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Offer Letter
I need an offer letter for a new employee in a sales role, with a base salary and commission structure outlined, including details on performance targets and quarterly bonuses. The letter should also specify a start date, standard working hours, and include a clause for a 3-month probationary period with a 2-week notice period.
What is an Offer Letter?
An Offer Letter formally presents the terms of employment between a New Zealand employer and their chosen job candidate. It outlines key details like salary, start date, position title, and basic working conditions while serving as the first step toward establishing a formal employment relationship.
Under NZ employment law, this initial offer must align with fair workplace practices and minimum legal requirements. While not as detailed as a full employment agreement, the offer letter creates important expectations and typically leads to contract negotiations. Most Kiwi employers use it to confirm their hiring intent and set clear foundations for the employment relationship.
When should you use an Offer Letter?
Send an Offer Letter as soon as you've selected your preferred candidate and want to formally present the employment terms. This document kicks off the hiring process by clearly stating the role, salary, and key conditions before moving to a full employment agreement.
Time matters here - getting an Offer Letter out quickly helps secure top talent in NZ's competitive job market. It's especially important when hiring for senior roles, specialized positions, or when dealing with candidates who may have multiple offers. The letter also provides a paper trail of the initial employment terms, protecting both employer and candidate during negotiations.
What are the different types of Offer Letter?
- Business Offer Letter: Standard format for permanent roles, outlining core terms and conditions
- Internship Offer Letter: Tailored for fixed-term training positions with learning objectives
- Conditional Offer Letter: Includes specific requirements like background checks or qualifications
- Temporary Employment Offer Letter: For fixed-term or seasonal roles with clear end dates
- Formal Rejection Letter For Job Offer: Professional response declining employment offers
Who should typically use an Offer Letter?
- HR Managers: Draft and customize offer letters, ensure compliance with NZ employment laws, and manage the hiring process
- Hiring Managers: Review and approve offer details, set job-specific terms, and provide input on role requirements
- Legal Teams: Review complex offers, ensure legal compliance, and address any specialized terms or conditions
- Job Candidates: Review, negotiate, and accept or decline the offered terms of employment
- Company Directors: Approve senior-level offers and sign letters for executive positions
- Recruitment Agencies: Often facilitate the offer process and communicate between parties
How do you write an Offer Letter?
- Position Details: Confirm exact job title, department, reporting relationships, and work location
- Compensation Package: Gather salary details, benefits, KiwiSaver contributions, and any performance-based incentives
- Employment Terms: Define start date, hours, leave entitlements, and trial period if applicable
- Legal Requirements: Check current NZ employment standards and minimum wage rates
- Company Information: Include correct legal entity name and relevant policies
- Approvals: Get sign-off on salary and terms from relevant managers before drafting
- Document Generation: Use our platform to create a legally compliant offer letter template
What should be included in an Offer Letter?
- Company Details: Full legal business name, address, and employer identification
- Position Information: Job title, employment type, reporting structure, work location
- Compensation Terms: Salary/wage rate, payment frequency, KiwiSaver details
- Employment Status: Full-time/part-time hours, trial period if applicable
- Start Date: Proposed commencement date and any conditions
- Basic Conditions: Leave entitlements, work hours, breaks as per NZ law
- Acceptance Method: Clear instructions for accepting the offer
- Legal Compliance: Reference to full employment agreement to follow
- Signature Block: Space for employer and employee signatures with dates
What's the difference between an Offer Letter and an Employment Letter?
An Offer Letter differs significantly from an Employment Letter in several key aspects under New Zealand employment law. While both documents relate to employment relationships, they serve distinct purposes and are used at different stages.
- Timing and Purpose: Offer Letters initiate the employment relationship by proposing specific terms, while Employment Letters confirm existing employment status for third parties
- Legal Weight: Offer Letters create preliminary contractual obligations when accepted, while Employment Letters simply verify current or past employment
- Content Scope: Offer Letters detail specific salary, benefits, and conditions, whereas Employment Letters typically just confirm position and tenure
- Required Detail: Offer Letters must include comprehensive employment terms under NZ law, while Employment Letters can be brief verification documents
- Primary Users: Offer Letters are exchanged between employers and potential employees, while Employment Letters are usually provided to banks, landlords, or immigration officials
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