Letter of Intent to Hire Template

Contractors are different from at-will employees. Specifically, the terms of at-will employment are usually set by law. Contractors, on the other hand, have their job terms set by contracts. These contracts often begin with a letter of intent.

What Is a Letter of Intent to Hire?

A letter of intent to hire usually expresses an employer’s intent to hire a contractor. It often sets out some preliminary terms and may state the terms that remain to be negotiated.

How It Differs From a Job Offer

Contracts require mutual assent to be valid and enforceable. Mutual assent involves offer and acceptance. An offer includes clear terms that, when accepted, create a binding employment contract.

A letter of intent to hire is usually written so that it does not constitute an offer. Instead, letters of intent are typically written either as a term sheet or an invitation to negotiate the terms.

Whether It's Legally Binding

Whether a letter of intent is binding usually depends on its wording. If written properly, a letter of intent to hire should not be binding. If it were binding, it would constitute a job offer rather than a letter of intent. Thus, it is important to use the right wording to avoid turning a job letter of intent into a job offer.

What to Include in It

Beyond the general rules on what to include in a letter of intent, a letter of intent to hire should express the desire to hire the contractor. It should set out any terms of the employment and identify any terms that remain to be negotiated. For example, it may state that the company wishes to hire the contractor for a specified project upon negotiating and executing a final contract outlining the deadlines and pay.

How to Write One

A letter of intent should identify the employer and the contractor. It should also state any conditions for completing the contract. Some common conditions include:

• Negotiating the final contract terms
• Signing the completed employment contract
• Passing a background check
• Completing onboarding
• Finishing a probationary period

It should explicitly state that it does not constitute an offer and that it is subject to the final contract terms.

What the Candidate Does Next

After receiving the letter of intent to hire, a candidate will negotiate the final terms of the employment agreement. They will also fulfill any other steps needed to secure employment. At this point, they are not guaranteed employment. Instead, they only have an invitation to negotiate for employment.

Use the Right Letter of Intent to Hire for Your Purposes

An improperly worded letter of intent to hire can constitute a job offer. To avoid inadvertently hiring someone before completing a final employment contract, use the right form from ConsumerShield’s guides and templates.