What does an offer letter mean?
An offer letter is a formal written confirmation that a company wants to hire a candidate. It is usually sent after interviews and selection, but before the employee starts work. The offer letter helps the candidate understand the role and decide whether to accept the position.
An offer letter may include the job title, salary, reporting line, start date, work location, working hours, benefits, probation period, employment type, and any pre-employment conditions. These conditions may include background checks, reference checks, medical checks, right-to-work checks, or signing the employment contract.
An offer letter is related to a job offer, but it is not always the full employment contract. The offer letter often summarises key terms, while the employment contract sets out the more complete legal and employment terms.
Why offer letters matter for employers
Offer letters matter because they reduce misunderstanding before employment begins. Salary, benefits, working hours, remote work expectations, employment status, and start date should be clear before the candidate resigns from their current job or prepares to join.
For businesses hiring in Southeast Asia, offer letters should be written carefully. Candidates in Indonesia, the Philippines, Malaysia, Vietnam, or Thailand may want to understand gross salary, take-home pay, statutory benefits, probation, public holidays, equipment support, and whether the role is hired directly, through an Employer of Record, or another structure.
The offer letter should not promise terms that the employer cannot support later in the employment contract or payroll setup. If the role will be employed through an EOR, the offer should be coordinated with the local employment structure before it is sent.
Weshine’s recruitment service can support employers from sourcing to offer coordination, while Weshine’s Employer of Record service can support the local employment setup after a candidate accepts.
Common mistakes employers should avoid
A common mistake is sending an offer letter before confirming total employment cost. Employers should review salary, statutory contributions, payroll administration, benefits, and equipment before making the offer.
Another mistake is using vague wording around bonuses, commissions, remote work, or probation. If a payment is discretionary or conditional, the offer letter should say so clearly.
Employers should also avoid sending an offer letter that conflicts with the final employment contract. The candidate should not receive one set of terms in the offer and a different set later during onboarding.
