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What is an Offer Letter?

An Offer Letter is a formal written document that companies use to extend employment terms to potential new hires in Hong Kong. It outlines key details like salary, position title, start date, and basic working conditions, serving as the first step in establishing the employer-employee relationship.

While not as detailed as a full employment contract, an Offer Letter creates important legal obligations under Hong Kong's Employment Ordinance once signed by both parties. Most companies use it to confirm essential terms before preparing comprehensive employment agreements, giving candidates a clear snapshot of their proposed role and compensation package.

When should you use an Offer Letter?

Use an Offer Letter when you've identified a candidate you want to hire and need to formally present employment terms. This document becomes especially important in Hong Kong's competitive job market, where top candidates often receive multiple offers and need clear, written terms to make their decision.

Timing matters - send the Offer Letter promptly after verbal discussions but before preparing the full employment contract. This approach protects both parties by documenting key terms early, helps secure preferred candidates quickly, and meets Hong Kong employment law requirements for written terms. It's particularly crucial for senior roles, positions with complex compensation packages, or when hiring foreign workers.

What are the different types of Offer Letter?

Who should typically use an Offer Letter?

  • HR Managers: Draft and customize Offer Letters based on approved terms, ensure compliance with Hong Kong employment laws, and manage the offer process
  • Company Directors/Executives: Review and approve final offer terms, authorize compensation packages, and sign letters for senior positions
  • Legal Teams: Review letter content for legal compliance, protect company interests, and ensure alignment with Employment Ordinance requirements
  • Job Candidates: Review offered terms, negotiate if needed, and formally accept or decline the position by signing
  • Department Heads: Provide input on role-specific requirements and help determine appropriate offer terms

How do you write an Offer Letter?

  • Position Details: Confirm exact job title, department, reporting structure, and start date with hiring manager
  • Compensation Package: Gather approved salary, bonus structure, benefits, and any special allowances
  • Working Terms: Document work hours, location, probation period, and leave entitlements per Hong Kong law
  • Template Selection: Use our platform's legally-verified Offer Letter template to ensure compliance with local requirements
  • Internal Approvals: Get sign-off from HR, finance, and department head before sending to candidate
  • Final Review: Check all details match verbal discussions and align with company policies

What should be included in an Offer Letter?

  • Basic Employment Terms: Job title, start date, reporting structure, and work location as required by Employment Ordinance
  • Compensation Details: Base salary, payment schedule, bonus structure, and any additional allowances
  • Working Hours: Standard hours, rest days, and overtime arrangements per Hong Kong labor laws
  • Benefits Package: Leave entitlements, medical coverage, MPF contributions, and other statutory benefits
  • Probation Terms: Duration, assessment criteria, and notice period during probation
  • Confidentiality Clause: Protection of company information and intellectual property
  • Acceptance Section: Clear deadline for acceptance and signature blocks for both parties

What's the difference between an Offer Letter and an Employment Letter?

An Offer Letter differs significantly from an Employment Letter in several key aspects. While both relate to employment relationships, they serve distinct purposes and are used at different stages of the employment process.

  • Timing and Purpose: Offer Letters come first, proposing initial employment terms to candidates. Employment Letters confirm existing employment status for third parties
  • Legal Weight: Offer Letters create preliminary contractual obligations once accepted, while Employment Letters simply verify current employment facts
  • Content Scope: Offer Letters detail specific employment terms, salary, and conditions. Employment Letters typically just confirm position, tenure, and basic employment status
  • Target Audience: Offer Letters are addressed to potential employees, while Employment Letters are usually written for external parties like banks or immigration authorities

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