From the legal aspect what is the difference between an Offer letter and an Appointment Letter?

Hi all, I have gone through lots of discussion threads where two terms are always referred to, i.e., Offer letter and Appointment Letter. My question is: What is the difference between an Offer letter and an Appointment Letter?

One difference that I know is a company issues an offer letter to candidates after selection, and the candidate can accept or reject the same. Once an employee joins the company, then on the DOJ, the company provides an Appointment letter. Please let me know if there is any other difference.

From the legal aspect, what is the difference between an Offer letter and an Appointment Letter?

Many employers don't provide appointment letters. Why?

Hi there,

There is a big difference between an appointment letter and an offer letter.

Offer Letter: It's given to a candidate after an interview and selection, which states the offered salary package, designation, grade, department working, and the number of days entitled for leave.

Should you accept what has been offered, then you are provided with a contract/agreement that has all your entitlements and the company's basic rules. Should you accept and start working, you are given a letter of appointment confirming that you are an employee of that company under the agreed terms and conditions. This document can be given immediately at the appointment, or some companies keep this letter until you have successfully completed your probation, then they give you the letter of appointment.

Hi,

The offer letter speaks about the deal that was confirmed during the interview. It depends on the candidate to accept or reject the offer letter if anything mismatches with what was discussed or intimated during the interview. The appointment letter is a confirmation letter that states the benefits, compensation, designation, role, and profile in more detail than the offer letter. It is very elaborate. However, both documents are legally binding.

Many companies provide the offer letter during the employee's probation period, and after the probation period, an appointment or confirmation letter is issued.

I hope this clarification clears your doubt.

Regards,
Gaurav Vedak

Of late, these two terms are more applied in India. Earlier we have heard of only an appointment order. After the arrival of MNCs, we started hearing an Offer letter. Of course, a double work for the HR department and unnecessary entries to be made. We can just stick to one mode as usual. Legally they differ, but why get entangled in it?

An offer letter is a document given to the successful candidate stating that the company is pleased to give a job offer with the position, grade, salary, etc. Based on this letter, the candidate can resign from his current job with his employer. Once he joins the company and signs the forms, he is automatically appointed.

An appointment letter is a document that states that the candidate is appointed from this day for the position on this salary and is bound by the terms and conditions. It is not that you are appointed after the probation period. You are appointed on day one itself. It is after the probation that you receive a confirmation letter. Many have misunderstood this process.

Whatever it is, a candidate becomes an employee only when he fills and signs the joining formality. When these two systems are followed, some companies forget to issue the appointment letter, and the employee keeps begging. I have seen this myself. By that time, he would have completed a year of service and would have reached the first promotion.

So let's not confuse with it, issue an Offer Letter with a clause: "This offer letter does not give you the employee status of our company. Your appointment comes into effect only after completing the joining formality with us."

Long ago on a TV show 'Boss's Day Out,' Infosys Chief, Mr. Narayanamurthy was shocked to learn the paperwork on the first day and instructed their HR to reduce paperwork to the maximum. He said, 'One document will do.' Let's be Indian as usual.

Just because a wedding invitation is printed and distributed, the bride and groom do not become a couple. After the wedding knot, they automatically become husband and wife. That is confirmed.

Regards,

Chandru

Dear Versha,

Good Day.

It's an important question that many of our people overlook or ignore. I have a personal experience in this regard while I was in New Zealand. Unfortunately, in developing countries like ours, the importance and the differences are not valued. I noted that many responses would have confused so far. It's as simple as follows:

1) An appointment letter is an invitation to join a particular organization to work for. You may accept or reject it and let them know. It doesn't have much legal weight and is usually brief, usually one page in size. (For example, there will be no details of salary or whatsoever.) If you accept an Appointment Letter following a successful job interview, you will get a:

2) Job Offer/Employment Agreement/Offer of Employment are different names for the same thing. It's usually detailed, including your wages, period, benefits, responsibilities, etc. This document has to be signed by both parties. (Remember, an employment offer should always carry signatures from both parties.) It has more legal weight, and you can go to court. I don't know about our country, but in developed countries, there are specific labor courts to handle these sorts of cases.

For more details: for migration purposes, Immigration Departments will ask you for a Job Offer (detailed) and not the Letter of Appointment. So be cautious to get your Job Offer/Employment Agreement from the company that you work for. It will give you some legal protection when issues arise.

Yes, many employers do not prefer to give Employment Offers because they become legally bound upon signing by both parties. You know that many employers try to exploit wherever possible, though not all employers.

Hope this clarifies your confusion. Let me know, please. [Login to view]

Regards,

Razeen Assan

Dear Rajan,

There is a difference between an offer letter and an appointment letter. When a candidate is selected, the company offers him a joining date on or before a certain date. This allows the candidate to submit his resignation letter and join the company on the specified date. The company is bound until that day, and if the person does not join, the company can cancel the offer letter and look for another candidate. The offer letter typically does not include terms and conditions, salary details, or other matters but rather a list of documents to be submitted upon joining.

After the candidate joins the company, the company issues an appointment letter once all required documents are collected, and induction/training begins from that day. The appointment letter includes all legal terms and agreements.

Hope this clarifies the distinction.

Govind Desai

Hi all,

I have come across many discussion threads where two terms are frequently mentioned: offer letter and appointment letter. My questions are:

1. What is the difference between an offer letter and an appointment letter?
One distinction that I am aware of is that the company issues an offer letter to the candidate post-selection, which the candidate can either accept or reject. Once the employee joins the company, the company provides the appointment letter on the date of joining. Are there any other differences?

