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What is the difference between an offer letter and an employment contract? An offer letter is a short congratulatory note extending a job offer, while an employment contract is an extended written agreement setting out the terms and conditions of employment.
A typical employment offer will: Offer the job to the applicant. Give details about the company and the job so that the candidate can better assess whether they want to accept the offer. Summarize the main conditions and terms of the offer. Serve as a place to start for employment negotiations.
An Employment Offer Letter provides evidence of the contractual agreement between an employer and their potential employee. It clearly outlines the terms and conditions of a job position so that both parties know what to expect.
A letter of intent (LOI) or ?offer letter? outlines the terms of employment in a much simpler format than what will be presented in a contract. The LOI is a preliminary document based on the mutual interest and good faith of both parties.
Depending on the company's policy and hiring process, the candidate will also receive the offer via email or in writing. A job offer to a candidate, whether it is made via phone or email, must be followed by a formal job offer letter where the details of the offer of employment are confirmed.
So . . . what does it really mean to accept an offer of employment? In a nutshell, it means making a commitment to the company that extended the offer and then keeping that commitment. In other words, do not make the commitment if you aren't 100% sure that you can keep the commitment.