HR glossary · Hiring and contracts

Offer letter

An offer letter sets out the job, pay, hours, start date and key terms you are offering. Once signed, it often becomes the employment contract.

Also called: job offer letter, letter of offer, employment offer

What offer letter means

An offer letter is the written job offer you give to the person you want to hire. It sets out the main terms: job title, start date, pay, hours, where the work is done, whether the job is permanent, seasonal or fixed term, and any conditions the offer depends on.

For many small businesses, the signed offer letter is the employment contract. Even if you plan a longer contract, the letter is often what a court, an employment standards officer or the employee will look at first if there is a disagreement. Write it carefully.

In Ontario, since 1 July 2025, new hires must get their basic job terms in writing before their first day. An offer letter is a simple way to do that, in any province.

How it works

Include the basics: your business's legal name, the employee's name, job title, who they report to, start date, work location, regular hours or how shifts are set, pay (hourly rate or salary) and pay frequency, vacation, and any benefits. If the job is seasonal or fixed term, say so and give the end date or season.

Check every term against your province's employment standards. Pay must be at least the minimum wage where the work is done. Vacation must meet the minimum. These are minimums: you can offer more, not less. A term that offers less than the law requires does not take away the employee's right to the minimum.

If you want a probation period, say how long it is. Most provinces do not set a standard probation period; what they set is the point after which written notice is owed to end employment without cause, such as 3 months in Ontario and Nova Scotia, 90 days in Alberta and Prince Edward Island, and 6 months in New Brunswick. Keep any probation period no longer than your province's point unless you have had advice.

Be careful with termination clauses and restrictive clauses, such as non-competes. Poorly worded termination clauses can fail, and Ontario's employment standards law bans most non-compete agreements. Get advice before adding these.

Ask the person to sign and return a copy before the start date, and keep it in their file. If you change a key term later, put the change in writing and get their agreement.

Is it the same in every province?

Offer letters are used the same way across Canada, and each term must meet the employment standards of the province where the work is done. Ontario requires new hires to get basic terms in writing before the first day (since 1 July 2025); the minimums for pay, vacation and notice differ by province.

Example: A brewery writes a clear offer

Ben runs a 13-person craft brewery in Guelph, Ontario, and is hiring a packaging line worker. His offer letter states: start date 5 January 2027, $19.50 an hour, 40 hours a week on day shift, paid every two weeks, 2 weeks' vacation with 4% vacation pay, and a 3-month probation period.

He checks the rate against Ontario's $17.95 minimum wage, sends the letter a week before the start date so the worker has the terms in writing before day one, and asks the worker to sign and return a copy.

Hollis drafts the letter

Hollis, part of the Staffkin HR Suite, drafts province-specific offer letters for your approval and never sends them on its own. Free offer letter templates are also available.

Try Hollis live

Free tools and guides for this

Questions about offer letter

Is an offer letter legally binding in Canada?

Once the candidate accepts it, an offer letter usually forms the employment contract, or part of it. Its terms bind both sides as long as they meet employment standards.

What should an offer letter include?

Job title, start date, pay and pay frequency, hours, location, vacation, reporting line, any probation period, and any conditions such as a police check.

Do I have to give a new hire their terms in writing?

In Ontario, yes: since 1 July 2025, new hires must get basic terms in writing before their first day. In other provinces it is still the safest practice.

Can I change an offer letter after it is signed?

Only with the employee's agreement. Changing a key term such as pay or hours without agreement can cause a dispute.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.