Unlock the Power of eSignature Licitness for Alternative Work Offer Letter in Canada

How to eSign a document: e-signature licitness for Alternative Work Offer Letter in Canada

when recruiting have you ever found yourself using offer letter and employment agreement interchangeably i know i have but there's a big difference between the two terms one that could be confusing at best and legally blinding at worse so what's the difference and how can hr protect the employer from such unintended consequences in this episode of hr faq we'll answer those questions but first let's clarify what we mean by offer letter and employment contract what is an offer letter an offer letter can refer to any communication that employers use to extend a job offer to a candidate if the candidate accepts they will join the company and begin onboarding offer letters may include a number of different details about a given position such as title salary supervisor schedule and expectations of course this isn't an exhaustive list but the main takeaway should be that an offer letter gives a job candidate a much better understanding of the position they've been offered than what they might have gotten from the job description what is an employment contract on the other hand an employment contract sometimes called an employment agreement is a legally binding document that clearly outlines the terms and conditions of employment an employment contract made defined under what circumstances an employee may be fired explain how they might be compensated in addition to their salary or include the details of a severance package should the need ever arise what's the difference and why does it matter the biggest difference is whether or not the communication creates a legally binding promise between employee and employer an employment contract should be binding while an offer letter should not it's important to note that federal law does not require employers to send offer letters to new hires in fact doing so could expose employers to unnecessary risk why a poorly written offer letter could inadvertently form a legally binding contract in such cases an employer could be held to all the terms within the letter even if they only intended to extend an offer to avoid this i would recommend hr develop an offer letter template that uses standardized and agreed upon language don't use words like guaranteed through and for which could inadvertently create the terms of a contract you want to maintain a new higher status as an at-will employee knowing this difference could help employers stay clear of contracts they never meant to make that's it for this hr faq if you want to learn more hr best practices subscribe to our channel and ring the bell to get notifications about the latest hr party of one and hr faq episodes thanks for watching bye [Music]