Soar to Success May2021

Offer Letters vs. Employment Agreements: Which One Should You Use? By Maritza Nelson, JD Hiring a new employee is an exciting time for any business. But it can also be a legal minefield for small businesses, especially when you don’t have a dedicated HR department. Once you find your next great hire, should you send them an offer letter or an employment agreement? Offer Letters Rule 1: Don’t Make Promises An offer letter confirms an offer of employment but is generally not a binding contract. However, you can inadvertently turn anoffer letter into a binding employment agreement by using language that suggests apromise. Often, this comes in the formof language suggesting the company intends to have a long relationship with the new employee or always pays a year-end bonus. These types