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

Hi,

Please tell me, what is the difference between an Offer Letter and an Appointment Letter? If you have a format, please enclose a copy of both letters.

Thank you,
Altaf Sayyed

An offer letter is not a contract unless the terms are agreed upon by you. The terms of offer and acceptance, which are incorporated in the appointment letter, form a valid contract, and the liability of the company is governed by the terms in the appointment order!

Arun, hello

Hi,

An offer letter, also known as LOI or Letter of Intent, is an invitation to join the organization and generally contains the position, documents required at the time of joining, and remuneration.

The appointment letter is a valid document, or you can say a contract letter, which outlines the terms of agreement between the employer and employee in detail.

Please let me know your views.

Regards,
Bishwajeet

Hi,

The Offer Letter simply states that based on your interview performance, the company is offering you a particular position with a brief overview of the salary structure. On the other hand, the Appointment Letter outlines the terms, conditions, and policies of the company, including details regarding benefits and compensation.

Regards,
Shweta

Hi,

Offer Letter:

An offer letter is not an agreement between two parties (employer and employee). The first party proposes a candidate through the HR department for employment. It consists of the following things:

1. Designation
2. Compensation & Benefits
3. Location of Job
4. Date of joining
5. Type of Employment

It never states an agreement between two parties. It is a proposal.

Appointment Letter:

If the offered candidate is interested in joining the employer, on the day of reporting, the employer issues an appointment letter to the employee, which is an agreement between two parties. It consists of:

1. Terms and Conditions of Employment
2. Non-Disclosable conditions
3. Salary break-up
4. Expectations

The content depends on the policies of the employer.

Regards,
S2

After the offer letter is accepted by both the employer and the employee, can it be rejected? In other words, can the employee be prevented from joining the company after agreeing to take on the post offered to them?

I don't think that it would be a healthy HR practice. A company can't deny the written offer wherein an employee can turn it down if needed. Honestly, I have not seen any company denying the offer that has already been given to the new joiner (soon to be).

Mr. D.S. Singh,

There is no question of accepting the offer by the employer; it is the employer who offers the offer letter to a candidate for joining the organization. Usually, the offer letter is given with a tentative date of joining "On or Before." Like medicine has an expiry date, similarly, the offer letter also has an expiry date. Most companies use language like "this offer letter is valid till................"

Hi,

Both employees and employers have the right to deny the offer letter as it is not a legal binding on anyone. The latest example of this is IT firms denying joining to freshers because of the recession. In campus recruitment, we receive offer letters from many companies but ultimately join one and refuse others.

First, providing the written letter and then denying is not a good HR practice. During the finalization process, HR conducts various methods to choose any worthwhile candidate.

Hi,

Yes, it can be. Sometimes an employer may reject an offered candidate due to various reasons. However, the candidate can take legal action against the employer.

Regards,
S2

A Letter of Intent (LOI) is just an invitation; it's not an obligation to the company. Neither does the company have an obligation to offer you employment, nor do you have the right to receive the offer.

The Compensation Package (CTC) isn't mentioned in this letter. An LOI is a healthy HR practice, which means that if you are provided with an Offer Letter, it is certain that you are considered an employee of the company. This is not the case if a LOI is provided.

Hi Altaf,

If you don't know the differences between an offer letter and an appointment letter, then please consider leaving the HR field and not wasting your own and others' time. We have worked together for two years in the same company and the same HR department.

Regards, Ganesh Chavan HR Manager