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Safeguarding Employer Rights in Today’s Workplace
In today’s rapidly evolving business environment, companies face numerous challenges in managing their workforce.
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Appointment Letter
The letter that turns an accepted offer into an employee. It is usually handed over on the first day of joining, and it is what a smaller employer is later held to.
- Written for your policies, your notice period and your salary structure
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What an appointment letter is
The formal appointment, issued after the offer has been accepted and normally handed over on the first day.
An appointment letter is the letter a company gives a person to appoint them formally as an employee. It comes after the job offer has been accepted, and it is generally provided on the first day of joining rather than at the point of selection.
It sets out the position, the salary and the benefits that go with it, the company policies the employee is expected to follow, and the other terms on which they are being taken on. A copy is signed by the employee and returned to the employer, and that returned copy is what records that the terms were received and accepted.
For a large employer it sits alongside a full employment contract. For a smaller one it is frequently the only written terms of employment there are, which is why what it leaves out matters as much as what it says.
- Given to
- A new employee
- After the offer has been accepted
- Given when
- On joining
- Usually the first day
- Issued by
- The employer
- HR manager or the employer directly
- Signed by
- Both
- The employee returns a signed copy
- Drafted on
- Company letterhead
- Stamp paper
- Not required
- And it needs no notary
- Copies
- Two
- One with each side
Why employers have us draft it
- Drafted by lawyers who write these for employers every week
- A free consultation call before anything is drafted
- Customised to your policies rather than a generic format
- The whole engagement handled online
- Thousands of businesses served across every state in India
What the drafting covers
A conversation about how you actually employ people, then a letter written to match it.
- A consultation call to understand the role and the terms being offered
- A letter drafted from scratch by an experienced lawyer
- Your salary structure, leave policy and notice period written in
- Revisions after you have read the draft
- Guidance on how it should be issued and signed
We draft the letter. Deciding the salary, the designation and the policies behind them is yours. The consultation is where we tell you which of those choices commit you to something.
What the letter has to state
The position and the reporting line
The designation being confirmed, the date the employment starts and who the employee reports to. Vague wording here is what makes a later change of role look like a demotion.
The salary and what comes with it
The remuneration, the deductions to be made from it, and the benefits and allowances that sit alongside it.
The policies that apply
Leave, working hours, conduct and anything else the employee is being asked to follow. Naming the policy is not enough if the employee has never been shown it.
How it ends
The notice period on each side, and any probation the appointment is subject to. This is the clause most often left out and the one most often needed.
Why the letter is worth getting right
It is a short document, and for most Indian employers it is the whole of the written record.
It is the terms, in writing
Salary, designation, leave and notice period stop being something two people remember differently. A returned signed copy is evidence that the employee received them.
It fixes the notice period
The notice each side has to give is only enforceable if it was agreed in writing. Without it, an employee leaving at short notice is a conversation rather than a term.
It brings the policies in
Leave, conduct and working hours become part of the employment because the letter says they do. A policy that is never referenced in anything the employee signed is hard to enforce.
The next employer asks for it
It is commonly produced as proof of the designation held and the terms it was held on, which makes it worth issuing properly even where nothing goes wrong.
Which of the four HR letters this is
An offer letter, an appointment letter, an employment contract and a relieving letter are four different documents issued at four different moments. This is where each one sits.
| Attribute | Appointment letter | Offer letter | Employment contract | Relieving letter |
|---|---|---|---|---|
| Where it falls in the hiring | ||||
| After acceptanceAfter the offer has been accepted. It is usually handed over on the first day of joining. | After selectionOnce the candidate has cleared every round and the employer has decided to hire them, but before anything has been accepted. | On joiningSigned on or around the joining date, with the rest of the HR formalities, before the employee is assigned any work. | On the last dayAfter the resignation has been accepted and the notice period has been served, on the final day of the employment. | |
| The employerDrafted on the company letterhead and authorised by the HR manager or employer. | The employerUsually the HR function, on the letterhead. | The employerPrepared by the employer and executed by both parties. | The employerOn the company letterhead, signed and authorised by the employer. | |
| BothThe employee signs a copy and returns it to the employer, which is what records that the terms were received. | Both, to acceptThe candidate signs to accept. Until then it binds nobody, and either side may withdraw. | BothIt is a contract, so both parties execute it. | The employer onlyIt is a confirmation issued to the employee rather than an agreement with them. | |
| What is in it | ||||
| The appointmentThe position, the salary and benefits, the company policies that apply, and the other terms of the employment. | The offerDesignation, remuneration, reporting manager, joining date, paid leave, and the documents to be produced on joining. | The full termsRoles and duties, remuneration, probation, confidentiality, intellectual property, non-compete and how either side may end the engagement. | That you have leftThat the resignation was accepted and the employee has been relieved of their duties and responsibilities. | |
| Part of the termsIt records the terms of the employment and is relied on as evidence of them. For a smaller employer it is often the only written terms there are. | Not until acceptedThe company may withdraw it at any point before acceptance, on reasonable grounds, and the candidate may decline it. | YesA legally binding agreement, enforceable in a court, and either party may seek a remedy for a breach of it. | NoA confirmation of a fact. It creates no obligation on either side. | |
| SometimesAsked for as proof of the designation and the terms held at the previous employer. | RarelyIt is superseded by the appointment letter. | RarelyIt is usually confidential and is not normally shown to a subsequent employer, though its notice period governs when the employee may leave. | UsuallyCommonly asked for at the point of joining, as proof that the previous employment was ended properly and no notice period is outstanding. | |
| Next step | Get started | Know more | Know more | Know more |
Swipe the table sideways, Appointment letter stays in view. Open any attribute to read the detail behind all 4 answers.
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Is an appointment letter the same as an offer letter?
No. An offer letter is given when the candidate has been selected and is being offered the job; the appointment letter comes after they have accepted it, and confirms the appointment itself.
A company may withdraw an offer letter before it is accepted. An appointment letter is issued once the employment is going ahead.
Does it need stamp paper or a notary?
No. It is drafted on the company letterhead, signed and authorised by the HR manager or the employer, and needs neither stamp paper nor notarisation.
Is it compulsory to issue one?
No law requires it. In practice almost every employer does, because without it there is no written record of the designation, the salary or the notice period, and each of those is a term somebody will eventually want to rely on.
Can the same letter be used for every employee?
The structure can. The terms cannot: designation, salary, reporting line, probation and notice period change with the role, and a letter that leaves any of them generic is the one that causes an argument.
We usually draft a master letter for an employer and vary the commercial terms per hire.
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