A letter of intent to hire is a letter written by an employer to a potential employee that they are looking to employ in their organization. The letter highlights the interest of the company to onboard the prospective employee and provides other key details about the position being offered to the employee, such as their duties and responsibilities, the salary amount, the duration of their employment, the start date, and any other terms and conditions that come with the position.
The letter of intent to hire is usually legally non-binding, and the potential employee can decide to either accept or decline the offer. However, if the employee agrees and signs the employment contract, the letter of intent to hire becomes binding.
Key Elements to Include in Letter
There are essential elements that must be included in any letter of intent to hire.
Such elements include:
Anyone involved included in the letter should be included, and a reference of how they are referred to in the letter is mentioned when defining the parties involved. This is important as it clarifies whom the letter is meant for, thereby creating no room for doubts.
The type of job and level of commitment required for the job should be defined in the intent to hire letter. This will help the potential employees gauge whether their schedule will allow them to work as per the requirements.
For example, one may consider using a phrase such as
“The employee’s work shall be considered full-time/ part-time or on a freelance basis.”
The letter should also state the salary and any benefits that the employee stands to get upon accepting the offer. The amount should be clearly indicated in the letter in terms of numbers as well as words.
Other than stating the payment amount, the frequency of payment should also be mentioned in the letter. Payment duration usually varies from one company to another and as such should be categorically mentioned in the letter.
The letter of intent to hire should inform the potential employee of the specific date their employment is set to commence should they accept the offer.
“The company intends to have the employee begin employment no later than 1st May 2021.”
The letter should also outline all the duties and responsibilities of the potential employee. Everything they will be required to do should be clearly listed in the letter to avoid any future inconveniences.
Another key item that must be included in the letter is the time-off. Under what conditions will the employee be allowed to take time off must be specified. The letter should also mention if such time-offs will be paid or unpaid to ensure that both parties are on the same page.
The probation period is the duration in which the employee’s work shall be under review. During the probation period, if the employee fails to meet the set standards, the employer may decide to terminate their employment with or without notice, according to the company’s policy. The probation period start and end date must be specified in the letter.
The termination clause included in the letter of intent to hire must be in line with the company’s termination policy. If the employee is awarded a notice period following their termination, such information must be included in the letter to help the potential employee understand situations that warrant their termination and how such terminations will be issued.
A non-compete clause is a clause that prohibits the employee from working for your competitors for a given time frame. It acts as a temporary injunction barring the employee from working, sharing confidential information, or any other proprietary information or trade secrets with the competitors.
In most cases, the letter of intent to hire is usually considered non-binding; however, in some cases, the letter may be considered binding. The letter must clearly define whether the letter will be considered binding or non-binding.
Additional terms and conditions
If there are any other terms and conditions that the employee should be aware of before signing the document, such terms and conditions must be included in the document.
Letter of Intent to Hire Template
From [Employer’s Details]
__ [City, State, Zip Code]
Dear ___, [Employee’s Name]
I. The Parties. This letter represents confirmation by _ [company name] to hire, ____ [Employee’s name], herein referred to as “The Candidate or Candidate,” made by _ [Employer’s name] herein referred to as the “Principal or The Employer,” together referred to as “Parties” with a mailing address of _ [Mailing address i.e., the street, city, state] as __ [Job title], and to confirm the broad terms of the employment.
II. Commitment. The candidate’s work shall be considered _ [part-time, full-time, etc.]
III. Pay. The Candidate shall be paid a salary amounting to $______________ [amount per year]
IV. Payment Period. The Candidate shall be paid every [duration of payment, e.g., weekly, daily, bi-weekly, monthly, etc.]
V. Start Date. The Candidate shall be required to start their employment no later than ______ [Start Date]
VI. Responsibilities. The candidate shall be responsible for ____ [Mention all the duties and responsibilities of the candidate]
VII. Time Off. The Candidate will be allowed to take a maximum time off of [No. of days] off per year. The day’s off shall be [Paid/Unpaid]
VIII. Probation Period. The Candidate herein agrees that they may be terminated within the first [No of days] days of their employment. In their absolute discretion, the Principal may terminate the Candidate’s employment for any reason without cause or notice.
IX. Termination. The Candidate can terminate their employment at any time by giving notice no less than [no of days] to the employer.
X. Non-Compete. Should the Candidate be terminated for whatever reason, he or she will not be able to [mention everything that the employee shall not be able to do after their termination]
XI. Binding Effect. This letter shall be considered [binding/non-binding]
XII. Additional Terms and Conditions. Include any other terms and conditions if applicable.
Principal’s Signature: ____
Print Name: ___
Candidate’s Signature: ____
Print Name: _
Sample Letter of Intent to Hire
Valley Arcade 1762
NY, 972 New York
24th March 2021
I. The Parties. This letter is to confirm ABCs Intent to employ Michael Richards herein referred to as “The Candidate” made by John Doe herein referred to as the “Principal” and together referred herein as the “Parties” with a mailing address of NY, 972 New York, as a Sales and Marketing manager, and to confirm the broad terms of our previous discussions.
II. Commitment. The Candidates shall be considered full-time.
III. Pay. The Candidate shall be paid a salary amounting to $65,000 per year.
IV. Payment Period. The Candidate shall be paid every end of the month.
V. Start Date. ABC intends to have the Candidate start their employment no later than 7th May 202
VI. Responsibilities. The Candidate shall be tasked with overseeing the sales and marketing progress, creating new leads, and creating reports on sales made.
VII. Time Off. The Candidate will be allowed to take a paid time off of 21 days per year.
VIII. Probation Period. The Candidate may be terminated within the first 60 days of their employment by ABC with or without notice.
IX. Termination. The Candidate has an option to terminate their employment any time by giving the Principal a notice of not less than 30 days.
Consequently, ABC may terminate the Candidate’s employment at any time for any reason by issuing the Candidate with a 30 days’ notice.
X. Non-Compete. The Parties agree that if the Candidate’s employment is terminated, they will not be able to hire, work for direct competitors, or reveal any trade secrets or proprietary information for a period of three months following the date of their termination.
XI. Binding Effect. This intent to hire letter shall be considered NON-BINDING
24th March 2021
Coming up with a letter of intent to hire from scratch can be hard, especially if it is your first time doing so. This is why we are providing you with free easy to use downloadable templates that you can download and use anytime. Simply click on a template that suits you best, download, customize, proofread, and you are good to go.
Frequently Asked Questions
How long is a letter of intent to hire good for?
The letter of intent to hire is usually good for the duration before the start date of employment.
Can you back out of the letter of intent to hire?
You can easily back out of a letter of intent to hire in most cases since it is non-binding in nature. However, in some cases, for instance, if the employee has already signed an employment contract, they cannot back out.