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Offer Letter
I need an offer letter for a marketing position, outlining a competitive salary package, including health benefits and transportation allowance, with a start date in two weeks and a requirement for a three-month probation period.
What is an Offer Letter?
An Offer Letter is the formal document employers send to job candidates outlining the terms of their potential employment. It typically includes key details like the position title, salary, benefits, work location, and start date - serving as the initial step in forming an employment relationship under Indonesian labor law.
In Indonesia's business landscape, a well-crafted Offer Letter helps protect both parties by clearly stating employment conditions before signing a more detailed employment agreement. While not as comprehensive as a formal employment contract (Perjanjian Kerja), it creates important preliminary commitments and must align with the requirements of Law No. 13 of 2003 on Manpower.
When should you use an Offer Letter?
Use an Offer Letter when you've found a promising candidate and need to formalize your intent to hire them. This document becomes especially important in Indonesian companies with multiple hiring stages, as it bridges the gap between verbal discussions and the final employment contract while protecting both parties' interests.
The timing matters - send the Offer Letter after completing background checks and negotiations but before drafting the employment agreement. This approach helps prevent misunderstandings about job terms and gives candidates clear documentation for their decision-making process. For roles requiring special permits or certifications under Indonesian labor laws, the Offer Letter can also outline these conditions.
What are the different types of Offer Letter?
- Offer Letter Form: Basic template used for standard employment offers, covering essential terms like salary, position, and start date
- Job Contract Letter: More detailed version including specific employment terms and conditions, often used for senior positions
- Business Offer Letter: Specialized format for business-to-business arrangements or contractor relationships
- Official Acceptance Letter: Formal version used in government sectors or highly regulated industries
- Job Acceptance Letter: Response template for candidates to formally accept employment terms
Who should typically use an Offer Letter?
- HR Managers: Draft and customize Offer Letters based on approved hiring terms, ensuring compliance with Indonesian labor laws
- Company Directors: Review and authorize final offers, especially for senior positions or when special terms apply
- Legal Department: Ensures offer terms align with company policies and Indonesian employment regulations
- Job Candidates: Review and consider the formal offer terms before accepting the position
- Department Heads: Provide input on role-specific requirements and terms to be included in the offer
- Recruitment Teams: Coordinate the offer process and communicate with candidates about terms and conditions
How do you write an Offer Letter?
- Position Details: Confirm exact job title, department, reporting structure, and work location
- Compensation Package: Gather approved salary, benefits, allowances, and any performance-based incentives
- Employment Terms: Document working hours, leave policy, probation period per Indonesian labor laws
- Required Documents: List necessary certificates, permits, or qualifications the candidate must provide
- Start Date: Confirm available start date and any pre-employment requirements
- Internal Approvals: Secure necessary sign-offs from department head, HR, and finance
- Template Selection: Use our platform's Indonesian-compliant Offer Letter template to ensure all legal requirements are met
What should be included in an Offer Letter?
- Company Information: Full legal name, address, and registration number of the employer
- Position Details: Job title, department, work location, and reporting structure
- Compensation Terms: Base salary, allowances, and benefits as per Indonesian labor regulations
- Employment Status: Clear indication of permanent, contract, or probationary position
- Working Hours: Standard hours, overtime policies, and work schedule
- Start Date: Proposed commencement date and any conditions precedent
- Validity Period: Timeframe for candidate to accept the offer
- Confidentiality Clause: Terms protecting company information during recruitment
- Signature Block: Space for authorized company representative and candidate signatures
What's the difference between an Offer Letter and an Employment Letter?
While an Offer Letter and an Employment Letter may seem similar, they serve distinct purposes in Indonesian employment law. An Offer Letter is the initial proposal of employment terms, while an Employment Letter confirms an existing employment relationship.
- Timing and Purpose: Offer Letters come before employment begins, outlining proposed terms. Employment Letters are issued after hiring, documenting current employment status
- Legal Weight: Offer Letters are preliminary agreements that can be negotiated. Employment Letters are formal confirmations of established employment terms
- Content Scope: Offer Letters focus on proposed salary, benefits, and conditions. Employment Letters typically verify employment details for third parties
- Duration of Validity: Offer Letters have an acceptance deadline and expire if not accepted. Employment Letters remain valid as long as the employment continues
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