Is It Compulsory To Issue Offer Letter?

Thank you everyone for your valuable suggestions and for giving detailed explanations.

The candidate may negotiate with any other company on basis of the offer letter issued by us and few companies i know are not issuing offer letter, this is the reason why i had this doubt and wanted to know is it legally compulsory to issue offer letter.

I accept the fact that giving written offer letter will create confidence towards the job confirmation. As said, using E.mails for offer letter is also good.

From your suggestions, i got some more doubts

1. Discussions about pros & cons are going on in this thread, about including salary details .Kindly confirm whether to include or not.

2. Though we mention terms & conditions in appointment letter, thought of including

"I understand that this offer is based on the information provided by me in the resume and at the time of interview. In case of any discrepancy or information found is wrong, the organization has the right to withdraw the offer or terminate services during my employment without prior notice. I accept the terms of this offer."

in offer letter and get it signed by the candidate, if he accepts the offer. Is it not necessary?

Awaiting for your responses..

Dear Dharshinihra,
1) Please consider including salary details, which is important to build trustworthy relationship between your organization and your prospective employee.
2) The clause you have mentioned above in point no.2 is also good. You may include that in offer letter.
With regards,
Madhusudan

Hello,
I agree with the anonymous recommendation. I have one small IT company dealing with US clients and we have also been following the same principals. At many times the candidates who were selected and offered the appointment letters with full terms and conditions by us and had confirmed the appointment acceptance also did got their salary increase from the old company and did not join us. But that is their personal decision and we do not want such fellows in our organisation who can not be trusted on petty financial benefits. Trust on the employees and on the employer is a must for reputation and growth of the organisation. So there should be transparency in the dealings right from the start.
Mahavir Mittal

Though appointment letter is important to build up employer and employee relations. But most of the contractors, I repeat most of the contractors do not issue any letter. They do not issue even identity card to show to which contractors he belongs. This is to be checked by the Labour Authorities. Without establishing employer - employer connection, worker has to take lot of strain to establish that he belongs to so and so contract, in case there is any type of dispute.

Giving Offer letter is a good practice. Offer letter carries a information about the Post, Salary, Terms and conditions, Date of joining. Its a assurance of the company in a very start way. So the employee also gains confidence about the job offered. Offer letter should be prepared with utmost care as the same reflects in employment contract too.

Well, even you informed the employee regarding interview results, you need to tell them company terms and conditions along with CTC offered and deductions as well, instead of telling it verbally, better to give them all the things in written. If you do not want to provide the offer letter then it will be your choice but I do not think so as there's no harm in providing the offer letter.