What is a conditional letter of employment?

A conditional letter of employment, or a provisional letter of employment, is a job offer letter that comes with contingencies. It states the job offer is dependent on the candidate’s ability to meet your company’s requirements for employment. If you’re hiring a doctor, for example, you might want to verify that the candidate has a valid medical license in your state.

Although the offer is conditional, it’s still official. If the candidate doesn’t meet the stated requirements, you may be able to withdraw it. This can help protect your business during the hiring process. These offers are typically valid for a set period of time.

Contingencies to include in a conditional offer of employment

You can add a variety of contingencies to a conditional offer of employment. The specific provisions typically depend on the job, industry and company, but may include:

• Background check
• Credit check
• Employment verification
• License or certification verification
• Security clearance
• Reference check
• Drug test
• Medical screening
• Relocation verification
• Confidentiality agreement
• Non-compete agreement
• Education verification

Certain jobs have more conditions than others. If your industry is highly regulated, you may want to verify the new hire’s credentials before they access sensitive or proprietary data. For example:

• If you’re a government contractor, your employees may be asked to earn specific security clearances and pass a detailed background check.
• Jobs, such as electricians, surgeons and lawyers often involve license checks.

Your conditional letter of employment can also include a probationary period. With this contingency, an employee could work for one to six months under close supervision. At the end of the trial period, you can evaluate their performance and decide whether they’re right for the job.

When can you use a conditional letter of employment?

You can use a conditional letter of employment to:

• Secure a preferred candidate. Sending an offer before screening is complete helps you secure preferred candidates before they accept another position.
• Complete required screenings. A conditional letter of employment can prevent delays in the hiring process while giving you time to complete a background check and other reviews. The extra time helps you comply with regulations in industries such as healthcare, education and finance.
• Create deadlines. A conditional job offer typically gives the candidate a specific amount of time to complete required checks. These deadlines help add structure and predictability to your hiring process.

When candidates are in demand, a fast hiring process is important. Conditional letters of employment can give you a competitive advantage. They allow you to send an offer quickly after the final job interview, while the candidate is still active and interested.

Employment information to include in a conditional offer

Your main goal in sending a conditional offer is to help the candidate understand exactly the steps they can take to become an employee. You can list each contingency and give a deadline for completing the task.

The letter can also include:

• Job description
• Work hours and whether the job is salaried or hourly
• Overtime requirements and holiday pay
• Employee pay schedule
• Available retirement accounts and any employer contributions, such as matching
• Available benefits packages, which might include medical and educational benefits or a supplemental unemployment benefits plan
• Incentives such as employee referral programs
• Non-cash fringe benefits, such as vacation time, parking spots and stock ownership plans

Best practices for conditional letters of employment

As you write a conditional job offer, these best practices can help you communicate clearly:

• Be specific: Use clear, detailed language to explain each of your conditions. Instead of saying that a candidate has to get an appropriate security clearance, you can tell them what type and tier the job involves.
• Set reasonable deadlines: Give the candidate enough time to complete all the tasks. If any screening depends on a third party, such as a background check, ask the provider about their expected timeline.
• Give instructions: Tell the job seeker exactly what to do to meet the conditions of the job offer. For example, they may give written permission for you to complete a background or credit check. If your company will handle all the next steps, let them know.
• Request a written acceptance: To document the process, ask the candidate to accept the conditional offer in writing.

Conditional employment offer template

When you’re writing a conditional letter of employment, you can use this template as a guide. Fill in your company’s information to complete the letter quickly, removing or adding details that apply to your business.

[Date]

[Candidate Name]

[Street Address]

[City, State, Zip code]

Dear [Candidate Name]:

Congratulations on securing the next stage of the hiring process. [Company Name] is pleased to offer you the position of [job title], starting on [scheduled start date]. You will be reporting to [Title, Name].

This position is [employment classification, full-time or part-time or other], and pay starts at [insert wage] per [hour, week], to be paid [insert pay period time frame].

