Dear Friends,
One senior official of our Company advised me to issue 'Letter fo Intent' and not 'Offer Letter' while offering a job offer to a candidate. He said, that if we issue 'Offer Letter' we will be legally bound to keep him but such boundation will not be there if we issue 'Letter of Intent'. Please put accross your valued opinion in this regard.
Bibek Banerjee

From India, Calcutta
Normally letter of intent is issued for the work/contract.
It is practice to issue Offer letter for Job.
When you are issuing a offer letter you must be sure that you need that person otherwise do not issue letter.
In this case question of keeping / rejecting / denying does not arise after offer letter.
Follow a healthy HR practice.
N N Tiwari

From India, New Delhi
Letter of intent-Confirmation of hiring that resource but CTC will not be mentioned.
offer letter-With CTC details.
Better to give intent becos ,Some may go for other interviews holding this offer letter with CTC.
If wrong Kindly advice me,

From India, Madras
all terms and conditions need to be clear and mutually agreed upon by both the parties beforehand for a contract to be legally valid.
suppressing details regd CTC is a not a sound practise almost akin to not providing salary slip before disbusing salary..
as far as letter of intent Vs offer letter goes, lets take an example:
what happens when an employee resigns from the prev cos and then on his/her joining your cos finds the terms and conditions contrary to his expectations ?
what are the legal implications and effect on turnover/ loss of goodwill in such a scenario ?

From India, Delhi
Hai surya,
Your information is hishly valuable,It speaks mor on organistion ethics,But candidate miss use with our offer.They will have choices in the market very easily when we give offer letter.

From India, Madras
Hi mukesh,
Offer letter speaks about faith and trust from both side, as employer you are confirming employee to join with you, and employee also seek protection when he/she leave from other company
Just imagine, to target antisocial elements, if you are not providing CTC then unethical companies how great extend can exploit mass with this power.
And if the person who negotiate offer with others, do you think he/she has character? and if you take Characterless ppl with you, what your growth will be? its better to take polished and disired to work with you then to just artificially meeting recruitment targets.
its way of retention..........
isn;t it?

Hi Mukesh,

I have gone thru opinions expressed by members on the point raised. There are two types of contract. One is "Contract of service", and other is "Contract for service'. There is difference between the two. Letter of intent is a term used in the tendering Processes and never in appointments for jobs. Legal implications are that when u issue letter of intent that can never be treated as offer of appointment. And when an employee joins your organisation against letter of intent and you allow him to join then there becomes legal binding between your orgn. and the employee. He in all legal aspects becomes your employee and is bound by your orgn. rules and regulations.Then I do not see any shrewedness in changing the word "offer of appointment" to "Letter of intent". Secondly, When u use the word "letter of intent" u are badly damaging the image of your orgn. in public. The mala fide intention becomes quite clear i.e. mens rea. And it becomes more clear when you chuck out the employee without following the due process of law i.e. actus reus. The offence is complete against the orgn. when you act to throw out the employee. I am of the clear opinion that use of letter of intent in lieu of offer of appointment is legally and morally wrong. If some one does not agree with my views please express your views.I would be glad to know to your views. The advice given by your senior appears to be out of extreme shrewedness without considering the legal and moral implications. The senior appears to be a Contracts specialist. Issue of "offer of appointment" is the best way. My advice to you is that you must seek legal opinion of your law deptt. if it exists.


Yours Truly,

Satish Kumar Dhanwal,

Head (HR),

NTPC Foundation,


From India, Delhi
I firmly believe in Mr. Satish analysis ,we need to respect Statutory rules & understand the implication on our internal resources as well as on company's reputation.Its an open market & we need to understand that resources will chose the best for themselves during there job hunt..As an HR we are the brand Ambassadors & we need to market our company in such a way that they are interested to join rather than using Tactics which depicts a wrong impression about our Organization.
I would suggest you to use offer letters & go ahead & hire the resources which are willing to work in your organisation.

Hi Every one,
I quite agree with Mr Dhanwal that Offer Letter is what you offer and no other form be used after you have made up your mind to 'finally' select a candidate.
Neeraj Bharadwaj
Head HR

From India, Mumbai
Hi Neeraj, Thanks for appreciation and inderstanding my point of view on the point in issue. reagrds,Yours truly, Satish Kumar Dhanwal, Head 9HR), NTPC Foundation, Noida
From India, Delhi

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