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Offer Letter
I need an offer letter for a new hire in a marketing role, with a starting salary of CAD 50,000, including details on health benefits, a 3-month probationary period with a 2-week notice, and eligibility for performance bonuses after the first year.
What is an Offer Letter?
An Offer Letter is a formal document employers send to job candidates outlining the key terms of potential employment. It typically details the position, salary, start date, benefits, and basic working conditions they're proposing - serving as the first step in establishing the employment relationship under Canadian labour laws.
While not as detailed as a full employment contract, a properly written Offer Letter creates important legal obligations once signed. Many Canadian employers use these letters to comply with provincial employment standards while giving candidates clear information about their role. The letter becomes binding when the candidate accepts it by signing and returning it.
When should you use an Offer Letter?
Use an Offer Letter when you've selected your top job candidate and need to formally present employment terms before finalizing the hire. This document becomes especially important for roles with complex compensation packages, senior positions, or when hiring across different Canadian provinces with varying employment standards.
Many employers send Offer Letters right after making a verbal offer and completing reference checks. Moving quickly at this stage helps secure talented candidates while protecting both parties through clear documentation of agreed terms. The letter sets expectations early and reduces the risk of misunderstandings about salary, benefits, work conditions, and start dates.
What are the different types of Offer Letter?
- Job Offer Agreement: Standard employment offer detailing salary, benefits, and core working conditions for permanent positions
- Internship Offer Letter: Tailored for temporary training positions with learning objectives and limited duration
- Business Offer Letter: Used for executive or senior roles with complex compensation and performance terms
- Counter Offer Letter: Response to employee resignation with revised terms to retain talent
- Offer Letter For House: Real estate purchase proposal outlining price and conditions
Who should typically use an Offer Letter?
- HR Managers & Recruiters: Draft and customize Offer Letters to align with company policies and provincial employment standards
- Legal Teams: Review and approve letter templates, ensuring compliance with Canadian labour laws and minimizing legal risks
- Hiring Managers: Provide role-specific details and approve final terms before letters are sent to candidates
- Job Candidates: Review, negotiate, and sign the letter to formally accept employment terms
- Company Executives: Sign letters for senior hires and oversee offer policy alignment with business strategy
- Payroll Teams: Use letter details to set up compensation and benefits in company systems
How do you write an Offer Letter?
- Position Details: Confirm exact job title, department, reporting structure, and work location
- Compensation Package: Gather salary details, bonus structure, benefits, and any stock options or special incentives
- Start Date: Confirm available start date and any probationary period requirements
- Legal Requirements: Review provincial employment standards for mandatory terms and conditions
- Company Policies: Include references to key workplace policies, confidentiality agreements, and non-compete clauses
- Approval Process: Get sign-off from HR, hiring manager, and department head before sending
- Document Generation: Use our platform to create a legally-sound Offer Letter that includes all required elements
What should be included in an Offer Letter?
- Job Details: Full position title, department, reporting structure, and work location
- Compensation Terms: Base salary, payment schedule, overtime rates, and benefits package
- Employment Status: Full-time/part-time designation, probationary period length
- Start Date: Confirmed employment commencement date and work schedule
- Confidentiality: Protection of company information and intellectual property
- Conditions: Background checks, reference verification, work permit requirements
- Termination Terms: Notice periods and conditions aligned with provincial standards
- Signature Block: Space for both employer and employee signatures with dates
- Provincial Compliance: Reference to applicable employment standards legislation
What's the difference between an Offer Letter and an Employment Letter?
An Offer Letter differs significantly from an Employment Letter in several key ways. While both documents relate to employment relationships, they serve distinct purposes and are used at different stages of the employment journey.
- Timing and Purpose: Offer Letters come before employment starts, proposing specific terms to potential new hires. Employment Letters confirm existing employment status for third parties like banks or immigration officials.
- Legal Binding: Offer Letters create contractual obligations when accepted, forming the basis of employment terms. Employment Letters simply verify current employment facts without creating new obligations.
- Content Detail: Offer Letters outline comprehensive employment terms including salary, benefits, and conditions. Employment Letters typically only state basic facts like position, tenure, and sometimes salary.
- Primary Audience: Offer Letters are for potential employees to review and accept. Employment Letters are for external organizations needing employment verification.
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