Purpose
This policy defines the process for issuing written offers of employment at [Organisation Name]. It ensures we communicate employment terms accurately, satisfy regulatory requirements, and formally establish and preserve the at-will employment relationship.
Working through related paperwork at the same time? See also our Form I-9 Employment Verification Procedure Template, The Ultimate Job Description Template and Offer Letter Template.
Scope
This policy applies to all employment offers at [Organisation Name]. We extend formal offers exclusively through the standard offer letter document. Verbal assurances, informal emails, and side agreements carry no legal weight and do not constitute binding employment terms.
Responsibilities
- [Role]: Approves offer letter drafts before distribution, maintains executed records, and oversees regular policy reviews.
- Hiring Managers: Provide accurate job duties and details, stay within approved compensation parameters, and avoid making verbal commitments or unapproved promises during hiring.
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Procedure
- Classify Position and Compensation Structure: Evaluate job duties against regulatory standards to assign Fair Labor Standards Act (FLSA) status as exempt or non-exempt. Express pay as an hourly rate or a pay-per-period amount. If you reference an annualized figure, state clearly that it serves as a reference point, not a guarantee of employment for any specific duration.
- Review Jurisdiction-Specific Rules: Check state and local rules regarding mandatory written wage notices, salary history inquiry bans, and background check limits before finalizing terms.
- Draft the Offer Letter: Prepare the offer letter using the standard template. Include these mandatory components:
- Position Details: Job title, reporting line, work location, schedule, and expected start date.
- Compensation and Status: Pay rate, pay schedule, FLSA classification, and references to governing bonus, commission, or equity plan documents, if applicable.
- Benefits and Leave: Summary of benefits eligibility timelines and paid time off policies. Note that official plan documents govern all benefits.
- At-Will Employment Statement: Clear language stating that employment is at will and either party may terminate it at any time, with or without cause or notice. State that only a written agreement signed by [Role] can modify at-will status.
- Contingencies: Clear preconditions for employment, including Form I-9 eligibility verification, background checks (where lawful), reference checks, required license or certification checks, and signed organizational agreements.
- Expiration and Acceptance Terms: A firm expiration date and clear instructions on how to accept and return the letter.
- Obtain Internal Approval: Submit the drafted offer letter to [Role] for review and approval before sending it to the candidate.
- Issue the Offer: Send the approved offer letter and any required ancillary agreements to the candidate.
- Manage Response: Confirm receipt of the signed acceptance before the expiration date. If you must withdraw an offer before acceptance or due to unmet contingencies, document the business justification and consult [Role].
- Complete Onboarding Records: Verify that the signed offer letter and all contingency documentation are fully executed and filed before the employee’s first day.
Records
- Store signed offer letters, job descriptions, and signed ancillary agreements in the employee’s official personnel file within [System/Location].
Review Cycle
We review this policy and its template annually, whenever organizational pay or benefit structures change significantly, or when federal, state, or local labor laws update.
Policy Owner: [Role] Next Review Due: [Date]
FAQs on the offer letter
What is an offer letter?
An offer letter defines the process for issuing written offers of employment at your organisation. It ensures we communicate employment terms accurately, satisfy regulatory requirements, and formally establish and preserve the at-will employment relationship.
Having it written down means the same rules apply to everyone, so managers are not making judgement calls case by case under pressure.
What does an offer letter include?
This template covers procedure.
Every section is written to be filled in. The bracketed placeholders mark the decisions that are yours to make, such as timescales, approval owners and retention periods.
How to use an offer letter with Whale
Copy this template into Whale and work through the bracketed placeholders so it reflects how your organisation actually operates.
Assign it to the teams it applies to so it sits where people work rather than in a shared drive, and set a review date so it gets revisited on schedule instead of quietly going out of date.
Use our templates to fast-track your documentation
Customize this template and 100s of others for free in Whale, the fastest way to get your team aligned.
