An offer of employment is not a particularly complex document, but it can impact heavily on the probability of a candidate accepting an offer, or not. If drafted carefully, it can also reduce hiring risk and provide an added advantage if something goes wrong. Some of this is outlined by the South African Department of Labour, but there are a few things that could improve the quality of the document even further.

It is important that the offer of employment contains all the information that a candidate would need to make an informed decision. This will avoid any surprises or unhappiness when the new employee starts.

For this reason we recommend that the following information should be included in any offer letter:

Offer of Employment Contents:

Employer and Candidate Details:

• Company’s full name
• Company address and contact details
• Candidate’s name
• Candidate’s job title

Employment Details:

• Place of work
• Start date
• Working hours and days of work
• Duration of the probation period
• For Fixed Term Contracts: The duration and/or termination date of the fixed term contract

Payment Details:

• The salary of the employee
• All compulsory deductions (e.g. Medical Aid, Pension- or Provident Fund)
• Any other payments (e.g. Commission, Profit Share, Short-Term Incentives, Long-Term Incentives)
• Any payments in kind and their value (e.g. Cellphones)
• The frequency of the payment
• The date that payments will be made

Note: It is definitely worth it to produce a mock payslip for a candidate employee and to present this to them along with the offer letter. This will again ensure that there are no surprises when they receive their first salary.

Leave Details

• The number of annual leave days that the candidate would be entitled to.
• Any special rules with regards to the taking of leave (some business only allow leave over certain periods of the year).
• Any other leave that falls outside of the scope of the Basic Conditions of Employment Act (i.e. Duvet Days, additional Family Responsibility Leave etc.)

Notice Period

• Period of notice required for termination

Expiration of Offer

• The period of time for which the offer would be valid (e.g. If the Offer of Employment is not accepted within 48 hours, it will no longer be valid).

Conditions of the Offer

• A clause stating that the offer is conditional to the successful completion and positive outcome of criminal-, qualification- or other checks.

Acceptance of Offer Letter

• A short section where the candidate employee can confirm his/her understanding and acceptance of the offer.

Sample Offer of Employment: Download

You can download a sample offer letter that we often recommend to clients. The sample is not exhaustive and there are many situations that it would not be entirely appropriate for, but it’s a good start.

If you or your business need assistance drafting your offer letter, or would like us to review yours, please contact Martin Janse van Rensburg: martin@talentmagnet.co.za