How to write a job offer letter in the UK (with templates)
So, you’ve completed the interviews, vetted the prospective employees, and settled on one lucky candidate to fill the opening. Now it’s time to send them the offer letter so you can officially get the onboarding process rolling. This is an essential step when you’re getting ready to hire an employee in the United Kingdom.
Sending an offer letter—sometimes termed a “contract of employment” in the UK—is crucial for several reasons. It gives you the opportunity to outline important details, such as the new hire’s duties and responsibilities, the benefits they’ll receive, including time off, and the salary. The offer letter will serve as a point of reference while you work things out, particularly if the individual decides they’d like to negotiate with you over the latter.
Here’s everything you need to send a legally compliant offer letter to hire a full-time employee in the United Kingdom.
What is a job offer letter?
A job offer letter is a document employers send to candidates, formally inviting them to work within the company. Sending and signing an offer letter is typically completed before the new hire onboarding process kicks off.
A job offer letter should be as detailed as possible, covering all the terms and conditions of employment prospective hires need to bear in mind before accepting a new position.
If a candidate accepts your offer, they will sign the letter and send it back to you. Remember, a job offer letter is not always a legally binding agreement, unlike an employment contract, which is typically a separate document.
What should you include in a job offer letter?
When creating a job offer letter, you must ensure the document outlines key terms and conditions of employment. That includes general information, such as the job description, hours, and place of work, but also details regarding compensation and benefits a new hire is entitled to.
We'll go through each important segment to help you make your own job offer letter checklist.
Job Title and Probationary Period
First and foremost, a job offer letter should include the job title, job description, start date (and end date if you are working with a fixed-term employee), and whether an employee will be subject to a probationary period during which an employer assesses the new hire's performance to determine whether they are a good fit for the company in the long run.
There is no minimum or maximum probationary period length set by law in the UK, but most probation periods last between three and six months. In the offer of employment, you should explain that the probationary period is used to gauge whether the new hire is a good fit for the role and indicate how long it will last.
Consider including the offer's expiration date for the sake of clarity for both parties. Just make sure to put the date in a place of the offer letter that’s clearly visible, like in one of the first paragraphs.
Hours of work
The average full-time employee works 40 hours per week, but anything more than 35 hours per week is typically considered full-time. Specify the new hire’s expected schedule, and be sure to include any breaks. Under the UK government’s Working Time Directive—also called Working Time Regulations—most employees can’t work more than 48 hours per week, as averaged over 17 weeks.
If you think you’ll need the new hire to work overtime, you’ll have to ask them to opt out of the 48-hour rule. Keep in mind that even if they do this, they can rescind their agreement anytime they want, regardless of whether or not it’s written in the contract.
Compensation and benefits
Here’s what you should cover in the section specifying employee compensation and benefits.
Salary, expenses, and deduction
A job offer letter must primarily specify the annual salary or hourly wage you’re offering the employee, as well as whether you intend to pay them daily, weekly, or monthly. Additionally, detail whether the company will reimburse the new hire for certain expenses or if it will be providing cash or non-cash incentives, contributions to their pension fund, and any other forms of remuneration.
Workplace pension scheme
You are legally required to enroll all of your employees in a pension scheme and to make contributions to it, except under very limited circumstances. Indicate the details of automatic enrollment in this section. Include the date the individual was enrolled, the amount the company will contribute as well as the type of plan, how to opt out of the scheme, and which tax relief laws apply to them.
Commissions and bonuses
Information about performance-related pay is frequently included as an addendum to the section in the employment contract that discusses remuneration. It’s crucial to be specific about the ways an employee can be expected to be compensated beyond their wage because it will protect you in the event a situation in which the staff member claims you failed to pay them a commission or bonus they were owed arises.
Vacation
The statutory leave entitlement—or annual leave—for all individuals classified as “workers” under UK Employment Law is 5.6 weeks, or 28 days, per year. You are legally permitted to include the eight bank holidays employees get in this amount. The exact arrangement, including any additional paid leave the employee will receive for, say, becoming a parent, should be specified in this section.
Place of work
Indicate whether the employee is working on-site or from home. If it’s the former, list the address of the office they’ll be expected to commute to and from.
Sick Leave
UK employment law requires all companies to abide by Statutory Sick Pay legislation, which states that eligible employees who are too ill to work are entitled to receive up to £116.75 per week for up to 28 weeks. Your company may choose to offer additional compensation beyond this under its sick pay scheme.
Confidentiality
Detail the company’s confidentiality and non-disclosure agreement (NDA) policies in this section. Additionally, indicate which law (England, Scotland, Wales, or Northern Ireland) governs the terms of the agreement and which country it can be enforced in. This is particularly crucial if you and the employee reside in different countries within the UK.
Termination policy
State the terms under which an employee can be dismissed from the company, as well as how much notice they should expect. Under UK Employment Law, you are permitted to terminate an employment contract without giving any notice as long as you can show you have justifiable grounds for doing so, such as gross misconduct.
Conditions and warranties
UK Employment Law allows you to decide whether you’d like a new hire to pass certain checks before the employment contract is considered legally binding. Under a conditional offer of employment, you can rescind the offer if the person doesn’t meet certain conditions like passing a background or health check or supplying the necessary references. An unconditional offer means that if they accept and you then try to back out, you can be sued for breach of contract.
4 job offer letter templates
Every company has its own format for writing offer letters. These are our suggestions.
Standard offer letter template
[Company Letterhead or Company Logo]
[Date]
[Candidate’s Name] [Candidate’s Address] [City, State, Zip Code]
Dear [Candidate’s Name],
We are delighted to offer you the [Job Title] position at [Company Name]. We were impressed with your skills and experience and look forward to welcoming you to our team.