The compensation package, which is subject to plan and policy changes, also includes:

• Access to the company’s health insurance marketplace, including dental coverage and a flexible spending account
• Eligibility for benefits, including life insurance and disability coverage for short- or long-term disabilities or long-term care needs (waiting periods may apply)
• 401(k) with matching employer contributions up to [insert figure] annually
• Accruing paid time off (PTO) and company-funded holidays

We would like to extend you an offer of employment, contingent on the completion of the following requirements. Your initial employment will include a probationary period of [30, 60, 90, etc.] days, during which you will not be able to perform [list restricted work activities during probationary period] and will be directly supervised by [Title, Name of supervisor].

This offer is conditional on the completion of:

• Passing a job skills test
• Passing a background check and drug screening
• Obtaining ___ licensure and ___ certification
• Obtaining level ___ security clearance
• Providing proof of eligibility to work in the United States
• Satisfactory reference checks and employment history verification
• Confirmation of education credentials
• Passing a physical exam that evaluates your ability to perform work functions

The offer can be withdrawn at any time and the selection process can be halted for any reason with written notification.

If your employment eligibility documentation for the I-9 form is not returned within three business days of your first day at the company, your employment may be subject to review or end in accordance with the Immigration Reform and Control Act.

While working as a conditional employee, your job duties will be:

[List job duties]

Once you accept this offer, you can begin orientation with the HR team. At that point, you can discuss in detail all of the employee benefits, tour the company and meet your new colleagues. All new hire paperwork will be completed during orientation.

Please accept our offer and return a signed copy to me at [insert email address, fax number or mailing address] by [insert deadline]. Feel free to contact me or [Title, Name] with any questions you may have.

Thank you for your prompt attention to the requirements in this offer. We look forward to having you join our team.

Sincerely,

[Name]

[Title]

Conditional letter of employment templates for PDF and Word

Download these conditional letters of employment templates to let prospective employees know what’s required before being hired.

*Indeed provides these examples as a courtesy to users of this site. Please note that we are not your HR or legal adviser, and none of these documents reflect current labor or employment regulations.

What to do after you send a conditional job offer

After a candidate accepts a conditional job offer, what you do next depends on the role and the required screenings. A new hire checklist can help organize the next steps. Options may include:

• Onboarding: In many cases, you can begin the employee onboarding process after a conditional job offer. The new hire might complete employment paperwork and set up their workspace. Completing these tasks can help the employee start working sooner once verifications are complete.
• Training: If your training program doesn’t require specific clearances or certifications, new hires can begin training before screening is complete. You might train workers in safety procedures, software and systems or educate employees about your company’s products and services. You can also introduce some of these topics during new hire orientation.
• Limited duties: In some cases, employees can perform certain tasks before they meet all the conditions for employment. For example, a new warehouse associate may be asked to pass a drug test before operating heavy machinery, but they might be able to start picking, packing and shipping orders right away.

For some jobs, new hires may complete all contingencies before starting work. This might be true in regulated jobs or positions that involve sensitive data. When that’s the case, the person might use the time to relocate or continue working at their current job.

Before you ask a conditional employee to start onboarding, training or working, it’s a good idea to consult with your legal team.

How do you revoke a conditional letter of employment?

As you’re screening a conditional employee, you might find that they don’t meet the requirements of the job. This may happen if they don’t qualify for security clearance, for example, or if a former employer can’t verify their employment.

If you decide to revoke a conditional job offer, confirm that you stated the condition clearly in the initial letter. This ensures that you’re treating candidates fairly.

It’s common to send a letter explaining why you’re revoking the job offer. Explain the condition that you listed in the original offer and explain why the candidate didn’t meet it. Use simple, clear language and provide proof if necessary.

When hiring a nurse, for example, you might request the person get a nursing license in your state by a certain date. If they don’t have an active license by that date, you might provide the results of your license verification.

Consider working with your human resources (HR) and legal team to make sure you’re complying with all relevant labor laws during this process.

A conditional letter of employment is one way to retain your preferred candidates during the hiring process. By creating a template in advance, you can draft and send the letter quickly and increase the chance that the candidate will accept your offer.