“Offer letter” and “Appointment letter” are often used interchangeably where it comes to professional recruitment and it creates confusion among jobseekers/candidates but also employer alike.
However, these documents serve distinct purposes in the hiring process, each carrying its own significance. So, let’s understand the difference between Offer Letter and Appointment Letter in this article in details.
Table of Contents
What is Offer Letter?
When a company or organization publish its vacancy in difference employment sites or news paper and other social media handles, then jobseekers first apply for that particular vacancy. Then employer shortlist the candidates and take those shortlisted candidate’s interview.
After the interview process, according to the interview assessment and results eligible candidates selected for employment. And the selected candidates receive Offer Letter from the company.
Thus, An offer letter is a formal document issued by an employer to a prospective employee, extending an offer of employment. This document serves as a crucial step in the hiring process and outlines the terms and conditions of the job being offered.
Here are the key components typically included in an offer letter but it may vary company to company:
Job Position and tittle: Offer letter contain the job position/designation for which the candidates is being offered employment.
Compensation: The compensation details of the particular job role is mentioned in the offer letter. Sometime it contain the net salary, gross salary or CTC. However, some company provide complete break-up of the compensation in the offer letter itself.
Start Date: It contains job starting date or the date from which employer expected the offered candidate to join the company.
Employment Status: Offer letter also states whether the position is full-time, part-time, temporary, or permanent.
Condition of Employment: Describes any specific conditions or contingencies that need to be met before the employment begins, such as passing a background check or Policy Verification.
Company Policies: May include information about the company’s policies and procedures that the employee is expected to adhere to.
Confirmation of Acceptance: Requests a formal confirmation from the candidate, usually with a deadline, indicating their acceptance of the job offer.
Contact Information: Provides contact details for the person or department that the candidate should reach out to for any questions or concerns related to the offer.
Expiration Date: Specifies a deadline by which the candidate must respond to the offer, after which the offer may be considered null and void.
Sometime offer letter formally issued to selected candidates over mail and offer details being mentioned in the mail body itself.
It’s important for both the employer and the candidate to carefully review the offer letter to ensure mutual understanding and agreement. Once accepted, the offer letter forms the basis for the employment relationship between the employer and the new hire.
An appointment letter is a formal document issued by an employer or company to a candidate who has been selected for a specific position within the company. This letter serves as a confirmation of the candidate’s acceptance of the job offer and provides comprehensive details about the terms and conditions of employment.
An appointment letter contain every relevant information relating to the employment of the newly hired candidate:
Job Title and Position: Clearly specifies the position and job title that the candidate is being appointed to.
Start Date: Clearly mentions the date when the candidate is expected to commence their employment.
Probationary Period (if applicable): Indicates the duration and terms of any probationary period during which the candidate’s performance will be assessed.
Reporting Structure: Describes the hierarchical structure within the organization, including the immediate supervisor or manager.
Working Hours: Outlines the standard working hours, breaks, and any other relevant scheduling details.
Salary and Compensation: Details the salary structure, payment frequency, and any other compensation components such as bonuses or benefits.
Employment Status: Specifies whether the employment is on a full-time, part-time, temporary, or permanent basis.
Termination Conditions: Outlines the conditions under which the employment may be terminated, including notice periods or any other contractual obligations.
Code of Conduct and Policies: Includes information about the company’s code of conduct, policies, and rules that the employee is expected to adhere to.
Benefits: Provides information about the benefits the employee is entitled to, such as health insurance, retirement plans, leave policies, and other perks.
Confidentiality Agreement (if applicable): Includes any confidentiality clauses or agreements that the employee must adhere to during and after their employment.
Contact Information: Provides contact details for the relevant person or department that the employee can reach out to for any work-related queries.
Confirmation of Acceptance: Often includes a section for the employee to formally acknowledge their acceptance of the terms and conditions outlined in the appointment letter.
The appointment letter is a crucial document that sets the foundation for the employment relationship between the employer and the newly hired candidate.
It is advisable for both parties to thoroughly review and understand the contents of the appointment letter before proceeding with the commencement of employment.
Key difference between Offer Letter and Appointment Letter
Here are the key differences between offer letter and appointment letter:
Sl No
Area of Difference
Offer Letter
Appointment Letter
1
Purpose
The primary purpose of an offer letter is to formally extend a job offer to a prospective employee. It outlines the basic terms and conditions of employment and is given before the candidate formally accepts the position.
