Is My Job Secure Without an Appointment Letter? Seeking Advice on Company Policies

I have joined a new company as a Sr. HR Executive. Before joining, they told me that on the day of joining, I would receive an offer letter, and after the completion of probation, they would provide me with an appointment letter. Now, I have come to know that there is nothing like an appointment letter, but they simply issue a confirmation letter. The company is ISO certified. They have informed me that they will provide me with all company benefits such as PF, Bonus, and 21 Paid Leaves after I am confirmed. I would like to know if this is okay or if there is any risk. Is my job insecure?

Understanding Offer and Appointment Letters in Companies

It is kind of weird. In many companies, they first give an Offer Letter, and on the day of joining, they provide a Letter of Appointment. There are some other companies that do not issue any Offer Letter but give a Letter of Appointment before or on the day of joining to their employees. No company defers the release of the Appointment Letter until the completion of the Probation Period. Upon completion of probation, employees are given a "Letter of Confirmation." All monetary benefits, such as PF, ESI, Gratuity, etc., are provided from the day of joining and not after the completion of the Probation period.

Understanding ISO 9001 Certification and Job Security

Simply having an ISO 9001 certification doesn't imply it's a good company or that they make good products or services. Job security in such a concern would depend on the whims and fancies of the employer. Your future career prospects depend on the marketable skills acquired today. Find out what you will be learning in the next 2-3 years in tangible terms, and then decide.

Where have you joined and how many days has it been? In case there are not too many days since you received the appointment letter/email, you may wait. Otherwise, you can talk with your company's HR and simultaneously look out for a change.

I opine that the beginning should involve somebody somewhere. Hence, as an HR Sr. Executive, you should communicate very professionally and politely regarding the risks behind the wrong practices. There may be some professional and intelligent people in every organization; identify and implement accordingly.

As told by some of our friends, the offer letter is to be issued upon selection, based on which the candidate submits his/her resignation. Within a week's time, the appointment letter should be given. The confirmation letter comes after the successful completion of probation. ESI, PF, PT, etc., are to be implemented from day one of the employee's joining and should even extend to contract or casual workers. If the company continues with the present scenario, they will face substantial penalties for noncompliance. Hence, appraise them of the consequences. If the work culture and atmosphere are acceptable, continue; otherwise, consider switching to another job.

I strongly feel that someone has to "bell the cat." Why not you?

Regards,
Kamesh

I can suggest that you be polite and try to dig into the details about the company while simultaneously looking out for any potential changes. To the best of my knowledge, no company will outright state that they will issue the appointment letter after your probation period. However, if you have the authority to do so, consider advocating for a change in this policy. Taking such initiative may set you apart, and employees may appreciate it.

All the best. 

Regards,
Swetha Kiran

There are plenty of employers who do not fulfill social compliances (labour laws). In fact, certain sectors are notorious, e.g., garment export.

Company Policy vs. Labour Laws

To address what Swetha has said regarding the presence of a company policy of giving appointment letters after completion of the probation period, a company policy cannot be subservient to the law. The downside of putting your foot down and asking for the letter is that you may have to leave, or else bow down. Employers/owners won't change overnight.

Hello HR friends, the same problem exists in my firm as Mandy had mentioned. My company has been working in the field of agri-horticulture since 1983, but they have never issued any appointment letters to anyone except for some seniors. There is also no HR personnel in our office; the accounts person handles these matters.

Work Culture and Appointment Letters

The work culture here is such that no one raises their voice. Recently, they have started issuing appointment letters with a condition that the individual must work in the company for 3 years and cannot work in a similar profile organization during that time. Additionally, they are asking for a payment of around 2 lakhs. Is this right? Please guide me.

Thanks,
Sudha Sundriyal

I joined this company 10 days ago, and the culture is okay. However, there is a lot of attrition. Due to this, the recruitment process seems never-ending. I feel that because of the high attrition rate, they may not be issuing appointment letters. It is a growing company, and I personally believe that if they want to earn a good reputation in the market, they need to follow all HR processes properly.

The Importance of an Appointment Letter

An appointment letter is the "contractual obligation" between you and the organization. If you do not have this, then both parties are exposed. It is in the interest of these parties to have an appointment letter.

Understanding Offer and Appointment Letters

Offer letters are given upon selection, outlining the designation, profile, remuneration, location, and the specific date by which the candidate has to join. On the date of joining, prescribed HR forms such as PF and gratuity are given, and the candidate has to submit these forms. The appointment letter should be given during the induction process. Each company must adhere to relevant laws.

Requesting Necessary Documents

If you wish to join, ask for the appointment letter in a polite manner. You may also request a copy of the employee rule book and certified standing orders.

Caution Against Unscrupulous Employers

Be cautious and avoid unscrupulous employers.

Joining Process and Confirmation

On joining, the employer provides an offer letter. At the end of the month, an appointment letter is also given. Without returning a signed copy, the first salary is not released. Upon completing the probationary period, a confirmation letter is issued with congratulations, and we become permanent employees.

As per labor legislation, whether an employer has issued an appointment letter or not is immaterial if you can prove that you have worked there. Even for availing service benefits, the legal position remains the same. The intention behind not issuing an appointment letter is to assess the suitability of a new employee and to terminate their services if they are not suitable for the employer. On the other hand, your concern is whether your appointment is secured if the letter of appointment is not issued.

Pragmatically speaking, if you are truly capable of delivering results to the best satisfaction of the employer, no employer would intend to terminate your services. This is because there are not many good employees who can achieve the results expected by the employers. Therefore, it is better to concentrate on your work and become a favorite employee of your employer.

Regards,
Satyesh

Understanding Appointment and Confirmation Letters

Actually, they have to give the appointment letter. But now they have only given you a confirmation letter. The reason is that most candidates leave the company after receiving the appointment letter stating the current CTC. So, confirmation letters are now issued. After the probation period (6 months), they issue the confirmation letter, which is the appointment letter meaning you are a permanent employee of our company.

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I am not saying it's bad that HR is present, but at least there should be someone who can answer our questions about leaves, establish a proper hierarchy for what we should achieve through our work, not just focusing on money and designation, and address many small issues. We have an accounts person, but when we ask for something important, he prioritizes his work, only paying attention to us when we are about to leave or when it's not important for a few days.

I am not complaining about the salary; it's just a bargaining game. I am solely interested in helping my company. Concerning the offer letter, when anyone joins here, they should be required to provide all documents, including a relieving letter. However, on their side, the process seems to be dragged out. I can manage as I have contacts with superiors who can assist me, but I genuinely want to contribute to my company, ensuring that the basic needs of everyone working here are taken care of. I hope you can guide me in the right direction.

Thanks,
Sudha Sundriyal

As per my knowledge, there are no relations to the issue of appointment letters to anybody, whether they will be confirmed or not. Many companies first issue offer letters, and after joining, they will issue appointment letters. Unfortunately, most of us don't know the actual rules, so there are a lot of unprofessional companies and their mostly unprofessional staff making rules as per their wish. It's India, and it can only happen in India.