Offer letter basics for small businesses

On this page

  1. What an offer letter is for
  2. What a simple offer letter usually covers
  3. An example structure
  4. Keep it clear and simple
  5. Get the pay and details right first
  6. After they accept

Overview

What an offer letter is for

An offer letter is a short, clear note that tells the person what you are offering, so both sides know what was agreed before the first day. It reduces misunderstandings about pay, timings and joining.

This page is general guidance, not legal advice. Every business is different, so please check your final wording with a qualified professional.

The letter should match what you said on the phone. If anything changes, update the letter before the person accepts.

Contents

What a simple offer letter usually covers

Keep it to one page where you can. Most small-business offer letters cover these points.

  • The role: job title and, in a line or two, what the person will do.
  • The start date and the time to report on the first day.
  • The place of work, with the full address.
  • Working hours and weekly off.
  • The pay range agreed, and when it is paid.
  • Probation, if you have one, and how long it lasts.
  • Documents to bring on the first day.
  • How and by when to accept the offer.

Example

An example structure

This is only an example of the order and the kind of detail. It is not a legal template. Replace each placeholder with your own details and have a professional check the final wording.

Opening
Dear [candidate name], we are pleased to offer you a position with [company name].
Role
[Job title], working with [team or manager]. Main tasks: [two or three lines].
Start date
[Date], reporting at [time] to [person name].
Place
[Full workplace address, locality, Mumbai].
Hours
[Working days and hours], weekly off on [day].
Pay
[Pay range agreed], paid on or before [date] each month.
Probation
[If any: length and what happens at the end].
Documents
Please bring [list of documents] on your first day.
Acceptance
Please confirm by [date and time] by replying to this letter or calling [name and number].
Closing
We look forward to working with you. [Name, designation, contact].

Style

Keep it clear and simple

A good offer letter is one the person can read once and understand. Use plain words and put the key facts where they are easy to find.

Avoid

Do this instead

  • Avoid

    Long, heavy paragraphs

    Do this instead

    Short lines, one point each.

  • Avoid

    Leaving out details you agreed by phone

    Do this instead

    Write every agreed point in the letter.

  • Avoid

    Vague words like “as discussed”

    Do this instead

    State the actual date, time, place and pay range.

  • Avoid

    Copying a letter from another business without reading it

    Do this instead

    Write your own and read every line before sending.

Before you send

Get the pay and details right first

The letter is only as good as the decisions behind it. Settle the pay range before you make the offer; see how to set a salary for a role. If you are not sure about someone's background, read how to check candidate experience before you decide.

  • Make the offer by phone first, then send the letter the same day.
  • Read the letter once more for names, dates and numbers.
  • Ask for a reply by a set time.
  • Keep a copy, and keep your second choice warm until the first one accepts.

Next

After they accept

Confirm the joining plan and get the workplace ready. The first-week onboarding checklist shows what to prepare. If you are in a hurry to fill a role, see how to fill an urgent vacancy.

Before using any letter for real, have a professional check it. That small step protects both you and the new employee.

FAQ

Common questions

Is this a template I can copy?

No. It is a general example of the structure, to help you think through what to include. Your business and role are different, so write your own and have the final wording checked by a professional.

Does a small business really need an offer letter?

Putting the offer in writing helps both sides remember what was agreed. It does not need to be long. Whether anything more is needed for your situation is a question for a professional.

Should I send the offer before or after the phone call?

Speak first, then send the letter the same day. The call lets you answer questions, and the letter gives the person something clear to read and keep.

What if the candidate asks for changes?

Listen, decide what you can agree to, and update the letter so it matches. Do not agree to anything by phone that is not in the final letter.

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