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Offer of Employment: Part 3 – Term Employees

10 mins read

This article is written to provide the reader with an understanding of what should be included in a Term Employee’s offer of employment, and to give businesses an offer template to download and use.

When putting together your offer of employment for Term Employees, it is important to understand the employee classification and what the term employees are generally eligible to participate in for certain company run incentive and benefit programs.

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.

Term Employees are full-time/part-time employees with an expected end date, generally longer than 12 months. Since these employees are required for a longer period of time, but not permanently, they tend to receive the same treatment as permanent employees. They can be either salary or hourly paid. This employment type is not as common, but worth mentioning, especially for organizations that have various projects going.

We will take you through the template structure (that is available for download) 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. Included in this article’s downloads are instructions to what other information can be captured under the Headings.

In the template, we offer general examples of technical terminology within 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 depending on your company’s programs, practices, and requirements. If you require assistance for your written content, please reach out to a BIG representative!

Template
Before you begin outlining the details to 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 to whom the offer letter is intended for with a brief description outlining the employment classification, FTE (Full-Time Equivalency), for the company they will be employed by. You can add in gender pronoun salutations such as Mr., Ms., 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.

Position Section
Under this section is generally where details are provided regarding the position’s title, start date, expected end 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.

Compensation Section
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 is 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.

Vacation Section
In this section, you will confirm what the employee’s vacation entitlement is and how it was accredited to them.

Benefits Section
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.

Acknowledgment Section
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’s and candidate’s signatures are located 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 term 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 4 of this series when we discuss what information is generally included in a Temporary Employee’s Offer of Employment.

Download the Offer of Employment: Part 3 – Term Employees – Template and Guide Package (zip).

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Visit our Resource Library for all available downloads.

If you require assistance with any of the guides, forms or templates, please contact a BIG representative.

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