An appointment letter, on the other hand, is issued after the candidate has accepted the job offer. Its main purpose is to confirm the appointment of the candidate to the specified position.
2
Timing
Typically issued before the candidate formally accepts the job offer. It serves as the initial communication about the employment terms.
Issued after the candidate has accepted the job offer, confirming their acceptance and providing more detailed information about the terms and conditions of employment.
3
Content
Generally includes key information such as the job position, compensation details, start date, and other basic terms. It may also mention conditions that need to be fulfilled before employment begins.
Contains more comprehensive details, including specifics about the job, probationary periods (if applicable), reporting structure, working hours, termination conditions, benefits, and any additional contractual obligations.
4
Acceptance
Requires the candidate’s formal acceptance of the job offer. This acceptance may be communicated through a signed document or some other agreed-upon method like mail.
Assumes that the candidate has already accepted the job offer, as it is issued after the acceptance has been confirmed.
5
Legal Implications
While legally binding to some extent, an offer letter is often considered more preliminary, and either party can usually withdraw without significant legal consequences.
Carries more weight in terms of legal commitment. Once an appointment letter is issued and accepted, it formalizes the employment relationship and is considered a more binding contract.
Offer Letter Vs. Appointment Letter
Conclusion: Difference between Offer Letter and Appointment Letter
In conclusion, distinguishing between an offer letter and an appointment letter is pivotal for a transparent and successful hiring process. The offer letter initiates the journey, outlining the terms, while the appointment letter solidifies the commitment, setting the stage for a mutually beneficial professional relationship.
Crafting these letters according to the company policy is immediate needs of the hiring process but also lays the foundation for a positive and lasting professional relationship.
Sample Offer Letter Format (Free Download):1
Company Letter Head
Dated: 01st April, 2022
Name: XYZ
Location: XYZ
Offer Letter
Dear Mr. XYZ ,
This is in reference to your application and subsequent interview with the authorized personnel at our client organization ‘XYZ Ltd
’ We are pleased to offer you the assignment as E Stamping Support Executive based at XYZ Location in the site office of our client from 02th April, 2022 and your compensation would be Rs: 19000 per Month (Gross).
Further details on the said assignment will be furnished on the appointment letter that would be given to you at the time of joining.
Request you to accept the offer and acknowledge the same.
For, XYZ Ltd.
Authorized Signatory
Sample Offer Letter Format (Free Download): 2
Company Letter Head
Sample Letter of Offer
{Your Company Return Address}
{Applicant Address}
{Date}
Dear {Name}:
{Name of Company} is pleased to offer you the position of {job title} effective {effective date}. Your orientation will begin on that date. We are confident your skills and experience will be a great asset to our company, and we hope you find working with us a satisfying experience.
As per our discussion in the interview, the rate of pay for the position is {$ amount} per {year, two-week period, week, hour}. Vacation pay of {%} is {included in the annual salary; added to weekly payroll; paid at time of vacation}. You will be entitled to {# days} vacation leave and {# days} of {specify name of leave} per year. Your normal hours of work will be {# hours} per week, with the regular work day being from {start time} to {finish time}. A {# months}month probationary period will apply.
Please sign the copy of this letter and return it to indicate acceptance of the offer. We look forward to having you as part of {Company}.
Yours truly,
{Name, Title}
{Company}
I accept the employment offer as (job title) with (company)
{Name}_______________________________
Date__________________________________
Sample Offer Letter Format (Free Download): 3
[Offer Letter Date]
[Name]
[Address Line 1]
[Address Line 2]
[City], [State], [PIN Code]
Dear [Mr./Miss./Mrs./Ms.] [Name],
Congratulations! We are pleased to confirm that you have been selected to work for [Company Name]. We are delighted to make you the following job offer.
The position we are offering you is that of [Job Title] at a monthly salary of [Salary per month] with an annual cost to company [Annual CTC]. This position reports to [Supervisor Title], [Supervisor Name]. Your working hours will be from [9AM to 6PM], [Starting Week Day] to [Ending Week Day].
Benefits for the position include: (Use if relevant to the position)
Benefit A (Casual Leave of 12 days per annum)
Benefit B (Employer State Insurance Corporation ESIC Coverage)
Benefit C
We would like you to start work on [Desired starting date] at [Desired starting time]. Please report to [Name of person to report on start date], for documentation and orientation. If this date is not acceptable, please contact me immediately.
Please sign the enclosed copy of this letter and return it to me by [Last date for offer acceptance] to indicate your acceptance of this offer.
