How to Read a Job Offer Letter
Career is the most important aspect that students consider after completing their degrees. Every individual has different priorities, which is the cornerstone to shape a successful career. However, things get a little trickier when students search for a j
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Personal Finance
- Swati Tripathi
- 2022-12-10
- 03 min read
#first job
#offer letter

We understand the competitive market scenario, and gruelling interview sessions can be exhaustive. But what about the career priorities you have visualised about your job? Yes, there are certain prime concerns which you should read in your job offer letter before signing it carelessly. There might be a few red flags in the offer letter which indicate the warning signals.

So, before signing the dotted lines, do some research to understand the implications it will have on your job priorities. 

Job Designation and Responsibilities

When you receive the offer letter, your primary concern is to check your job responsibility. This will clarify your role in the organisation and help identify the discrepancies. Do make sure that the responsibilities are clearly defined in the offer letter. Similarly, your job designation will further help to elaborate the type of work you will be doing with the position given in the organisational hierarchy of the company. This is crucial because in future, if your job role is altered you have the matter in writing. 

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Salary Offer and Potentials

Make sure the compensation package you discussed over the phone should match your offer letter. Many a times organisations have a complex salary structure. In such a case the total salary is distributed into various head. These heads can be total salary, net salary, conveyance allowance, travel allowance, pension, provident funds, and others. These heads might be inclusive in your cost to the company or CTC. However, this is not the in-hand salary which you will receive every month. Evaluate the aspects of CTC and in-hand salary while getting an offer letter. Another aspect is the salary potential of a particular designation and market compensation for similar roles in other industries. If there is some inaccuracy, feel free to discuss it with the HR manager. 

Joining and Relieving Date

Pay close attention to the joining date, especially when you are switching an organisation. The date of joining needs to be mutually agreed upon. Before joining the new company, you must get access to a relieving letter from the previous employer. Typically, it involves a lot of paperwork like getting a formal sign off and no dues certificate from your immediate management.

Once all formalities are done, you are set to join the new organisation. 

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Benefits and Bonuses

The salary component is the main concern, but organisations have their own benefit and bonus schemes for the employees. You will surely love to see the figures for the annual salary that also comprises the bonus. There are also certain benefits from your health insurance, profit sharing, travel, and leisure that add to your overall remuneration package.

All these details are generally specified in the letter. A denial of any agreed benefit can be regarded as a breach of contract.

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Leaves and Holidays

The most ignored aspect in a job letter is the leave and holiday policy of the organisation. It’s best to discuss the number of leaves and holidays allotted to the employees in a month or year to maintain a work-life balance. Today, many millennials get paternal leaves, maternal leaves, birthday leaves, even period leaves for female employees. This enables you to plan the personal life systematically without compensating it with your salary. 

Terms and Conditions

Job applicant typically needs to check the terms and conditions of the company. It may include several provisions like non-compete clause, non-solicit clause, non-disclosure agreement, etc. The candidates have to understand its severe implications before simply agreeing to sign the letter. For instance, the non-compete clause will restrict the employee to seek a job in another organisation within the same geographical area for some time. Likewise, a non-solicit clause forbids the employee to influence the workers, clients, or customers to leave the employer and to follow you or our new employer.

In a non-disclosure agreement, the employee should keep all sensitive information confidential. There can be other terms and conditions that employees should have a thorough glance after receiving the offer letter. 

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Q. How long an offer letter is valid to get a job?

Typically, an employer can expect you to join the organisation within a week. They will specify the proposal through phone call or email, or the offer letter will have the deadline date. 

Q. What does CTC mean in your salary?

CTC in your salary refers to the gross compensation a company is bearing towards an employee. In comparison, the salary you are receiving is the net salary or take-home. 

Q. Is there any chance to negotiate on the offer letter?

Read your offer letter carefully to detect the red flags before signing it anyway. If you have any issues, you can negotiate them directly with the recruiter. 


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