Is It Normal to Work Without an Offer Letter for 3 Months? What Should I Discuss with My Employer?

Hi, my name is Ashish. I am working as a Marketing Executive in an organization for the last 3 months. I have been regularly asking about my offer letter, but they have been avoiding me for the past 3 months. Despite this, they are paying me 15k, which I had agreed to during the interview. There is no HR department in the company, only 3 directors and a staff of 8 people. No one has discussed the payment structure with me, and there are no deductions for PF. Additionally, there is no TA or DA provided, but I still receive all expenses when I am out for a Sales Call.

Concerns About Employment Terms

I want to ask, what are the essential things that I should discuss with my employer? Is this the right organization for me to work in?

Please advise.

Regards,
Ashish

Working in a Small Organization: Key Considerations

In a small organization, owners often do not focus on formalities like appointment letters. You need to decide whether you are comfortable working in such a company.

More importantly, you should have clarified these aspects, including your terms of employment, when you joined. However, you can still ask for clarification now if you wish.

Many small companies do not provide an appointment letter due to concerns about misuse. In many cases, the owner either lacks the time or the knowledge to write it. Their primary focus is on running the business, not on HR formalities.

If you are receiving your agreed salary, your main concern should be obtaining an experience certificate and a relieving letter if you decide to leave someday. Generally, no one asks for a copy of the appointment letter.

Understanding TA, DA, and PF in Small Companies

- TA (Travel Allowance) and DA (Daily Allowance) are not mandatory in a company. It depends on your company's policies. If they reimburse you for actual expenses, you may not receive TA or DA. Typically, TA and DA apply to outstation visits.
- PF (Provident Fund) does not apply in our company.
- Where no salary structure is provided, all salary will be considered basic. Small companies usually do not concern themselves with these details unless the salary exceeds taxable limits.

Regards.

I have also encountered the same problem; I haven't received my appointment letter for the last three months. They agreed to pay me 12,000 (7,000 fixed and an additional 5,000 depending on my performance), but they are only paying me 7,000. I work for a real estate company, and I have achieved two sales totaling 8,000,000 in the last two months. Despite this, I am not receiving any incentives. What should I do?

Did your employer specify a limit for your performance at the time of appointment for payment of such incentives? As to what level they consider your performance satisfactory. If they are still not paying any incentive to you, it is better to ask them the level of performance they expect. For example, in monetary terms, how much business they want from you in a month or so to deem your performance satisfactory. It would be beneficial for you to request them to set a target for you. If you achieve that target, you can then claim your incentives. It is advisable to obtain written consent or send them an email for documentation purposes.

Additionally, some companies provide an appointment letter or a confirmation letter upon the completion of the probation period. Therefore, it would be best to inquire if you are currently in your probation period and its duration.

I hope this information is helpful to you.

Regards, Renuka

I will talk with my employer about all the terms and conditions and will clarify the incentives. Thank you, Sir and Renuka, for your guidance. Good to know you!

Warm Regards,
Ashish

Just a point of warning: Owners of small companies often get upset when asked such things. They may feel like they are being questioned or that the employee is asking for things without proving themselves through their work, etc. (I was in a similar mindset once upon a time). So, when you talk to your employer, be polite and clarify to them first that you wish to get some things clarified so that you have a clear goal to work towards.

For an appointment letter, tell them you need to show it to the bank for taking a loan, etc., so can you please issue it to me. You may have to draft it yourself in the end (this happened in one firm I worked for. The owner said - okay, make it, I will sign it. I don't have time to make it).

Ensure your approach is non-threatening but one where you are asking for a favor/cooperation. I would be curious to know the result, so please post it here or send a personal message to me.