An offer letter is a conditional offer, not the contract of employment. The appointment letter that follows is the statutory document. Keep the two distinct: this letter states what is being offered and on what conditions, and lapses if not accepted or if a condition fails.
Offer of Employment
[COMPANY NAME]
An offer letter is a conditional offer, not the contract of employment. The appointment letter that follows is the statutory document. Keep the two distinct: this letter states what is being offered and on what conditions, and lapses if not accepted or if a condition fails.
[COMPANY NAME] CIN: [CIN] [REGISTERED OFFICE]
Private and confidential
Date: [DATE] Reference: [REF]
[CANDIDATE NAME]
[ADDRESS]
[EMAIL] [PHONE]
Dear [FIRST NAME],
Offer of employment — [DESIGNATION]
Following our discussions, we are pleased to offer you employment with [COMPANY NAME] on the terms set out below. We were impressed by [DESCRIBE BRIEFLY — what stood out] and we think you will do well here.
1. The Role
| Item | Detail |
|---|---|
| Designation | [DESIGNATION] |
| Grade or level | [GRADE] |
| Function and team | [FUNCTION] |
| Reporting to | [NAME], [DESIGNATION] |
| Place of work | [LOCATION] (state the actual place; add any hybrid or remote arrangement expressly) |
| Nature of employment | [Permanent, subject to probation / Fixed-term for the period from ______ to ______] |
| Proposed date of joining | [DATE] |
| Probation period | [NUMBER] months from the date of joining |
| Working hours | [HOURS] per day, [DAYS] days per week, subject to the Company’s policy and to applicable law |
| Notice period | [NUMBER] [days / months] during probation and [NUMBER] months on confirmation |
| Offer valid until | [DATE] — this offer lapses if not accepted by this date |
2. Compensation
Your annual cost to company will be ₹ [AMOUNT], made up as follows:
6 more pages in the Word file
Preview of the first page. Highlighted fields are the ones you fill in — they appear the same way in Word. Scroll the preview to read on; the full document runs to 7 pages.
These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
The consolidated labour legislation requires every employee to be issued an appointment letter containing prescribed particulars. An offer letter does not satisfy that requirement. Issue the offer letter at the point of offer and the appointment letter on joining, and make clear — as Clause 6.1 does — that the appointment letter supersedes the offer.
Under the consolidated definition of wages, the components excluded from wages cannot exceed half of total remuneration; where they do, the excess is added back and treated as wages. The practical effect is that basic salary plus dearness allowance should be at least half of the total, and provident fund, gratuity, overtime and leave encashment are all computed on that larger base. Salary structures built the old way — a small basic and a large special allowance — no longer work and understate every statutory liability. Build the structure correctly at offer stage; restructuring after joining reduces take-home pay and is very poorly received.
Candidates consistently read the cost-to-company figure as what they will receive. It includes employer contributions and provisions they never see, and take-home is lower again after employee contributions and tax. The note under the compensation table says so explicitly. Being straightforward about this at offer stage prevents a bad first month.
The appointment letter must record the place of work, and a later relocation or a change from remote to office working is a change of terms. Where the arrangement is hybrid or remote, say so in the offer, including how much attendance is expected and from where, rather than stating a head-office address that nobody intends.
An unconditional offer that is accepted creates a contract, and withdrawing it afterwards is a breach. Clause 5 makes the offer conditional on verification, references, documents, and the absence of any restraint from a previous employer. State the conditions rather than assuming a right to withdraw.
Clause 5(d) and acceptance paragraphs 2 and 3 exist to keep the Company out of a dispute with a former employer. A post-employment non-compete will generally not be enforceable in India, but confidentiality obligations and intellectual property assignments to a former employer are, and an employee who brings a former employer’s material into the Company creates a real exposure. Ask the question in writing and keep the answer.
Whether variable pay is payable to someone who has resigned but not yet left is the most commonly disputed term on exit. Clause 3.3 states the position expressly. Whatever the answer, put it in the letter rather than in a policy the employee has not seen.
A repayment obligation on early resignation is generally enforceable as a genuine pre-estimate of the recruitment cost, provided the amount is reasonable and the period is short. A clawback that operates as a penalty, or that is disproportionate to any actual loss, is vulnerable. Keep it modest and time-limited.
Verification involves processing personal data, including from third parties. Obtain written consent, describe what will be checked in the privacy notice, collect only what is needed, and retain it only as long as necessary. A blanket authorisation to conduct unspecified checks is neither good practice nor a sound basis for processing.
Where the engagement is genuinely for a fixed term, say so in the offer. Fixed-term employees are entitled to the same statutory benefits as permanent employees in proportion to their service, and eligibility for gratuity does not depend on completing the usual qualifying period. Do not use a fixed-term label to avoid obligations that apply anyway.
An offer left open indefinitely can be accepted months later, after the role has been filled. Clause 1 and the closing paragraph both set a date. Diarise it and confirm in writing if it is extended.
The consolidated labour legislation operates alongside rules notified separately by each State, and the position is not uniform across States on working hours, leave, notice and record-keeping. Confirm the requirements applicable in the State of the place of work before issuing offers at scale.
Reflects Indian law current as of {{DATE OF USE}}. Wage definitions, leave entitlements, notice requirements and State rules all change — have the offer template and the salary structure reviewed by an employment adviser and a payroll specialist before use, and again whenever the structure changes.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, company secretary, or chartered accountant as relevant) before you rely on it.