We are confident you will be able to make a significant contribution to the success of our [Company Name] and look forward to working with you.
Sincerely,
(Name of person authorized to make offer)
(Position)
(Company)
Sample Appointment Letter Format (Free Download): 1
APPOINTMENT LETTER TO AN EMPLOYEE INITIALLY ON PROBATION BUT ALSO CONTAINING OTHER CONDITIONS OF SERVICE WHEN HE IS CONFIRMED/APPOINTED ON REGULAR BASIS
To
………………
………………
Sub : Offer of Appointment of the Post of ……………….
Dear Sir/Madam,
Reference your application for employment, we are pleased to offer you appointment as ……………..in our organisation on consolidated Salary of Rs ……………..(Rupees………………..) pre month. The management reserves the right to bifurcate the salary merging or bifurcating with any other allowance/allowances. The terms and conditions of service will be as follows :.
1. In the first instance you will be on probation for a period of six months from the date of your joining. Where after the probation period may be either extended at the discretion of the management or may be dispensed with either earlier or on completion or thereafter till confirmation. Unless confirmed in writing, you will be deemed as probationer after the expiry of the initial or extended period of probation. Your services are liable to be terminated without any notice or wages in lieu thereof during the initial or extended period of probation.
2. Your place of posting will, at present, be at ………………..You are liable to be transferred to another branch, shift, post of or place or to sister concern whether in existence or which may come into existence hereafter. When required to work in the sister concern during your normal working hours, no additional payment will be made for such work. It will be your responsibility to make arrangement for your residential accommodation/other arrangements, if any.
Also the management can shift the place/places of working anywhere in India and in that event you will have to make compliance for working at the new place of work and your salary and other benefits will remain in fact. Also the management can shift the premises anywhere in India and you will report for work at the shifted place. On transfer. You will be paid wages as per the minimum rates either fixed and / or revised by the prescribed authority under the Minimum Wages Act of that State which may be lesser or higher than your wages being drawn at the time of transfer.
3. You shall bear your own taxes that shall be deducted from your salary and/or other dues. For going on duty outside place or employment, you shall be governed by TA/DA rules of the company, if applicable in your case.
4. After confirmation, your services are liable to termination at one month’s notice on resignation or forfeit one month’s wages. In case you are incapacitated by reasons of illness, accident or any other cause and cannot perform your duties, the Company may at its option grant leave for reasonable time on full pay or half pay or without pay or terminate your services. Also, if you are found suffering from any infections/contagious disease, the Company may at its discretion terminate your services.
5. That during the course of your employment, you will not apply or seek employment elsewhere without written permission from the Management and in case it is so detected about your seeking of employment, it will amount to breach of trust on your part.
6. That on cessation of your employment with us, you will be under an obligation not to join, for period of six months, any competitor unless permitted by the management.
7. You will work under the supervision of such officers as may be decided upon by the management from time to time. You shall diligently and satisfactorily carry out instructions given to you by your superiors in connection with the work assigned to you to the best of your skill and ability.
8. You will strictly observe punctuality, However, in exceptional circumstances expressly explained by you, the management shall allow a grace period upto 10 minutes at the start of your duty period but you shall not be allowed to join duties later than one hours of the starting time and will be marked as absent. In case you will come later than 10 minutes on three days in a months, your one day leave shall be deducted for every such three days on which you will come late as aforesaid. The privilege of the grace period is not accumulative. Besides deduction as started hereinabove, disciplinary action for habitual late coming can also be initiated.
9. You will employ yourself efficiently to the best of your ability, will devote your whole time to the work of the organisation and will not engage yourself directly or indirectly either honorary or on remuneration in any service, trade, business, vocation or occupation (including agency of an insurance company or in advisory capacity). Also, you will not appear in any examination or attended classes without prior and written approval of the management.
10. For any service or notice or communication of whatever kind, you will be informed by ordinary post or through courier at the address given by you at the time of employment or such other address which you may hereafter intimate to the management. The management may also pasts a copy of the letter on the notice board which shall be considered to be sufficient service on you. It will be your duty to intimate in writing to the management whenever there is any change of your address. Also, you will not refuse to accept any communication as offered to you for personal delivery.
11. Absence for a continuing period of 8 days including absence when leave though applied for but not granted and when over-stayed for a period of 8 days would make you to lose your lien on the service and the same shall automatically come to an end without any notice or even intimation. In such an eventuality, the Management will draw an irresistible presumption that by remaining absent continuously and unauthorizedly, you have abandoned your job.
