within a company. In other words, it describes the hierarchical chain of command – who reports to whom.

Salary

The compensation paid to the employees in exchange for their service. An employer needs to factor in various components of salary while calculating it in India. Typically, it includes base salary, wages, commissions, incentives, etc.

Read more: Salary structure, components, and calculation

Calculating salary is tedious. Unless you use RazorpayX Payroll! Sign up and use the CTC calculator and salary preview tool to generate a salary structure and calculate employee-in-hand salary with only a few details.

Employee benefits

The indirect and non-cash components paid to the employees over and above their salaries.

Privacy policies

A section of the offer letter that discloses how the employer manages customer data and how the prospective employee has to follow it.

Termination conditions

The clause or provision for terminating an employee’s work within an organisation.

Paid time off

The number of days per year that can be used for vacation, sick leave or personal days.

Job Offer Letter Samples

Standard Job Offer Letter Template

This simple, customizable template can be used for any position. Since this is the first official communication your candidate will receive from you, it’s important to add all important details to the offer letter.

 

Email subject line: Congratulations! You have been selected for the role of <job title> at <company name>

Dear <name>,

We are pleased to offer you the position of <title> at <company>. We were thoroughly impressed by your qualifications, experience and interview performance, and we believe you will make a valuable addition to our team.

Job details

  • Job title:
  • Department:
  • Reporting to:
  • Start date:
  • Compensation:

Benefits & perks

  • <list of benefits like health insurance, etc>

Please indicate your acceptance of this offer by signing and returning a copy of this letter by <acceptance deadline>. You can also reach out to <HR POC> at <HR email> or <HR phone number> for any clarification or assistance.

We are excited to have you join our team and look forward to your contributions.

Sincerely,

<HR Manager’s name>
<HR Title>
<Contact information>

standard offer letter template 

Editable Standard Offer Letter Template

Executive Job Offer Letter Template

This is the perfect template for leadership positions. When offering a job to your ideal candidate for an executive position, make sure to use this template and change/add as many details as needed.

 

Email subject line: Congratulations! You have been selected for the role of [Job Title] at [Company Name].

Dear [Candidate’s Full Name],

It is with great pleasure that we extend an offer for the position of [Job Title] at [Company Name]. Your impressive track record and leadership experience align perfectly with our company’s vision and goals.

Job Details:

  • Job Title: [Job Title]
  • Department: [Department]
  • Reporting to: [Supervisor/Manager Name]
  • Start Date: [Start Date]
  • Compensation: [Salary or Compensation Details]
  • Signing Bonus: [Signing Bonus Details]

Benefits and Perks:

  • [List of Executive Benefits and Perks]

Please signify your acceptance of this offer by signing and returning a copy of this letter by [Acceptance Deadline]. Feel free to contact [HR Contact Name] at [HR Contact Email] or [HR Contact Phone Number] for any queries or assistance.

We eagerly anticipate your leadership contributions to our organization.

Warm Regards,

[HR Director’s Name]

[HR Director’s Title]

[Contact Information]

executive offer letter

Editable Executive Offer Letter Template

Internship Offer Letter Template

This is the template to customise when offering an internship to the ideal candidate. Interns are enthusiastic and fresh – this template is the perfect communication to get your candidate onboard.

Email subject line: Congratulations! You have been selected for the role of [Job Title] at [Company Name].

Dear [Candidate’s Full Name],

It is with great pleasure that we extend an offer for the position of [Job Title] at [Company Name]. Your impressive track record and leadership experience align perfectly with our company’s vision and goals.

Job Details:

  • Job Title: [Job Title]
  • Department: [Department]
  • Reporting to: [Supervisor/Manager Name]
  • Start Date: [Start Date]
  • Compensation: [Salary or Compensation Details]
  • Signing Bonus: [Signing Bonus Details]

Benefits and Perks:

  • [List of Executive Benefits and Perks]

Please signify your acceptance of this offer by signing and returning a copy of this letter by [Acceptance Deadline]. Feel free to contact [HR Contact Name] at [HR Contact Email] or [HR Contact Phone Number] for any queries or assistance.

We eagerly anticipate your leadership contributions to our organization.

