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An offer letter is both a policy document and a legal contract. The employer/company envisions certain policy which it believes should govern the organization to help it grow and flourish.
Generally, this means that when an employer makes an offer of at-will employment, the employer is free to rescind that job offer, for any reason or no reason at all, at any time, including the period after the potential employee has accepted the offer but before he or she begins work, without legal consequence.
How do I write a job offer letter?Indicate the company name and job title at the top of the page.Follow this with "Dear Applicant Name," and congratulate him/her.Insert information about the job title, start date, main duties, compensation, benefits, and who the person will be reporting to.More items...
Legal Obligation of Job Offer Letter for Both Parties:The job offer letter issued by the employer to the prospective employee is considered as an affirmative acceptance issued by the employer, awaiting acceptance from the prospective employee.
Can you back out of the job offer? Yes. Technically, anyone can turn down a job offer, back out of a job already started, or renege on an acceptance at any point. Most states operate with what is called at will employment. This means the employee and the employer are not in a binding contract.
In general, offer letters are less formal than employment contracts, which typically set terms and conditions of employment that are legally binding. It's also vital for employers to understand that they aren't required by federal law to send an offer letter to new hires.
Some important details about an offer letter are: It is NOT a legally binding contract. It does NOT include promises of future employment or wages. It includes an employment at-will statement.
Likewise, if it includes any guarantees, limits the employer's right to fire you, or promises you anything else, those promises may be legally binding.
Unfortunately, your boss is correct. An written offer of employment does not constitue a legal contrat unless it guaranteed your employment in some way (i.e. your compensation, etc.) for a specified period of time.