Business Management
Posted by Celia Couture on Tue, Jul 20, 2010 @ 09:40 AM
As business owners, we are also responsible for hiring. There are a whole hosts of steps to the hiring process, but none more important than the offer letter. Offer letters, set the stage for what an employee can expect from an employer, but it also sets the stage for what the employer expects from the new employee!
Offer letters must be coherent, informative, and legally sound. In many cases, these letters must satisfy the goals of avoiding, reducing, or resolving liability. For example, it is in the employer’s interest to preserve the at-will relationship. Under the at-will doctrine, which is the standard in the vast majority of states, either the employer or employee may, subject to certain exceptions, terminate the employment relationship at any time, for any reason, or for no reason. Courts have found that statements made in offer letters and other written statements made to employees can create an implied contract that alters the at-will relationship.
In the case of offer letters, the most important thing an employer should do to preserve the at-will relationship is to include a disclaimer prominently in the offer letter. State courts have set different standards for how and when an implied contract may be created, and employers must make sure that the disclaimer contains the language required in their state. Employers should also have their legal counsel review letters.
A job offer letter could become a legally-binding employment contract of sorts, should the employee later dispute what you offered vs. what he or she actually received on the job. So, make sure that you can deliver what you offer in writing. (Consult legal council if you have any doubts about writing a job offer letter.) But do include as many details as practical in your job offer letter or as attachments or enclosures, so that your job candidate has enough information to make an informed decision. Remember, candidates might receive other job offers. Consequently, you might be competing for their attention.