Warm Regards,

[HR Director’s Name]

[HR Director’s Title]

[Contact Information]

intership offer letter template

Editable Internship Offer Letter Template

Remote Job Offer Letter Template

Work-from-home and remote jobs became popular after the COVID-19 pandemic – remote jobs offer flexibility and allow you to hire top talent from around the world. This is a customizable template for you to send to your candidate.

Email subject line: Congratulations! You have been selected for the role of [Job Title] at [Company Name].

Dear [Candidate’s Full Name],

We are thrilled to offer you the remote position of [Job Title] at [Company Name]. Your skills and expertise make you an excellent fit for our team, and we are excited to have you contribute to our company’s success remotely.

Job Details:

  • Job Title: [Job Title]
  • Department: [Department]
  • Reporting to: [Supervisor/Manager Name]
  • Start Date: [Start Date]
  • Compensation: [Salary or Compensation Details]

Remote Work Setup:

  • [Remote Work Policy and Equipment Details]

Please confirm your acceptance of this offer by signing and returning a copy of this letter by [Acceptance Deadline]. For any inquiries or assistance, please contact [HR Contact Name] at [HR Contact Email] or [HR Contact Phone Number].

We look forward to your valuable contributions as a remote team member.

Best Regards,

[HR Manager’s Name]

[HR Manager’s Title]

[Contact Information]

remote offer letter

Editable Internship Offer Letter Template

Part-time Job Offer Letter Template

Part-time employees offer businesses the flexibility to staff up during busy periods, while also providing workers with the opportunity to balance work with other commitments. When offering a job to a part-timer, you can use this template. Make sure to add any details you feel necessary.

Email subject line: Congratulations! You have been selected for the role of [Job Title] at [Company Name].

Dear [Candidate’s Full Name],

We are pleased to extend an offer for the part-time [Job Title] position at [Company Name]. Your skills and availability make you an excellent candidate to contribute to our team in a part-time capacity.

Job Details:

  • Job Title: [Job Title]
  • Department: [Department]

  • Reporting to: [Supervisor/Manager Name]

  • Start Date: [Start Date]
  • Compensation: [Hourly Rate or Compensation Details]

Part-Time Schedule:

  • [Part-Time Schedule Details]

Please indicate your acceptance of this offer by signing and returning a copy of this letter by [Acceptance Deadline]. Should you have any questions or require assistance, please reach out to [HR Contact Name] at [HR Contact Email] or [HR Contact Phone Number].

We are excited to have you join us in this part-time role.

Warm Regards,

[HR Manager’s Name]

[HR Manager’s Title]

[Contact Information]

part time job offer template

Editable Part Time Offer Letter Template

Part time to Full Time Job Offer Letter Template

Use this template when converting a part time employee into a full time position.

Email subject line: Congratulations! You have been selected for the role of [Job Title] at [Company Name].

Dear [Candidate’s Full Name],

We are pleased to extend an offer for the full-time position of [Job Title] at [Company Name]. We were thoroughly impressed with your performance and skills in a part-time capacity and look forward to your contributions as a full-time employee.

Job Details:

  • Job Title: [Job Title]
  • Department: [Department]
  • Reporting to: [Supervisor/Manager Name]
  • Start Date: [Start Date]
  • Compensation: [Hourly Rate or Compensation Details]

Please indicate your acceptance of this offer by signing and returning a copy of this letter by [Acceptance Deadline]. Should you have any questions or require assistance, please reach out to [HR Contact Name] at [HR Contact Email] or [HR Contact Phone Number].

We are excited to have you join us in this full-time role.

Warm Regards,

[HR Manager’s Name]

[HR Manager’s Title]

[Contact Information]

part time to full time offer letter template

Editable Part Time to Full Time Offer Letter Template

General Job Offer Letter Template

Dear [Employee_Name],

Congratulations! We are pleased to confirm that you have been selected to work for [Company_Name]. We are delighted to make you the following job offer:

The position we are offering you is that of [Job_Title] with an annual cost to company of 330000. This position reports to [Manager_Name].

We would like you to start work on [Employee_Joining_Date]. Please report to [Manager_Name] for documentation and orientation. If this date is not acceptable, please contact me immediately. On joining, you will be invited to our HR tool (XPayroll) in which you may be required to upload your documents.

Please sign the enclosed copy of this letter and return it to me by [Acceptance_Last_Date] to indicate your acceptance of this offer.

We are confident you will be able to make a significant contribution to the success of [Company_Name] and look forward to working with you.

