OFFER OF EMPLOYMENT / OFFER LETTER / EMPLOYMENT LETTER

Did you know the difference?

As a young professional, you must have come across these 3 terms at some point.

The terms are usually used interchangeably but there are differences between them.

So let's dig in. Offer of employment refers to an employer expressing her intent to hire a candidate. It usually happens verbally or informally. For example, if a recruiter calls to inform you that you passed your interview and goes ahead to discuss the basic terms of the job, such as position and general conditions.

An offer letter on the other hand is a formal document that details specific terms and conditions of the job. It usually includes job title, salary, benefits, start date working hours, and other relevant information. It's a written record and confirms the offer and acceptance of employment. At this point, you can still negotiate terms and other conditions of the employment. It's the one you sign and return to HR and it's legally binding.

An employment letter is typically given after the employee has started working. I will say this is the one given after you have completed your probation. It solidifies the employment relationship. It confirms your status as an employee. It often includes details like office policies, termination clauses, etc. It is also legally binding.

An employment letter is the one usually required by third parties like banks before granting you a loan. Most organizations usually include a termination clause in their offer letter. As much as these terms are used interchangeably, it's important we know the difference. HR professionals should also make sure that both offer, and employment letters don't violate the labor law.

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Categoria:

Artes e Cultura 

Escrito por:

Nwodi Daniel