Differences Between Offer Letters vs. Employment Contracts

An offer letter is used to give a job offer to a potential new hire. If accepted, they will then officially join the company by participating in your onboarding process. That’s where they typically select their benefits package and learn the ins and outs of your practice. 

On the other hand, an employment agreement (sometimes called an employment contract) can be a legally binding document that goes into more detail about the terms and conditions of your potential hire’s employment — meaning it’s more explicit and lists the full conditions of employment.

Frequent Mistakes

An offer letter should never include:

• The duration of a job (unless it's a fixed-period or temp position.)
• Grounds for resignation or termination. 
• Full requirements and duties of the job position.

Writing an Offer Letter That Avoids Employment Contracts

Give Basic Information at the Start

• Start with basic information regarding the position. This should include the start date, shift status, and whether the placement is full or part-time, and other basics.
• Many healthcare practices include provisions allowing them to remove or alter statements in the letter at a later time.

Provide Information Regarding the Job

• Provide job-specific information without making promises. Make sure to include pay periods, wages or salary, probationary periods, and supervisor information.

List Paid Leave and Benefits

• Include information regarding paid time off, sick/personal time, paid holidays, and any other benefits (e.g., life insurance, health insurance, etc.) that employees will receive.

Offer Terms of Employment 

• Include any conditions of employment. Whether the pharmacy coordinator position requires a drug test or you want all employees to sign confidentiality agreements, this is the time to mention it.

Make It Clear That This Is “At-Will Employment”

• This will not necessarily negate promises made during the interview or onboarding process, but it’s an important part of ensuring any offer letter doesn’t turn into an employment contract. 

Closing

• Close strong by letting the applicant know you’re excited to have them on board. Provide contact information if they have questions as well. We recommend reaching out for an HR consultation for a quick review, though, before sending this out to any applicants. 

The most important thing to keep in mind?

Keep Your Offer Letters Simple. 

When reaching out to your potential hire, you want to stand out and remind them why they chose your practice to apply with. It’s pretty likely that they applied for a lot of other positions by the time you’ve interviewed with them. In your excitement to snag an amazing, new employee, though, it’s important that you don’t turn your offer letter into any kind of binding contract. 

Remember, An Offer Letter:

• Isn’t a legally binding contract.
• Includes basic information.
• Includes that all-important “at-will” statement.
• Does not have any promises of future employment or wages.

Interested in a Template for your practice to use?

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Book a 10-minute, no-obligation demo with Done Desk today and mention this blog post to receive a free Employment Offer Letter for your practice to use!