2. From a legal perspective, what is the difference between an offer letter and an appointment letter?

3. Why do many employers not provide an appointment letter?

Thanks,
Versha Rajan

Dear All,

An offer letter can be provided to the candidate at the time of their final round interview so that the candidate can receive confirmation of the offer and submit resignation to their current company. It typically includes details such as designation, location, date of joining, place of posting, and salary. The candidate has the option to either accept or reject the offer. However, it should be noted that the offer letter itself does not constitute employment confirmation.

On the other hand, an appointment letter serves as the official evidence of the candidate's appointment by the company. It contains information regarding benefits, legal terms, salary breakdowns, leave entitlements, duty hours, transfer terms, responsibilities, and clauses related to termination or resignation.

I hope this explanation provides a clear distinction between an offer letter and an appointment letter.

Mahua Samanta
HR Manager
Kolkata

Dear Rajan,

There is a significant difference between a job being offered to you (for which you stand a chance to reject or accept) and you being appointed or confirmed for a job from the date of joining.

Regards,
Priyanka

Offer letter and Appointment letter are both legal.

When a candidate is selected, the Company offers him/her employment and a tentative date of joining the company. In the offer letter, mostly salary details are not mentioned as many candidates take an offer letter from one company and show it to another company for higher pay before actually joining the company. In the offer letter, only the date of joining and the documents to be submitted at the time of joining are mentioned. The company may not appoint or select any person for the position once offered to a candidate and waits until the candidate joins the company. The company spends time searching for and selecting the required candidate, and if the candidate does not join on the scheduled date, it is a loss to the company as they have to look for another candidate for the vacant position. The candidate is orally informed about the terms, leaves, etc.

An Appointment letter is given on the date of joining the company with full terms and conditions of employment, the full written package offered to the employee, and induction and training start.

Regards,
Govind Desai

Dear All,

There is a vast difference between an Offer Letter and an Appointment Letter.

1) An Offer Letter includes:

- DOJ
- CTC
- Designation
- Job Placement

OBJECTIVE: The main objective behind giving the offer letter is that the organization is offering the job to the candidate. Then it depends on the candidate whether to accept the job or not. If the job offered by the organization is accepted, then the acceptance signature should be done by the candidate and reverted back to the organization, and if not, then not signed.

2) An Appointment Letter includes:

- All details of the offer letter
- Minimum employment terms
- Probation Period
- Leave & Attendance rules
- Rules & Regulations of the organization
- Policies in brief

In our organization, the "Appointment Letter" is given after 15 days of joining.

For getting the Appointment Letter, the Documents must be submitted by the candidates for verification of the candidate.

During the period of 15 days before giving the Appointment Letter, the behavior, attitude, work, sincerity, etc., are checked by the organization. So that the wrong candidate will not be appointed. This is the main objective behind issuing the Appointment Letter.

Regards,

VIRAL SHAH

(HR Executive)

Hi,

I want to know if there is any legal action if a company does not provide you with an offer letter within one month. Please reply.

Really nice thread. Loved reading it. I'm sure most of the people are confused about these terms! I got some amazing replies about the difference between an appointment letter and an offer letter. But, I didn't get the reply as to why employers don't provide an appointment letter. Any specific reasons? My friends didn't receive any appointment letter, and it's been about 2 months. Is this a serious issue that I need to warn him about?

There is a difference. If a candidate is selected, an offer letter is issued so that he can resign from his earlier company based on this letter. In the offer letter, the company states that it is offering him a post and he should join the company before a certain date, also informing him to submit the required documents at the time of joining.

After joining, the company collects the relieving letter, experience letter, and other documents from the employee and issues an Appointment letter stating the period of probation if any, and other terms of employment, cessation of employment, etc. In this letter, the company gives full details of the CTC package offered to an employee.

Certainly, there are differences between an offer letter and an appointment letter. We may say an offer letter is one kind of proposal which states the salary, terms, and conditions of service, etc. Usually, it is furnished before the letter of appointment. Both of the letters have legal value. From an employee's point of view, the appointment letter is a must for the job. If it is issued, the receipt of the offer letter may be ignored.

Thanks,

Md. Iqbal Rabbani
Bangladesh
rabbani_iqbal@yahoo.com

Dear all,

Please provide me with suggestions for an appointment letter. How many points should be mentioned in the appointment letter, and what are the important roles and responsibilities that should be included? Your suggestions are appreciated.

Thank you.

When it comes to the appointment letter, it serves as proof of acceptance of the job offer and willingness to work for the company while agreeing to its terms and conditions. Once the candidate accepts the offer, an acceptance email is sent to the employer to confirm the joining date. Simple.

Role and responsibility is mandatory in an appointment letter - yes or no. Please explain the details as I am a bit confused. I kindly request your help.

Offer letter and appointment letter are two ends of the same thread. Once the candidate has been selected after the interview, he/she receives an offer letter. The offer letter includes basic information about the organization, stating the CTC offered to the candidate along with the benefits that the organization will provide to the candidate as an employee.

On the other hand, an appointment letter is a much more detailed version. It includes a thorough explanation of the policies that the employee needs to abide by. Additionally, it explains the benefits and restrictions the employee has to maintain, along with the probationary details.