12. Privilege/Earned leave shall be allowed as per law. Grant of leave will depend on the exigencies of work and shall be at the discretion of the management. Before proceeding on leave, you will have to apply for leave 15 days in advance to the appropriate authority and seek the prior sanction of leave.
Similarly, for extension of leave, an application will have to be made in advance so as to reach positively before the expiry of leave originally granted. Mere submission of application will not mean that the leave has been sanctioned. The causal/sick leave will be given as provided under the law depending upon the justification of the ground for availing of leave and the genuine medical certificate supported with the application of leave. Entitlement of sick leave, when covered under the ESI Act will be only when your application will be supported by ESI Step. The Management will be within its rights to get you medically examined to verify your alleged sickness.
13. The management shall have the right to require you to subject yourself at any time during employment with the Company to medial examination. If you are not found medically fit, you may be terminated at any time by giving you one month’s notice or salary in lieu thereof.
14. You will be bound by rules and regulations enforced by the management, from time to time in relation to conduct, discipline leave, holidays or any matter relating to service conditions which will be deemed as rules, regulations and orders in the part of these terms of employment. The Management reserves the right to modify, after or delete the existing service rules or to introduce fresh service rules which will be binding upon you.
15. During the tenure of service, you will keep your emoluments secret from other members of this organization and will treat all information coming to you as strictly confidential and the information contained in all documents and papers and other matters relating to the company will not be divulged by you to any person other than those of the management.
16. Your increments/promotion and demotions will depend at the sole discretion of the management depending upon your efficiency, intelligence, regular attendance, sense of discipline, loyalty and good behavior and also subject to the prosperity of the organization.
17. In case you are charged with any act of misconduct, you may be suspended from service pending enquiry. During suspension period, you will be entitled to 50% of your salary towards suspension allowance subject to your marking of attendance on the working days at any time during working hours. While claiming suspension allowance, you will give an undertaking or affidavit every month in writing that you were neither employed nor self employed during such period.
18. That in case of resignation, the Management reserves the right to accept it with immediate effect whereas during that period, you will not join and organization without written permission of the Management.
19. That on resigning from the job, you will be required to give three months advance notice and acceptance of three months salary in lieu of notice will be at the discretion of the management.
20. That no earned leave even due will be sanctioned during one months notice period on termination by the management or during three months notice period on resignation from the job.
21. The continuation of your service is subject to your being found and remaining medically, physically and mentally fit.
22. You will automatically retire without any notice on your reaching the ageof58 years. Should you continue in service even after attaining the age of retirement, you can be retired thereafter by giving you one month’s notice or salary in lieu thereof.
23. This appointment is based on the information given by you to us in your employment/personal data form and otherwise, and shall be considered null and void if a material error/suppression or false detail is discovered therein at any time. In that eventually, the management can recover the payment made to you towards your remuneration during employment.
24. Besides above conditions, you will abide by the service Rules/Regulations or standing as in operation besides office orders which are issued from time to time. The service Rules/Regulations can be modified/replaced by the Certified Standing Orders which will be binding upon you.
In case the terms and conditions are acceptable to you, please sign the duplicate of this letter in token of your having understood and having accepted the same and return the same.
Yours faithfully.
For and on behalf of the Management
Authorized Signatory.
Declaration
I have read/understood the above terms & conditions and agree to abide by them.
Signature
Dated:
Sample Appointment Letter Format (Free Download): 2
[Date, Month, Year]
[Candidate Name]
[Address Line 1]
[Address Line 2]
[City], [State] [Pincode]
Subject: Appointment for post of [Designation]
Dear [Mr.] [Candidate Name],
We are pleased to offer you, the position of [Designation] with [Company name] (the ‘Company’) on the following terms and conditions:
1. Commencement of employment
Your employment will be effective, as of [Starting Date, Month, Year]
2. Job title
Your job title will be [Designation], and you will report to [Mr.] [Name], [Supervisor Designation].
3. Salary
Your salary and other benefits will be as set out in Schedule 1, hereto.
4. Place of posting
You will be posted at [City, State]. You may however be required to work at any place of business which the Company has, or may later acquire.
5. Hours of Work
The normal working days are [Start Day] through [End Day]. You will be required to work for such hours as necessary for the proper discharge of your duties to the Company. The normal working hours are from [Start Time] to [End Time] and you are expected to work not less than [Number of Hours] hours each week, and if necessary for additional hours depending on your responsibilities.
