Terms and Conditions in Job Offer Letter

Terms & Conditions in Offer Letter

A job offer letter must contain all the necessary terms and conditions to clarify all the aspects related with selection for job. Here is a point wise description of every point which are important and must be included while drafting terms and conditions for the job. Follow these points to draft your own terms and conditions in the best of the manner possible:

1. Title

It must contain the job title on which the candidate has been selected.

2. Start Date

The next important thing in the letter is the start date of the job.

3. End Date ( In case of fixed contracts)

The offer letter must also contain the end date of the employment of the candidate.

4. Roles and Responsibilities

The job offer letter must contain all the necessary points concerning the roles and responsibility of the job profile. There has to be a point-wise description of the main highlights of the job. This will help the candidate deliver his services with the best of the understanding of what is expected of him.

5. Reporting Relationships

There has to be a mention of the person to whom the new employee must report. Mention the name of that person along with his designation to bring more clarity in the reporting relationship.

6. Probation Period

There has to be well defined probation period, if any. The purpose of this period is to train the new appointment within a definite time to have complete understanding of his job so that he can achieve satisfactory levels of performance. It should also contain the information about extending this period in case the candidate fails to deliver expected performance levels along with the information on interim reviews.

7. Appraisal

There has to be a mention of appraisal scheme related with the job profile. The purpose is to encourage the candidate for his career development and personal development. It must contain information on implementation of appraisal specific to the department. This will work as the motivation for the employee to deliver better performance.

8. Salary

This is the most important segment of the job offer letter. It must contain the following information:

  • Rate of Pay

It must contain the title of the post, the commencing rate of pay along with salary scale which is mentioned in the letter of appointment. It must also be made clear that there will be no other remuneration other than the payment.

  • Other Benefits

In case, there are other benefits like insurance, travel allowance, group incentives etc. they must be mentioned too. Put all the benefits with clear detailing about each.

9. Superannuation

There has to be a mention of superannuation plan of the company which is designed to benefit its employees after retirement. The offer letter must contain the deductions as per the pension plan. A new eligible employee gets enrolled in the appropriate pension scheme automatically when he joins the company.

10. Hours of Work

The next important thing to be mentioned is the hours of work. The letter must contain the daily working hours along with mention of special circumstances like part-time or extra-time working and the remuneration that will be paid for extra working.

11. Travel Requirements

Make a mention of travel requirements, if any. It must also include the frequency of travelling concerning the job profile.

12. Public Holidays, Overtime etc.

Information of public holidays and compensation for overtime on regular days and on public holidays must be mentioned in a simple and easy to understand language.

13. Holidays

This head must contain information on the number of paid leaves to which the candidate is entitled. It must also mention the exception holidays like locally agreed department closure holidays etc. along with the payment conditions on all such days. Special mention of conditions regarding holidays during probation etc.

Below are some of the conditions on which the letter must focus to bring more clarity:

  • Additional Holidays for Long Service
  • Holiday Entitlement for Part-time Workers etc.

14. Termination Clause

There are two conditions under this head which must be kept in mind.

  • Termination of Appointments by Notice

Make sure you mention the period of notice which you are obliged to give the candidate before terminating him. It must be given in writing. This period usually varies between weeks to a month depending upon the organization. Do mention all the other conditions concerning the termination.

  • Retirement

Do make a mention of the normal date of retirement in your company. Also mention the age of retirement.

15. Restrictive Covenants

This is an important part of the terms and conditions. It is asking the candidate to maintain the confidentiality of the intellectual property of the company. This is a non-disclosure agreement which maintains the confidentiality of important information of the organization.

These are some of the important points which must be kept in mind while designing the terms and conditions in the job offer letter of your company. Customize these points as per the need of your company.

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