← All postsHow-to

Employment letter: the types, what each must say, and how to send it

An employment letter is a short document with legal weight. Confusing the offer, the contract and the confirmation letter is the most common and most expensive mistake.

How-toE

An employment letter is one of those documents everybody has seen and few have written carefully. The phrase covers at least four different documents with different purposes and different consequences, and the trouble starts when one is used where another was needed — an offer that reads as a contract, or a confirmation letter that accidentally promises a bonus.

This is not legal advice, and employment law is local. But knowing which letter you are writing prevents most of the damage.

The four documents people mean

  • Offer letter — an invitation to accept a role, stating position, start date, pay and the conditions the offer depends on. It is usually not the full contract, and it should say so.
  • Employment contract or statement of terms — the binding agreement covering duties, pay, hours, notice, holiday and everything a jurisdiction requires. Many countries mandate that specific terms be given in writing within a set period.
  • Employment verification letter — confirmation for a third party such as a bank or a landlord that a person works here, usually stating role, start date and sometimes salary, released only with the employee's consent.
  • Letter of recommendation or reference — an opinion about performance, which in some countries is regulated in what it may and may not say.

The offer letter is where most avoidable disputes begin. If it lists benefits, bonuses or review dates in loose language, those words can be read as promises later. State what is fixed, mark what is discretionary, and say plainly that the contract governs.

What an offer letter should contain

  • Job title, reporting line, and the location or working arrangement.
  • Start date, and whether it depends on anything — references, right to work, a background check.
  • Pay: amount, frequency, and any variable element described as variable rather than expected.
  • Working hours and the basic pattern.
  • Probation period, if any, and what it means in practice.
  • The expiry date of the offer itself, and how to accept.
  • A line stating that the employment contract sets out the full terms.

Sending it so it comes back signed

  1. Have the contract ready before the offer goes out. An accepted offer with no contract for two weeks is where terms start drifting.
  2. Send the offer and the contract together where your process allows — candidates decide faster when they can see everything.
  3. Send for electronic signature rather than as an attachment to print: one document, one status, one signing history.
  4. Set an expiry on the offer and a reminder before it, so nothing lapses silently.
  5. Store the signed copy with its completion certificate in the employee's record on the day it completes.
  6. Diary the probation end date at the same time — it is the deadline most often missed.

In Ettex, the letter templates live in PDF — offer letter among the ready contract templates — and Ettex Sign handles execution: signature, date and text fields placed on the document, sequential signing, per-signer messages, automatic reminders, expiry dates, and an audit trail logging every view and signature with time and identity. The completed letter downloads as a sealed PDF with a completion certificate, which is exactly what you want on file years later when someone asks what was agreed.

Verification letters, handled properly

A verification letter should be short, factual and released only with the employee's consent — role, employment dates, and salary only if the employee has agreed to it being disclosed. Do not add opinion, do not speculate about future employment, and keep a copy of what was sent and to whom.

The same restraint applies to references in the other direction. Say what you can support with records, keep it consistent between candidates, and route requests through one person rather than letting each manager improvise.

Frequently asked

Is an offer letter legally binding?

Once accepted it generally creates obligations, though it is usually not the full contract. How binding it is depends on the wording and the jurisdiction — which is why it should state that the contract governs.

What is the difference between an offer letter and an employment contract?

The offer invites acceptance and summarises key terms; the contract sets out all terms and is the document that governs the relationship.

What should an employment verification letter include?

Job title, employment dates, and salary only with the employee's consent. Keep it factual and avoid opinion.

Can employment letters be signed electronically?

For most commercial and employment purposes yes, across the EU, UK and US. A few jurisdictions impose formalities on specific documents, so check locally.

How long should we keep employment letters?

With the rest of the employment record, for the retention period your jurisdiction sets — usually years after employment ends, because disputes and verification requests outlive the job.

Write the employment letter you actually mean: an offer that invites, a contract that governs, a verification that states facts. Send it for signature, store the sealed copy, and diary the dates it creates.

SL
Written by Sofia L.

Part of the Ettex team — writing about product, engineering and the future of work.

More posts
Get the best of the Ettex blogProduct news, guides and tips — straight to your inbox, no spam.