6. Leave/Holidays
6.1 You are entitled to casual leave of [Casual Leave] days.
6.2 You are entitled to [Sick Leave] working days of paid sick leave.
6.3 The Company shall notify a list of declared holidays in the beginning of each year.
7. Nature of duties
You will perform to the best of your ability all the duties as are inherent in your post and such additional duties as the company may call upon you to perform, from time to time. Your specific duties are set out in Schedule II hereto.
8. Company property
You will always maintain in good condition Company property, which may be entrusted to you for official use during the course of your employment and shall return all such property to the Company prior to relinquishment of your charge, failing which the cost of the same will be recovered from you by the Company.
9. Borrowing/accepting gifts
You will not borrow or accept any money, gift, reward or compensation for your personal gains from or otherwise place yourself under pecuniary obligation to any person/client with whom you may be having official dealings.
10. Termination
10.1 Your appointment can be terminated by the Company, without any reason, by giving you not less than [Notice] months’ prior notice in writing or salary in lieu thereof. For the purpose of this clause, salary shall mean basic salary.
10.2 You may terminate your employment with the Company, without any cause, by giving no less than [Employee Notice] months’ prior notice or salary for unsaved period, left after adjustment of pending leaves, as on date.
10.3 The Company reserves the right to terminate your employment summarily without any notice period or termination payment, if it has reasonable ground to believe you are guilty of misconduct or negligence, or have committed any fundamental breach of contract or caused any loss to the Company.
10. 4 On the termination of your employment for whatever reason, you will return to the Company all property; documents and paper, both original and copies thereof, including any samples, literature, contracts, records, lists, drawings, blueprints, letters, notes, data and the like; and Confidential Information, in your possession or under your control relating to your employment or to clients’ business affairs.
11. Confidential Information
11. 1 During your employment with the Company you will devote your whole time, attention and skill to the best of your ability for its business. You shall not, directly or indirectly, engage or associate yourself with, be connected with, concerned, employed or engaged in any other business or activities or any other post or work part time or pursue any course of study whatsoever, without the prior permission of the Company.
11.2 You must always maintain the highest degree of confidentiality and keep as confidential the records, documents and other Confidential Information relating to the business of the Company which may be known to you or confided in you by any means and you will use such records, documents and information only in a duly authorized manner in the interest of the Company.
For the purposes of this clause ‘Confidential Information’ means information about the Company’s business and that of its customers which is not available to the general public and which may be learnt by you in the course of your employment. This includes, but is not limited to, information relating to the organization, its customer lists, employment policies, personnel, and information about the Company’s products, processes including ideas, concepts, projections, technology, manuals, drawing, designs, specifications, and all papers, resumes, records and other documents containing such Confidential Information.
11.3 At no time, will you remove any Confidential Information from the office without permission.
11.4 Your duty to safeguard and not disclose Confidential Information will survive the expiration or termination of this Agreement and/or your employment with the Company.
11.5 Breach of the conditions of this clause will render you liable to summary dismissal under clause above in addition to any other remedy the Company may have against you in law.
12. Notices
Notices may be given by you to the Company at its registered office address. Notices may be given by the Company to you at the address intimated by you in the official records.
13. Applicability of Company Policy
The Company shall be entitled to make policy declarations from time to time pertaining to matters like leave entitlement, maternity leave, employees’ benefits, working hours, transfer policies, etc., and may alter the same from time to time at its sole discretion. All such policy decisions of the Company shall be binding on you and shall override this Agreement to that extent.
14. Governing Law/Jurisdiction
Your employment with the Company is subject to Indian laws. All disputes shall be subject to the jurisdiction of [High Court] [State] only.
15. Acceptance of our offer
Please confirm your acceptance of this Contract of Employment by signing and returning the duplicate copy.
We welcome you, and look forward to receiving your acceptance and to working with you.
Yours Sincerely,
[Name of Supervisor]
[Supervisor Designation]
[Date]
Schedule I – Compensation Details
Salary Structure
Basic Salary
House rent allowance
Medical allowance
Leave travel allowance
Additional Benefits
Performance incentive
PF Contribution
ESI Contribution
Stock Option
Car
Telephone
Note: You will receive salary, and all other benefits forming part of your remuneration package subject to , and after, deduction of tax at source in accordance with applicable law.
Schedule II – Employee Duties & Responsibilities
Duties:
Responsibilities:
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