Things you should check before accepting an offer letter

A new job opportunity is meant to excite anyone irrespective of the age. Offer letter, however formal it may be, comes in with new opportunities and policies of the organization an employee is to start his/her new journey with. Offer letter formats define the key area of responsibilities the organization is going to assign to it newly hired employee 

Having said that it is also important for the employee to understand and acknowledge certain elements before accepting an offer from any organization.

Let’s dig a little deeper and discuss a few such elements an employee should check before accepting any new opportunity:

Job description

The very first thing that a new joinee should acknowledge even before accepting an offer is the job description. Job description includes employees work schedule and responsibilities assigned as per the designation of the employee. It includes the description of overtime policies and payouts according to the extra hours rendered to the organization.

Compensation and benefits

Each organization has a different set of rules and policies for benefits for employees. Offer letter consists of the information a new joinee should be aware of. It explains the contribution made by the employer for ESIC and Provident fund, the amount deducted for provident fund. Medical benefits and insurance for the employee and his/her family. It also explains the equity and gratuity amount that an employee will receive after retirement or in case of any unfortunate event that might hamper the employee’s career and his personal life.

Acknowledgement of the employee

Offer letter initiates a contractual confirmation. It comes along with an agreement between the employee and the employer which implies that the terms and conditions of employment. It notifies the employee about the exit procedure in case the employee wants to change the organization for a better opportunity. It is essential for the employee to understand the format of the offer letter to acknowledge the responsibilities that are associated with the designation offered.

A confidentiality agreement

When an organization hires an employee it assigns the responsibility of the organization on the employee. He/she had to deal with the valuable information of the organization. Signature of the employee is considered as an acknowledgement of the clause that the employee is not allowed to disclose this information to anyone other than his/her colleague. It encloses a deal of trust that the employee and the employer would not disclose any information regarding employee personal information and organizations valuable data. Any such disclosure of information will lead to the termination of the employee and even a legal suit against the employee. 


The salary break-up that includes the basic amount, dearness allowances, HRA, i.e house rent allowance, conveyance allowance, medical allowance and the variable components is explained in the offer letter. As the cost to company amount differs from the in-hand/take-home amount of the employee, it is important to understand the fixed and the variable amount mentioned in the offer letter. It explains the month-end amount and the per annum income of the employee including the benefits and the allowances provided by the company.


The offer letter is attached with a form seeking permission from the employee for verification and background check. This is important because it ensures that the employee is eligible for the designated position and has a trustworthy record to grant access to the valuable data of the organization. This verification might invade the right to privacy of an employee hence formal permission to enquire about the employee’s personal data legalizes the procedure for the human resource department. It is essential for an employee to be aware of these clauses in the offer letter and acknowledge these clauses to proceed with the onboarding procedure.

An offer letter comprehends a better understanding of the organization. In spite of the verbal contact, the employee should be aware of the laws and policies of the organization and accept an offer only if he/she is in the agreement of the policies and is willing to work under the provided circumstances. The HRM ensures that they include the required details in the format of the offer letter. 

Leave a Reply