Position Details:
Start Date: [Start Date]
Salary: [Annual or Hourly Wage] payable [frequency of payment, e.g., bi-weekly]
Benefits: [Briefly outline benefits, such as health insurance, 401(k), paid time off, etc.]
Work Schedule: [Full-Time/Part-Time; any specific work hours or expectations]
This offer is contingent upon [any necessary conditions, such as background checks, reference checks, etc.].
Please confirm your acceptance of this offer by [method of acceptance, e.g., signing and returning this letter, email confirmation] by [deadline for acceptance].
We are excited about the possibility of you joining our team and look forward to your contributions. Should you have any questions, please do not hesitate to contact us at [Contact Information].
Sincerely,
[Your Name] [Your Position] [Company Name] [Contact Information]
Part-time offer letter template
[Company Letterhead or Logo]
[Date]
[Candidate’s Name] [Candidate’s Address] [City, State, Zip Code]
Dear [Candidate’s Name],
We are excited to offer you the part-time position of [Job Title] at [Company Name]. We are confident that your skills and enthusiasm will be a great addition to our team.
Position Details:
Start Date: [Start Date]
Hourly Rate: [Rate]
Expected Hours: [Weekly/Monthly Hours; specific shifts if applicable]
Work Schedule: [E.g., evenings, weekends, or specific days]
Benefits: [If applicable, e.g., prorated PTO, part-time health benefits, etc.]
Please confirm your acceptance by [date]. If you have any questions or need clarification, feel free to reach out to us at [Contact Information].
We are looking forward to welcoming you to our team!
Best regards,
[Your Name] [Your Title] [Company Name]
Internship offer letter template
[Company Letterhead or Logo]
[Date]
[Candidate’s Name] [Candidate’s Address] [City, State, Zip Code]
Dear [Candidate’s Name],
We are pleased to offer you an internship position with [Company Name] in [Department Name] department
Internship details:
Start Date [Date]
Duration: [Internship period]
Working schedule: [Expected weekly hours and schedule]
Stipend (if applicable): [Amount, payment frequently or indicate unpaid]
Supervision: You will report to [Supervisors’ Name and Title]
Please confirm your acceptance by [Date], and feel free to contact us with any questions.
Kind regards,
[Your Name] [Your Title] [Company Name]
Contractor offer letter template
[Company Letterhead or Logo]
[Date]
Dear [Contractor’s Name], we are excited to offer you a position as an independent contractor at [Company Name].
Position details:
Start date: [Date]
End date (if applicable): [ Date]
Service: [Brief description of services the constructor will provide]
Payment terms: [Hourly, Project-based] payable [frequency of payment]
Work schedule: [Expectations about availability and flexibility]
Equipment: [Specify what tools and resources you will provide or indicate that the contractor is responsible for their own tools and equipment]
Please note that this engagement is not an employment relationship. As an independent contractor, you are responsible for your own taxes, benefits, and other statutory obligations.
This offer is contingent upon [any conditions, such as signing a Non-Disclosure Agreement or providing proof of insurance].
Please sign and return this letter by [deadline] to confirm your acceptance. Feel free to contact us for any questions [Contact Information].
Sincerely,
[Your Name] [Your Position] [Company Name] [Contact Information]
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UK job offer letter FAQs
Is a job offer letter legally binding in the UK?
A job offer letter is not always legally binding unless it is unconditional. In that case, the offer letter can become legally binding when the candidate accepts it.
There's also a conditional offer letter that is not legally binding until its conditions are met. For instance, an employer can make an offer with the condition that an applicant undergoes a background check. The letter becomes legally binding if the candidate passes the check.
What is the difference between a job offer letter and a letter of employment?
A job offer letter is a formal invitation from an employer to an applicant outlining the terms and conditions of proposed employment. It typically includes details such as the job description, start date, and benefits, and can be legally binding depending on the circumstances. Once the employer sends it, a candidate reviews, signs, and sends it back, and the negotiation process can begin.
On the other hand, an employment letter is a document verifying an employee’s working status. Employees sometimes use these documents when they want to buy a property, rent a house, or any situation requiring confirmation about employment history.
A letter of employment, sample:
[Your Company Name]
[Company Address]
[City, State, ZIP Code]
[Date]
[Recipient Name/Organization]
[Recipient Address]
[City, State, ZIP Code]
Subject: Employment verification for an employee [Employee Name]
Dear [Recipient Name]
This letter serves to verify the employment of [Employee Name] with [Company Name]
Employment details:
- Full name: [Employee Name]
- Job title: [Employee position]
- Employment type: [Part-time/full-time]
- Start date: [Date]
- Current status: [Active, on leave, etc.]
- Salary information (if applicable): [Annual Salary/Hourly Rate]
[Employee Name] is currently employed in good standing at [Company Name]. Should you require any additional information, please feel free to contact us at [Contact Information].
We appreciate your interest in this matter.
Sincerely,
[Your Name] [Your Job Title]
[Contact Information]
Can an employer withdraw a job offer once it is made?
Yes, an employer can withdraw a job offer, but it depends on the circumstances under which they do it. For example, if a candidate hasn't accepted the offer yet, an employer can withdraw it for any reason unless otherwise stated.
However, after acceptance, withdrawing can result in legal consequences, such as breach of contract claims. Still, withdrawal can be justified when contingencies specified in the offer, like passed background checks, are not met.
This blog is based on information available to Rippling as of December 3, 2024.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