Sincerely,

[HR_Name] [Company_Name]

offer letter sample format

offer letter formatYou can download the above offer letter for free in Word (editable) or PDF format from below. Both versions contain the offer letter format with salary structure.

Download Offer Letter in Word for Free

Download Offer Letter in PDF for Free

Tips for Making Job Offer to Candidate

The rate of drop off after receiving an offer letter is reported to be as high as 80% in some industries. High drop off rates result in waste of time, money and resources – this is why it is so important to give your chosen candidate a good overall hiring experience and top it off with the perfect job offer.

Here are some tips to follow while preparing to offer the job to your chosen candidate so you don’t fall victim to high drop off rates.

  • Be Prompt: Move quickly with your offer once you’ve chosen your candidate. Great candidates can get snatched up by other companies if you wait.
  • Express Enthusiasm: Let the candidate know you’re excited about them joining the team.
  • Clearly Communicate the Offer: Provide a written document outlining the position details, salary, benefits, start date, and anything else relevant.
  • Be Competitive: Research fair compensation for the role and location. While salary is important, consider the total benefits package too.
  • Highlight the Opportunity: Go beyond just the job duties. Explain growth potential, company culture, and exciting perks.
  • Be Open to Negotiation: Be prepared to discuss the offer if the candidate has questions or requests.
  • Follow Up: After the initial offer, check in with the candidate to see if they have any questions and reiterate your enthusiasm for their potential hire.

Automated Offer Letters

RazorpayX Payroll’s automatic offer letter generation feature is a game-changer for businesses of all sizes. It takes the hassle out of creating offer letters, saving you time and resources.

With RazorpayX Payroll, you can generate personalized offer letters in seconds, with just a few clicks.

What’s more, you can use the in-built salary preview tool and CTC calculator to calculate the take-home salary and CTC quickly. All with a few clicks. RazorpayX Payroll automates employee payments and compliance filings like TDS, PF, ESI, PT, and more.

 

Read more:

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What is Payroll

Payroll Process

Payroll Management

HRIS

Leave Attendance Management

Attendance Management System

HR Software

HR Letters

Welcome Letter

Promotion Letter

Experience Letter

Appraisal Letter

Resignation Acceptance Letter

FAQs 

1. How long does HR take to issue a job offer letter?

The time taken depends on several factors. Offer letters containing specific and complicated employee benefits may take a little longer to prepare, possibly a few weeks. Overall, the time taken to roll out offer letters post-selection falls in the range of a few days to two weeks.

2. What is the job offer acceptance rate?

It is a metric that depicts how many of the rolled-out offer letters are accepted by the selected candidates. The acceptance rate is computed by dividing the number of accepted offers by the total number of job offers rolled out. The higher the acceptance rate, the better it is for the employer.

3. Is an offer letter legally binding?

Once a job offer is accepted, it becomes a legal contract between the employer and employee. The employee has the right to the job; however, the employer can revoke the offer under certain conditions mentioned in the Indian Contract Act, 1872. The offer letter may or may not have a fine print or clause in which the employer has explicitly mentioned the consequences of not joining the company.

4. How long is an offer letter valid?

It is usually mentioned in the offer letter or the HR/employer will tell the candidate over the phone or email. Usually, a week is given to candidates to think about the offer.

5. What is the difference between an offer letter and a joining letter?

An offer letter is the first formal document sent to the candidate after clearing all selection rounds. However, it can be turned down by a candidate or passed onto a different candidate by the employer. A joining letter or appointment letter is the final confirmation that the candidate has accepted the offer. Also, the latter is more detailed regarding the role and position.

What is a job offer letter template?

A job offer letter template is a pre-written document that outlines the key details of a job offer. It can be customized to include specific information about the position, salary, benefits, and start date. These templates help companies streamline the offer process and ensure all essential terms are clearly communicated to the candidate.

When should an offer letter be sent?

An offer letter should be sent promptly after you've chosen your top candidate. This shows your enthusiasm and minimizes the risk of them losing interest due to waiting or considering other offers.

Can an offer letter be negotiated?

Yes, an offer letter can be negotiated, It's actually quite common for candidates to discuss the terms, especially salary and benefits. Be prepared to have a conversation and be open to finding a mutually agreeable compensation package.

Author

Content specialist at RazorpayX Payroll.

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