#HRGUIDE: BASICS OF AN OFFER LETTER

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HRGUIDE BASICS OF AN OFFER LETTER

• FAST COLLAB

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Description

• HRGuide is an initiative by Applicant Tracking
  System to guide HRs who are new in the profession
  of Human Resources and its responsibilities.
  Today we are covering about the basics of an
  Offer Letter, why is it important to provide the
  candidate with a offer letter.
• An offer letter is a document that formally
  confirms the details of an offer of the
  employment. It is taken as a written proof of
  contract between the employee and the employer.
  During the time of interview, if a candidate is
  selected, it is mandatory for HRs to provide the
  candidate a document of Offer Letter. Generally
  the employee has to sign and return a copy of the
  letter to employer as a formal acceptance of
  employment. However it is not necessary that it
  is to be signed immediately.

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Some of the basic information that should be
mentioned

• 1. Basic Job Information
• Offer letter should contain the Title
  of the position, department to work in and whom
  the new joinee is supposed to report to. This
  should also inform the employee, location of the
  job and when he can join the company. Also,
  mention if it is full time employment, or a
  part-time work.
• 2. Salary
• How much the employers are paying the
  employee should be mentioned. A recommended way
  is to segment the salary into various components
  like Basic Salary, HRA, Allowances, Bonus etc.
  whichever is applicable in your organisation.
• 3. Bonuses
• If there is any amount that is paid as
  bonus, it should be mentioned. The letter must
  clearly say dates or approximate time period
  (monthly, quarterly, half yearly or yearly)
  distribution of bonus. For more transparency,
  tell employees the format of bonus could be
  cash, added in salary, paid leaves etc. As much
  possible, tell employees how their bonus will be
  calculated.
• 4. Policies
• HRs are advised to mention all the
  relevant policies that are applicable with this
  job in the offer letter provided. This will keep
  the employee in sync with the companys working
  style. It could be leave policy, working days or
  working hours policy, work etiquettes etc.

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General Terms and Conditions that comes with an
Offer Letter

• 1. Contract of Employment
• If there is any contract between
  the company and the employee, it should be
  clearly mentioned. The letter should clearly say
  the period of probation (if any), notice period
  (if quitting the company) and any bond period (if
  applicable) that an employee is expected to
  serve. Also mention the fines an employee need to
  fill if not meeting these contract terms.
• 2. Expiration of Letter
• Once HRs provide offer letter to the
  selected candidates, they should also mention the
  expiry date to the acceptance of the same. A
  recommended timeline would be to ask candidate to
  give his acceptance within 30 days. This will
  make the process fast. If the employee is not
  willing to accept the offer, the employer can
  look for another candidate within time.
• 3. Confidentiality Clause
• Generally along with the offer letter
  employee has to sign a letter accepting that he
  will not share any confidential information of
  the company to anyone. This might include, but
  not limited to, hardware knowledge, software
  knowledge, tools and techniques used by the
  company, patent and copyrights information etc.
  Breaching which the employee might be subjected
  to legal actions.
• Providing an offer letter and
  receiving a signed copy of the same is most
  crucial for any company. If the procedure is not
  followed, a candidate might not feel trust in the
  company and can look to switch company soon.
  Without this letter, an employer cannot take any
  action against the leaving employees.

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Thanking You

• BY
• FAST COLLAB
• http//www.fastcollab.com/