If you`ve ever been offered a job, you may have heard the term “letter of offer” thrown around. And while it may sound official and binding, it`s important to understand that a letter of offer is not the same as a contract.
So, what`s the difference?
A letter of offer, also known as an offer letter or employment letter, is a document that outlines the terms and conditions of a job offer. It typically includes details such as the position title, start date, salary, benefits, and any conditions of employment (such as passing a background check or drug test). This letter serves as a confirmation of the employer`s intention to hire you and gives you an opportunity to review and accept the terms of the job offer.
On the other hand, a contract is a legally binding agreement between two parties that outlines the terms and conditions of a working relationship. This document is more comprehensive than a letter of offer and includes details such as the duration of employment, termination clauses, confidentiality agreements, and non-compete agreements. A contract is usually signed after the letter of offer has been accepted and before the employee starts working.
While a letter of offer is not legally binding, it can be used as evidence of the terms and conditions of the job offer if a dispute arises later on. It`s important to review the letter carefully and ask any questions you may have before accepting the job offer. Once you accept the offer, you may be bound to its terms.
In summary, a letter of offer is a non-binding document that outlines the terms and conditions of a job offer, while a contract is a legally binding agreement that outlines the terms and conditions of a working relationship. Both documents are important and should be reviewed carefully before accepting a job offer.