Offer Letter Format - Summary
An offer letter format is a crucial document sent to candidates who have successfully passed the job selection process. This formal document contains essential details about the job offer, the responsibilities involved, and insights about the company itself. When a candidate signs this offer letter, it serves as a basic legal contract between them and their new employer. However, as specified in Section 5 of the Indian Contract Act, 1872, the employer retains the right to revoke the offer at any time before the candidate formally accepts it:
“A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterward.” Similarly, “An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterward.”
Key Components of an Offer Letter Format
Essential Information to Include
When creating an effective offer letter format, employers must ensure the following important information is included in the job offer letter:
- Job title: The position the potential employee will hold and the level of responsibilities they will have after being selected.
- Job description: A detailed description listing the core responsibilities, general tasks, and other related duties.
- Starting date: The expected date when the new hire should join the company and begin working.
- Work schedule: The expected workload, such as hours per day or days per week, that the employee must fulfill in their job.
- Reporting structure: The relationships between various authorities within a company, detailing the chain of command—who reports to whom.
- Salary: The compensation given to employees for their services. When calculating salary in India, an employer should consider various components, including base salary, wages, commissions, incentives, and more.
This offer letter format PDF is available for download below, which will help you understand how to create a clear and effective offer letter. Make sure to download the PDF according to your needs! 📄