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Offer Letter
I need an offer letter for a mid-level software developer with 3 years of experience, including details on a competitive salary package, health benefits, and a flexible work schedule. The position includes a 3-month probation period with a 2-week notice and a 1-month notice period thereafter.
What is an Offer Letter?
An Offer Letter is the formal document that kicks off an employment relationship in Nigeria, spelling out the key terms of a job offer. It serves as your first official agreement with an employer, laying out essential details like your salary, position title, start date, and basic work conditions.
Under Nigerian labour law, while offer letters aren't strictly required, they've become standard practice for protecting both employers and employees. Think of it as a snapshot of what you and your employer have agreed to - it forms the foundation for your employment contract and helps prevent future misunderstandings about job expectations and compensation.
When should you use an Offer Letter?
Use an Offer Letter right after selecting your preferred candidate but before they start work. This document helps Nigerian employers lock in top talent by clearly stating job terms while the candidate is still excited about the opportunity. It's especially crucial when hiring for senior roles, specialized positions, or roles with complex compensation structures.
Many Nigerian organizations send Offer Letters immediately after verbal agreements to prevent misunderstandings and maintain professional standards. It's particularly important when dealing with international hires, remote workers, or when offering unique benefits packages. The timing allows both parties to address any concerns before the formal employment contract is drafted.
What are the different types of Offer Letter?
- Job Offer Letter: Standard employment offer detailing basic role terms, salary, and conditions
- Business Offer Letter: Used for contractor or consultant engagements with business-specific terms
- Job Appointment Letter: More formal version with detailed responsibilities and company policies
- Position Acceptance Letter: Employee's written confirmation accepting offered terms
- Contract Acceptance Letter: Formal acknowledgment of contract terms, often used for senior roles
Who should typically use an Offer Letter?
- HR Managers: Draft and customize Offer Letters, ensure compliance with Nigerian labour laws, and manage the hiring process
- Company Directors: Review and authorize offers, especially for senior positions or when special terms apply
- Legal Teams: Verify terms align with employment regulations and company policies, update templates as needed
- Job Candidates: Review, negotiate, and accept the offered terms before starting employment
- Department Heads: Provide input on role-specific requirements and compensation details
- Company Secretary: Maintains official records and ensures proper documentation for corporate governance
How do you write an Offer Letter?
- Position Details: Gather exact job title, department, reporting structure, and key responsibilities
- Compensation Package: Confirm salary, benefits, allowances, and any performance-based incentives
- Employment Terms: Document work hours, leave policy, probation period, and notice requirements
- Company Information: Include official business name, registration details, and office location
- Candidate Details: Verify full name, contact information, and professional qualifications
- Legal Requirements: Our platform ensures compliance with Nigerian Labour Act provisions and industry standards
- Review Process: Set up internal approval workflow with HR, department head, and senior management
What should be included in an Offer Letter?
- Job Description: Clear outline of position title, duties, and reporting relationships
- Compensation Terms: Detailed breakdown of salary, allowances, and benefits as per Nigerian Labour Act
- Work Conditions: Specific working hours, location, and leave entitlements
- Start Date: Confirmed employment commencement date and any probation period details
- Confidentiality Clause: Protection of company information and trade secrets
- Termination Terms: Notice period requirements and conditions for ending employment
- Acceptance Section: Space for both employer and employee signatures with date fields
- Company Policies: Reference to employee handbook and workplace regulations
What's the difference between an Offer Letter and an Engagement Letter?
A key distinction exists between an Offer Letter and an Engagement Letter in Nigerian business practice. While both documents initiate professional relationships, they serve different purposes and contexts.
- Legal Status: Offer Letters primarily outline employment terms and conditions, serving as a precursor to an employment contract. Engagement Letters typically govern professional service relationships, like consulting or advisory work.
- Scope and Duration: Offer Letters usually establish ongoing employment relationships with regular salary and benefits. Engagement Letters often cover specific projects or limited-duration services with defined deliverables.
- Terms Coverage: Offer Letters focus on salary, position, and standard employment benefits. Engagement Letters detail project scope, fees, timelines, and professional service terms.
- Relationship Type: Offer Letters create employer-employee relationships under Nigerian Labour Law. Engagement Letters establish client-contractor relationships under commercial law.
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