Understanding Offer Letters vs. Appointment Letters: Can You Share a Sample Format?

Hi, I registered myself recently on this site. It is excellent. I am pursuing my PGDHRM, currently working on a project on employee files. I want to understand the difference between an offer letter and an appointment letter. Additionally, I would like to know the contents of an appointment letter. If anyone could provide a sample format of an appointment letter, it would be very helpful. Thank you. :)

Hi Sowmyavijay,

"I registered myself recently on to this site. It is excellent."

Thanks for your encouraging compliments! 😄 We look forward to your active participation in this forum as well.

"I am pursuing my PGDHRM, presently doing a project on employee files. So, I wanted to know the difference between an offer letter and an appointment letter. I also wanted to know the contents of an appointment letter. If anyone could send a format of an appointment letter, it would be very helpful."

Difference between offer letter & appointment letter:-

An offer letter is given when:

You are negotiating with the candidate and have finalized his salary and other details which he/she may agree upon.

It's not a final document as she may or may not join your organization. There are instances when the candidate doesn't join the organization. Here he/she is supposed to accept the same by signing it. It's important to mention the clause that if the candidate doesn't provide a copy of acceptance of his resignation letter, then the offer letter stands null and void.

An offer letter entails the following:

1. Position offered.
2. Reporting structure.
3. Date of joining.
4. Salary in annual CTC.
5. Location.

Once the employee joins the organization based on the offer letter, then he/she is given the appointment letter after receiving the relevant docs like:

- Degree certificates
- Experience certificates of previous organizations
- Employee Information form

The appointment letter details the general terms and conditions, especially the services.

Shall send the format.

Regards,

Rajat

Hi,

Rajat's points are accepted. Here's another bit of logic.

When we issue an "offer letter," it represents a stage that a recruitment decision has been made, all documents, certified copies, photographs, etc., have been received. The date of joining is also settled. The appointment letter is not issued at this stage as often we have found that the candidate (mis)uses the letter to bargain with his employer for a raise. He may or may not have resigned.

It is to protect mutual interests and avoid probable misuse that we issue the appointment letter ONLY after the candidate actually joins employment. And we do ensure that he receives the letter on the first day he joins and makes a joining report in the standard format. We feel it is a cautious but safe approach.

The appointment letter is a contract of employment and, therefore, stipulates besides the essentials mentioned by Rajat, the terms & conditions of employment between the candidate and the employer. Since the employer is empowered to act only on the basis of the covenants stated in the said letter or the applicable law, it needs to be rather detailed and comprehensive. It should be drafted to suit each organization's needs.

Regards,

Samvedan

December 14, 2005

I want to know if any company issues the appointment letter directly without issuing the offer letter, what kind of problems will occur?

Another Query:

When should I issue the confirmation letter? Please provide me with the format for the same.

Regards,