Understanding Offer Letters vs. Appointment Letters: Can You Spot the Differences?

Hi, is there any difference between an offer letter and an appointment letter? If yes, then how can they be differentiated? Please reply ASAP.

Thanks,
Gurpreet

They are different. An offer letter offers you the opportunity to join the organization, providing a glimpse of what will be offered to you by the organization along with the option for the date of joining. An appointment letter, on the other hand, is a more detailed document that includes all job-related terms and conditions, encompassing the offerings outlined in the offer letter.

In many organizations, only one letter is issued, which may combine elements of both the offer letter and appointment letter, encompassing all terms and conditions.

Regards,
Javaid

Well, if I may add, the sequence could be like this: Job Ad (by company) - Job Application (by candidate) - Interview (by company) - Job Offer (by company) - On joining (by candidate), Appointment Letter. After the 'Job Offer,' the candidate may choose not to join, but after the Appointment Letter, if the candidate chooses to withdraw the agreement unilaterally, the employee may be required to furnish a notice period and/or compensate for the loss to the company, as the case may be.

Thanks.

The offer letter is different from the appointment letter. After shortlisting a candidate for the job, companies typically provide an offer letter, which broadly contains the total CTC, the period required to join, designation, etc. The candidate may or may not accept the offer. Once the offer is accepted, the next stage begins, which involves the candidate tendering their resignation to their current employer and getting it accepted. From the new employer's perspective, the recruitment process can be concluded once the candidate accepts the offer.

Appointment Letter

An appointment letter is a document that contains a detailed breakdown of the CTC offered in the offer letter, along with all the terms and conditions such as the eligibility for leaves, retirement age in the company, the possibility of transfer to any branch or location of the company, notice period required in case of resignation, etc.

As mentioned earlier, some companies issue the appointment letter at the beginning itself without an offer letter.

Regards,
D. Phani Kumar
DGM-HR
VASAVADATTA CEMENT
(A Unit of B.K. Birla Group of Companies)
Sedam, Gulbarga Dist., Karnataka.