Are Appointment Letters and Contracts the Same? Seeking Clarity on HR Documents

Hi,

I would like you to tell me if appointment letters and contracts are one and the same thing or if they are two individual documents. I am of the opinion that appointment letters are the same as contracts, but our legal advisor differs. Please give your comments on the same.

Thanks,

Mods: Sorry for double posting. I have posted this in HRM topic as well as I didn't know it's more apt here in this section.

Hi Neha,

I would like you to tell me if appointment letters and contracts are one and the same thing or if they are two individual documents. I am of the opinion that appointment letters are the same as contracts, but our legal advisor differs. Please give your comments on the same.

Thanks.

Mods: Sorry for double posting. I have posted this in HRM topic as well, didn't know it's more apt here in this section.

Regards,
Arun K Mishra

Appointment letters are permanent, whereas a contract is for a fixed period or for a certain task. In an appointment letter, a notice period is there, but in the case of a contract, notice as well as the contract comes to a close on its expiry of the terms.

Hi Arun,

Thanks for replying. Could you please elaborate on what the contents of both are? In my opinion, the appointment letter should contain details about CTC and certain terms and conditions. What should the contract entail?

Regards,
Neha

Hello,

A contract letter is an agreement letter between an employer and an employee. The contract is written down, and both parties agree to its terms. The contract is typically signed for a specific task or project with a time limit, benefits, and other specified details.

An appointment letter is also a similar letter, but in the case of an appointment, the employee is directly under company employment and is usually intended for long-term employment. In this scenario, the employee is entitled to all benefits as per the company's rules and regulations.

The appointment letter is generally issued after the completion of the probation period, depending on the performance review.

I hope this clarifies your query.

Regards,
Fay

Dear All,

Can anyone send me or attach a sample bond or contract for the employee to be signed so that I can keep them for a certain period of time?

Regards,
Alex

Dear All,

Let me try to remove any doubts. A letter of employment is also a contract between an employee and the employer based on the terms of employment as may be specified at the time of joining or may be amended from time to time between an employee and an employer, which is to be further read with different statutes as may be applicable depending upon the classification of an employee - worker, staff, and management staff.

This contract is to be understood as either the Contract of Employment or the Contract for Employment in a legal sense. The contract of employment is for an open period, whereas the contract for employment is for a specified period.

Hopefully, this has provided some clarity. If you still need further clarification on this aspect of terms, please write to me at email: destin@mtnl.net.in

With warm regards to all.

B.B. Rajpal

Hello,

It is not difficult to send some samples, but I shall request you to speak to your consultant, who shall be able to provide a suitable draft. The reason for such a suggestion is that contracts differ based on the classification of an employee and the industry. If used on the basis of a sample, it may cause more harm than good to you or the company, as the same is legally binding on both parties. Hopefully, you understand the implications of such a decision.

Regards,
Rajpal

Dear Folks,

I think, to a large extent, B. B. Rajpal is right. However, the significant difference also stems from the entitlements. In most cases, the contract terms turn out to be consolidated. The appointment letter mentions few conditions since most of them are spelled out in the employees' handbook. Both documents are legally binding on both employers and employees.

Paa Kow.

Hi Alex,

Please find enclosed the employee contract agreement.

Cheers,
Karna

Hi,

An Appointment Letter defines the terms and conditions of appointment for regular employees and may not have an end date specified. Sometimes companies may define a retirement age and limit the appointment to that date. However, a contract is a term-based association and ceases on the specified end date. Contracts need to be renewed, whereas an appointment letter does not.

Regards,
Saravjot

Hi,

Could someone please forward me a format for the appointment letter for an IT company?

Regards,
Jennifer Isaac

Appointment letter is the detailed terms and conditions about employment, which is issued to all employees. It is an agreement made between the company and the individual employee.

In the case of a contract, an employee is bound to complete whatever is mutually agreed upon. For example, if there is an agreement between an employee and an employer for a 2-year service bond, then the employee can't leave before the expiry of the period. However, in the case of an appointment letter, such conditions do not apply.

Regards,
Ranjeet

Hi Folks,

I forgot to send you a format of a contract. Sorry about the delay because I have been very busy. I hope it's not too late, though. In fact, this is a very detailed contract format that can be used for both expatriate and local employees. You have to tailor-make it to fit your needs. I have intentionally deleted the name of the country and made it "country" so you may state the country. You may contact me personally at [Login to view] if you need any further confidential details on this.

Paa Kow

Hi Folks,

I forgot to send you a format of a contract. Sorry about the delay because I have been very busy. I hope it's not too late, though. In fact, this is a very detailed contract format that can be used for both expatriate and local employees. You have to tailor-make it to fit your needs. I have intentionally deleted the name of the country and made it "country" so you may state the country.

You may contact me personally at paakowdaniels@yahoo.com if you need any further confidential details on this.

Paa Kow

Dear Neha,

An appointment letter and a contract letter are two different documents. An appointment letter is issued when a company wants to hire employees on a regular basis under general terms and conditions that govern the organization in this regard. On the other hand, a contract letter is issued when a company wants to hire someone for a specified period under exclusive terms and conditions. The company may choose to include some or all of the benefits given to regular employees, or they may not. It is the employer's prerogative (however, statutory requirements need to be fulfilled).

In a contract letter, the CTC (Cost to Company) as well as the terms and conditions are mentioned, similar to an appointment letter. However, a contract letter is specifically created as a legal document that indicates the different terms and conditions that will apply to the individual concerned.

Regards,
Santosh

Santosh,

Please note that both are legal documents. In case of any dispute, the appointment letter will be the reference point for any legal battle.

Paa Kow

Dear All,

For a contract to come into existence, there should be an offer and acceptance. This can happen both in an Appointment Letter as well as a contract. If the Appointment order is accepted, then it leads to a contract.

With regards,

V. Sounder Rajan

Email: rajanassociateslawfirm@yahoo.com, rajanassociates@eth.net, rajanassociateslawfrm@gmail.com

Dear Friends,

Good point to discuss. I think Neha is a bit confused between a contract and a bond, and some companies are giving an appointment letter which itself stands as a contract. But to simplify, an appointment letter is very simple to accept on either side. A contract sometimes forces either side into specific actions.

What do you say, buddies...

Hi,

Our manufacturing plant is located in such an area where the local people threaten us to hire their local people and not outsiders or contractors. The problem with hiring the local people is that they get involved in unions and create lots of problems as they are not only supported by outside union parties but also politicians.

If we were to hire them, what should be the main terms and conditions in the contract or appointment letter? Please suggest or email me your valuable suggestions at gholap.jyoti1@gmail.com.

Please suggest.