Offer letter versus employment contract: What’s the difference?

We all love to hear the words “we’d like to offer you the position” when we’re looking for a job, but the next step is to get that offer in writing.  

An offer letter is important because it clearly outlines the terms of employment before a job begins. It provides a written record of key details such as compensation, schedule, start date, and benefits (if any). Having these terms in writing helps prevent misunderstandings and ensures that both the employer and the employee share the same expectations. An offer letter also gives the candidate an opportunity to review the details of the position, ask questions, or negotiate terms before accepting the role. Ultimately, it serves as a professional and transparent way to confirm the agreement and establish a clear foundation for the working relationship. 

The importance of an offer letter 

I (Shelley) once worked at an office for about seven years before learning that I had been eligible for an employee Costco card the entire time. When I got the position, I didn’t ask for an offer letter, and the only thing that was mentioned was the pay and I accepted the position on the spot. There were likely other benefits or details that I unintentionally left on the table that could have been negotiated. 

When a job offer is a good fit and I’m excited about the role, I’m a stronger employee. Feeling valued and having clear, agreed-upon terms allows me to perform at my best and contribute more fully to the success of the office. 

Offers can include things like retirement benefits, PTO or vacation time, sick time, holidays, CE allowances, health insurance, retirement options, student loan repayment terms, or a signing bonus. They may also include contingencies such as background checks, immunization requirements, or an initial trial period. Other benefits could include scrubs, membership dues, or professional licensing support. 

Once you receive a verbal offer, it is standard practice in many industries to say something like: “I’m really excited about the opportunity. Could you send over a written offer outlining the schedule, compensation, and any benefits so I can review everything before making a final decision?” 

Once you receive the offer, you can accept it or negotiate the terms before accepting the position, then define the terms of employment in an employment contract. An employment contract is far more detailed than a standard offer letter and sets the framework for your day-to-day work life as Kayla describes below.  

Having clear expectations 

Whether you’re a new hygienist or have worked for many years, we all feel burnt out at some point. Most of the issues we have can be due to lack of communication, unclear boundaries—and more importantly—having no written rules in place. We agree to working through our lunch one time, then bam! We’re working through lunch most days. We feel guilty if we have to take a day off. We start at an office expecting a certain salary and are shocked when we receive our first paycheck.  

There is a way we can avoid this burnout. Historically, the dental world has not provided a written and signed employment contract between hygienists and owners. I (Kayla) have worked across three states in about 10 offices and only two of these offices provided an employment contract. However, each contract was structured differently and only included a few details.  

What to look for in an employment contract 

There is so much more that can and should be included in an employment contract. This includes the exact hours you’re expected to work, how much notice an office must give before canceling your day, and the precise amount of time required with each patient. It could also outline policies for taking a day off or arranging a temporary replacement, so both the employee and office know the expectations for coverage. A comprehensive contract can also cover termination policies and notice requirements, noncompete clauses, or restrictions on working in a competing practice, professional liability coverage and who is responsible for it, expectations for professional conduct and office procedures, and ownership or usage rights for patient charts, records, or marketing content. Additionally, it should address any required probation or trial periods, along with the terms for renewal or renegotiation. So why aren’t we doing this? 

As hygienists, we deserve to feel safe and secure in our jobs. If there is a question about which days and what hours we are working, we have something written clearly that anyone in the office can refer to. We deserve to be in an office that values us and our boundaries. More details mean less room for error. Do yourself a favor and talk to your boss about writing up a contract. It’s never too late.