This article is written to provide the reader with an understanding of what should be included in a Permanent Employee’s offer of employment and to give businesses a template to download and use.
When putting together your offer of employment for Permanent Employees, it is important to understand the different classification types and what they are generally eligible to participate in for company run programs (total rewards).
If you need a quick reference to the different classification types, please feel free to read Part 5.3 of our series on Setting Up Payroll for more on Employee Classifications, where we compare and discuss how they impact employment.
Permanent Employees are full-time or part-time employees who do not have an expected employment end date. These employees are generally eligible to participate in all company run programs, and are either paid a salary or hourly wage rate.
We will take you through the Offer of Employment template structure (that is available for download below) to provide you with an executive summary of what details are generally captured under each heading that relates directly to the position’s total rewards. Instructions to what other information can be captured under the Headings are included as downloads.
Note: You will notice (*) found in the template. This means that if the information does not relate to a position that you can remove it from the offer letter template for the specific role.
In the template, we offer general verbiage examples of the various components that can impact a position’s total rewards. Please keep in mind that all headings and written content are general and subject for review and edits depending on your company’s programs, practices, and requirements. If you require assistance for your written content, please reach out to a BIG representative!
Before you begin outlining the details of a position’s total rewards, it is best practice to include the date that you are going to extend the offer of employment, the candidate’s full name, and address. If no address is available, use the city and province which the candidate lives in.
Offer and Terms of Employment Section
In this section, you will address the individual whom the offer letter is intended for with a brief description outlining the employment classification, Full Time Equivalency (FTE), for the company they will be employed by. You can add in gender pronoun salutations such as Mr., Ms., or Miss, however, we would like to bring caution to this common business practice, as you are assuming an individual’s gender identity. We recommend sticking to writing the person’s first name.
Under this section is generally where details are provided regarding the position’s title, start date, and what position title the role will report to.
There are some instances where positions are deemed safety sensitive or are part of the vulnerable sector, which may require the candidate filling the position to undergo a pre-employment test or pre-hiring background check. If this is the case, it would be beneficial to outline this and define what the conditions are in order for the candidate to be successfully onboarded.
Under this section is generally where the details are that confirm the pay type, regular pay amount, pay frequency, and/or other payments like bonuses, uplifts or premiums, etc. It would be a great opportunity to also let the candidate know if the position is eligible to receive overtime pay, banked time, or time off in lieu.
If your business has various compensation components, to better define them within this section, we recommend having headers, so the candidate can clearly read what their overall compensation package includes.
Pro Tip: If regular pay is affected by a position’s FTE, it is best practice to outline that their pay has been prorated based on their FTE.
Finally, when you are confirming a position’s compensation, we recommend including a simple clause that states the tax implications that affect their pay. To further protect your company, it is always a good thing to bring awareness to this matter.
Work Schedule Section
In this section, you will let the candidate know what their work schedule/rotation is by including the standard hours or work per week/day, how many days a week they are expected to be at work, and what their allocated time for lunch is.
There are instances where a position may be scheduled and required to be at work for over the maximum annual hours of work (2,080) that is set by the government. If this is the case, in this section, you will confirm how your company administers overtime and scheduling.
If your company allows flexible work arrangements (i.e. start and end times), add it in! This could be the one incentive that a candidate is looking for, especially if they have kids that go to school and need that extra time in the morning to get them ready.
In this section, you will confirm what the employee’s vacation entitlement is and how it is accredited to them.
In this section, you will confirm and summarize the benefits included in the position’s total rewards package such as Group Benefits, Health and Wellness Spending Accounts, Group Retirements Program(s), including other incentives such as Sick Leave, Personal Days, Flex Days, or onsite gym facilities.
Travel and Accommodations Section
In this section, you will confirm and summarize what the employee is eligible to participate in and receive when it comes to travel and accommodations. If the employee is not eligible to participate or your company does not have these programs, then do not include this section in their offer of employment.
To conclude the offer letter template, it would be considered best practice to not only provide a space for the candidate to sign their offer of employment, but also have a disclaimer relating to the offer and terms of employment. By having the candidate sign their agreement and read the disclaimer, they are agreeing to and are aware of the terms and conditions presented in the offer of employment.
If the signing authority and candidate’s signatures are captured on another page (due to content spacing), it would be considered best practice to include what page the signatures are found in the agreement, so it is clear that the signatures found on a separate page are to acknowledge the terms and conditions of this agreement.
Now that you have a general understanding of what can be included in a permanent employee’s offer of employment, please feel free to download the Offer of Employment templates provided. To further assist you in creating one that will work for your business, we invite you to download and view our instructions and example of a completed Offer of Employment.
Stay tuned for Part 3 of this series when we discuss what information is generally captured in a Term Employee’s Offer of Employment.