What is the difference between a Letter of Intent (LOI) and an Offer Letter, and if I have submitted a Letter of Intent to a company, can I still apply to other jobs to secure a confirmed offer?
The difference between a Letter of Intent (LOI) and an Offer Letter is significant, as they represent different stages in the hiring or job process. Here’s how they differ and how it relates to your question about applying for other jobs:
Letter of Intent (LOI):
- What it is: A non-binding document where you express your intention to join a company if certain terms are agreed upon. Sometimes, it’s the company expressing their interest in you but without any firm commitment.
- Binding? No, an LOI is generally not legally binding. It’s more like a declaration of mutual interest between you and the company.
- What it means for you: Submitting an LOI does not lock you in. You can still explore other job opportunities because the LOI does not guarantee that you’ll receive a confirmed job offer.
Offer Letter:
- What it is: A formal, often binding document that specifies the terms and conditions of employment (e.g., job title, salary, start date, etc.). It represents the company’s official commitment to hire you.
- Binding? Usually, an offer letter is a stronger commitment than an LOI. If you accept the offer, it may become binding depending on jurisdiction or company policy.
- What it means for you: Once you accept an offer letter, it’s professional etiquette to stop applying for other jobs unless something changes (e.g., the offer is rescinded or you decide not to join).
Can you apply to other jobs after submitting a Letter of Intent?
Yes, you can apply to other jobs after submitting a Letter of Intent, as it doesn’t confirm your employment with the company. It’s wise to keep your options open until you have a firm offer in hand (an offer letter) and are certain about the job.