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A letter of intent to hire might be either binding or non-binding (read more about binding force in our general section about letters of intent). In the first case, it acts as an employment contract and does not create a need to create a more comprehensive hiring document in the future. If the letter of intent to hire is non-binding, it means that the parties should develop and sign a separate employment contract that will include all the details of the work relations between the employer and employee. However, it is most common to create a non-binding intent-to-hire letter.

Why Create a Letter of Intent to Hire?

There are a few reasons why an employer might want to create an intent-to-hire letter. This document can be used as a way to express the employer’s interest in hiring the employee, and it can also be used to provide the employee with some basic information about the employment offer.

Creating a letter of intent to hire can also be a good way to protect the employer’s interests. This document can be used as evidence in a court of law if there is a dispute between the employer and employee.

How to Fill Out a Letter of Intent to Hire?

A sample letter of intent to hire will contain the basic details of the future work relations.

Step 1 – Information about the company and date

In the top left corner of the letter, the company hiring a candidate should be identified. Below that, the date that the letter is effective should be shown.

Step 2 – Intention of the prospective employer

The letter of intent to employ should be written in a business letter format, with an opening, main body, and closing. It can be separated into sections regarding each condition of a candidate’s employment, or written as one whole letter.

Regardless of format, the letter should begin with “Dear [name of candidate]”, and then go on to say that the company intends to hire the candidate as stated in the letter. A job title should be mentioned here as well.

Step 3 – Form of candidate’s employment

The next section should explain whether the job offer is full-time or part-time.

Step 4 – Information about salary or wages

This part of the letter of intent to hire should tell that the candidate will be paid a specific amount per year or month, and how often the payments are made (weekly or every other week).

Step 5 – The date of the beginning of the candidate’s employment

The letter of intent should mention the start date, as well as what responsibilities the new employee will have.

Step 6 – Responsibilities

Next, the letter of intent to hire has to list the responsibilities of the prospective employee.

For example, if the letter offers a job of a sales and marketing manager, it should state that the candidate will need to build marketing and sales strategies, track market developments, create sales plans, and maintain customer relations.

Step 7 – Time off work

The letter should further mention how much time off a person can take during their work year.

Step 8 – Probation period

The letter might state that the company is not required to give prior notice if the candidate is let go during the probation period, according to the letter. The timeframe that the candidate would be paid if they fail the probation period should also be specified in the letter of intent.

Step 9 – Termination of employment

The letter of intent should make both a company and a prospective employee give notice if they are going to end the employment relationship. The candidate should let the company know if they are leaving, and the company should inform the candidate if they are firing them after the trial period. The letter might also mention that the candidate will be expected to work until their official last day at work.

Step 10 – Non-compete clause

In some letters, the company will ask that the candidate not hire their employees for a certain time after leaving the company, or contact other clients or customers.

Step 11 – Binding force

If the company wants this clause in the letter, they have to indicate that the agreement will be legally binding.

Step 12 – Signatures

The company representative and candidate should sign their names in the letter of intent, after which the candidate will receive the letter.

What Should Be Included in a Letter of Intent to Hire?

The letter of intent to hire should include the following information:

  • The employer’s name and contact information
  • The employee’s name and contact information (it should be clear from the letter that it is intended for the prospective employee)
  • The date of the letter
  • The position that the employer is interested in hiring the employee for (the level of commitment should be specified here as well, namely, part-time job or full employment)
  • A brief description of the duties of the position (it is prudent to list all of the possible duties and responsibilities to avoid possible misunderstandings in the future)
  • The salary the employer is willing to pay (the frequency of payments should be included as well)
  • The benefits that the employer is willing to provide
  • Paid/unpaid time-off (the conditions under which the time off can be taken have to be included)
  • The probation period (if one is implied, the letter should specify its length and consequences of not meeting the employer’s standards)
  • The start date of the employment
  • The duration of the employment
  • Non-compete clause (it should be included if the employer doesn’t want the potential employee to cooperate with the company’s competitors for a specified amount of time)
  • The employer’s signature

Is a Letter of Intent to Hire a Binding Document?

Whether or not the letter is considered binding will depend upon the provision included in the letter. The employer might decide to make it binding but it might also be non-binding if they decide so. A typical situation would be a letter of intent to hire not binding any of the parties and becoming binding after the employment contract is signed by both of them.

The Bottom Line

A letter of intent to hire is typically a non-binding document, which means that either party can back out of the agreement at any time. However, this document can be used as evidence in a court of law if there is a dispute between the employer and employee.

For your convenience, you can make use of the sample letter you can find on our website.