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Employment Offer Letter

Educational employment offer letter shell: role, salary, equity, vesting, IP, at-will/contract language. Not a legal document — brief your lawyer with it.

Last updated June 16, 2026

What it is

A starting-point offer letter you adapt to your jurisdiction with a qualified employment lawyer. Covers the clauses founders most often forget (equity acceleration on change-of-control, IP assignment, the at-will vs notice-period distinction by jurisdiction).

When to use it

Every employee hire, before any verbal acceptance creates ambiguity. Send the written letter within 48 hours of the verbal offer — gaps between verbal agreement and written documentation are where most equity / start-date disputes originate.

Important: Educational only. Not a legal document. Employment law differs sharply between jurisdictions (US at-will vs UK/EU notice-period regimes vs Asian fixed-term defaults). The exact phrasing of equity, IP, and termination clauses must be drafted by a qualified employment lawyer in the relevant jurisdiction. Do not use this template as a final offer document.

The template

# [Company Name] — Offer of Employment

**To:** [Candidate Full Name]
**Date:** [Date]
**Position:** [Role title — e.g., Senior Software Engineer]
**Reporting to:** [Manager name and title]
**Start date:** [Date]
**Location:** [Office / Remote / Hybrid + city]

---

Dear [Candidate first name],

We're delighted to offer you the position of [Role title] at [Company Name] (the "Company"). This letter sets out the principal terms of your employment, subject to your acceptance and any conditions noted below.

## 1. Compensation

**Base salary:** [$XXX,XXX] per year, payable [monthly / bi-weekly] less applicable tax and statutory deductions.

**Bonus / variable:** [Eligible for annual performance bonus targeted at X% of base, subject to Company and individual performance. Discretionary, not guaranteed.] OR [No variable component at this time.]

**Equity grant:** Subject to Board approval, you will be granted [N] [Stock Options / RSUs / EMI Options (UK) / ISOs (US)] under the Company's [Plan Name]. The grant will:

- Vest over **[4] years** with a **[12]-month cliff**, vesting monthly thereafter.
- Have an exercise price (if options) equal to the fair market value at the grant date as determined by the Board.
- Be subject to the full terms of the Company's Equity Plan and your Option / RSU Agreement.
- Include single-trigger acceleration of **[0% / 25% / 50%]** and double-trigger acceleration of **[50% / 100%]** on a change of control, as defined in the Plan.

**Other:** [Sign-on bonus $X repayable in full if you leave within 12 months / Relocation allowance up to $X / N/A.]

## 2. Benefits

You will be entitled to the standard benefits package, which currently includes:
- **Pension / 401(k):** [Auto-enrolled at X% with Y% Company match] / [3% employer contribution under UK auto-enrolment].
- **Healthcare:** [Medical, dental, vision via Company plan — eligible from start date] / [Private healthcare via Vitality from start date].
- **Holiday:** [N days] paid annual leave plus public holidays.
- **Sick leave / parental leave:** As per the Employee Handbook (link in onboarding pack).
- **Equipment:** Company-provided laptop and home-office stipend of [$X].

Benefits may change from time to time as set out in the Handbook.

## 3. Working hours and location

Standard hours: [Mon-Fri 9am-6pm in your local timezone, with flexibility for asynchronous work]. The Company operates [Remote-first / Hybrid (X days in office) / Fully in-office] working.

## 4. Probation

The first **[3 / 6] months** will be a probationary period. During probation, either party may terminate with [1 week / 2 weeks] written notice.

## 5. Notice period and termination

After probation, either party may terminate this employment with **[1 / 3] months'** written notice (or as required by statute, whichever is greater).

[**US at-will language (if applicable):** Notwithstanding the above, this employment is at-will and may be terminated by either party at any time, with or without cause, subject to the notice provisions above. Nothing in this letter creates a fixed term of employment.]

[**UK / EU language:** Termination for gross misconduct may occur without notice. The Company reserves the right to make payment in lieu of notice.]

## 6. Confidentiality and IP assignment

You agree:

- All confidential and proprietary information of the Company belongs to the Company and may not be disclosed during or after employment.
- All work product, inventions, code, designs, and other intellectual property created in the course of your employment (or using Company resources) is assigned to the Company on creation, subject to applicable statutory carve-outs (e.g., personal projects on personal time using personal resources; UK Patents Act §39).

A separate IP Assignment and Confidentiality Agreement will be provided for execution alongside this letter.

## 7. Non-compete and non-solicitation

[**Standard moderate clause:** During employment and for [6 / 12] months after termination, you agree not to (i) solicit any employee of the Company to leave, or (ii) solicit customers of the Company for a competing business in the same geography. Enforceability of non-competes varies by jurisdiction — this clause is intended to be the maximum the local jurisdiction permits and will be reduced by a court if found overbroad.]

## 8. Right to work

This offer is conditional on you providing evidence of your right to work in [country]. The Company is not able to sponsor work authorisation for this role [/ The Company will sponsor X visa from start date].

## 9. Background checks and references

This offer is conditional on satisfactory completion of: [criminal record check / right-to-work check / two professional references / DBS check (UK)].

## 10. Accepting this offer

To accept, please sign and date below and return by [date — typically 7 days from offer]. This offer lapses on that date unless extended in writing.

We look forward to working with you.

[Founder name]
[Title]
[Company Name]

---

**Signed:** _______________________
**Name:** [Candidate name]
**Date:** _______________________

---

## Notes for the founder (delete before sending)

- This is an educational shell. Have a qualified employment lawyer in [your jurisdiction] draft your actual offer template — particularly the at-will / notice / non-compete language, which is jurisdiction-specific and changes annually.
- Equity grants are subject to Board approval. The letter creates an obligation to grant; the Board minutes create the actual grant. Run the Board approval within 30 days of start date.
- IP assignment should ideally be a separate document executed on day one, not bundled into the offer letter, to provide a stronger chain of title at exit diligence.
- Single-trigger acceleration (vesting accelerates on change of control alone) is rare and investor-unfriendly. Double-trigger (acceleration on CoC + termination without cause) is standard.
- Pay attention to UK-specific clauses if hiring there: implied terms (e.g., mutual trust and confidence), Working Time Regulations, statutory sick pay, family-leave rights, GDPR data-processing notice.

Common mistakes

  • Verbal offer with no written follow-up — creates ambiguity about start date, salary, and equity that's hard to unwind later
  • Promising equity in the offer letter without Board approval — creates an obligation you can't yet fulfil; specify 'subject to Board approval'
  • Using a US at-will template in the UK / EU (or vice versa) — entirely different legal regimes
  • Skipping a separate IP assignment agreement — exit diligence will find this gap and you'll be re-papering at the worst possible moment
  • Single-trigger acceleration unless investors have specifically agreed — most term sheets explicitly disallow it

Related hub

Startup Hiring

Related resource

Founder Legal Checklist