'From Both Sides of the Desk'
ISSUE NO 11 - AUGUST 2005
THE JOB OFFER AND ACCEPTANCE
All offers should be in writing, regardless of the level of the position
THE JOB OFFER - Employment is a contract between the employer and the employee and as with other important contracts should always be put in writing.
In our last issue, we discussed: ‘Reference Checking' In this issue, we move to the final stage of 'The Job Offer.'
Introduction
Employment is a contract between the employer and the employee and as with other important contracts should always be put in writing.... so that responsibilities and undertakings are clearly stated, whether directly or via a recruitment consultant.
Writing an Offer of Employment letter
It was once only considered necessary to put job offers for senior positions in writing. Today it is accepted as a sound management principle that all job offers, regardless of the level of the position, should be in writing. Written job offers protect the interests of the applicant and the company as they reduce the possibility of misunderstandings and are a permanent record of the conditions offered and accepted.
Some companies routinely provide contracts prepared by legal professionals for particular positions within the company. These contracts are very detailed and may address matters such as the length of the contract, the performance standards the employee will be expected to achieve and the remedies that the employer may apply if these are not realised.
However, in the majority of instances a well prepared letter of offer will address the key issues you will need to cover for most wage and salaried positions. (See our sample letter of offer on page 84.)
While it is common for job offers initially to be made verbally, they should always be promptly followed up with a written offer or confirmation of employment letter. It is also unreasonable to expect an applicant to give notice to a current employer, without the security of a written offer of employment from the prospective employer.
Topics which may be included in a letter of offer of employment for both wage and salaried positions are:
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Confirmation of the position title.
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Remuneration details (wage/salary/company vehicle)
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Date of commencement
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Hours of work
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Benefits in addition to remuneration (bonus/share options)
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Probationary period
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General terms and conditions
- Induction program
- Pay arrangements
- Performance reviews
- Company vehicle details
- Shift work/overtime/rostered days
- Superannuation plan details
- Confidentiality undertaking
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Notice period in the event of termination
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Provision for the applicant to give written acceptance of the conditions outlined.
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Administration.
This may include first day procedures as well as the need for the applicant to present certain documents for verification and entry into official records. For example tax file numbers, banking details, superannuation details, birth certificate or passport.
Note: Some employers make a practice of including a Position Description with the letter of offer with an explanation that the duties and responsibilities of the position described, are as stated in the attached position description. You may also need to consider just how long you leave an offer of employment open for. For example, it may be sensible to state that the offer will remain open to the applicant until the close of business on a certain date.Don’t delay! Procrastination may result in disappointment!
Confirming Acceptance
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Always provide the applicant with an original and a copy of the letter of offer. The copy should contain a space and appropriate wording for the applicant to indicate their acceptance of the terms and conditions included in the letter.
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Make sure you have received the signed copy of the letter before allowing the new employee to commence work. Allowing the employee to commence employment (without a signed letter of offer) implies that you are both in agreement with the terms under which they are employed. However, in the event of a disagreement you do not have a signed document to refer to. This is an unnecessary complication, which can be easily avoided.
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Be prepared to negotiate certain terms of employment and if necessary issue a revised letter of offer. If using a consultant, remember that it is part of their service to make the job offer and mediate on behalf of both the applicant and the employer.
Note: If you are in the fortunate position of having two suitable applicants, we suggest you confirm the acceptance of one before rejecting the other.
This newsletter is produced as a result of positive feedback from our book - 'From Both Sides of the Desk' and as a value added service to our clients, We are delighted to share with you, excerpts and tips from the book in this regular newsletter. From Both Sides of the Desk will significantly enhance.... read more>>
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