Frequently Asked Questions

Do I need my employees to sign a formal offer letter?

Yes, you should have every employee sign an employment offer letter memorializing the terms of employment, such as position, compensation, and at-will employment. Several jurisdictions require written documentation of an employee’s compensation terms. Further, memorializing such terms in writing enables the parties to have a written record of what was agreed to, should there later be a dispute as to employment terms. Please note that if the Company later decides to change terms like compensation, it should make sure to have a signed amendment memorializing the revised terms. Please work with your employment lawyer when inserting special terms—like signing bonuses or other bonuses, commission or incentive compensation, and termination benefits (like severance)—into an offer letter, as these provisions require carefully drafted language.