Navigating Offer and Appointment Letters: How to Handle Policy Changes and Training Periods?

Hello everyone,

As I understand, we first provide an offer letter to the selected employees. Then, after their joining, we generate an appointment letter. My question is, can we issue an appointment letter after 3 months? If yes, do we need to issue anything apart from the offer letter?

Policy Change Considerations

My company is planning to change the current policy. They want to decide whether to continue with the candidate after 1 month of training. What should be the proper practice for this?

They want to release someone within a month if they are not performing. If there are chances of improvement, the candidate will be on training for the next month. They also want that for the initial 3 months, we will not pay the full CTC but only the basic salary. I would appreciate suggestions on how we can implement this.

Thank you.

Why delay appointment letters for 3 months?

Why do you want to keep appointment letters pending for 3 months? Even if you issue appointment offers to candidates, and later if they are found to be unfit for the position due to non-performance, you have the liberty to terminate their services. An appointment letter is an employment contract to be issued to candidates before they resume duties or at least on the same day they join the services.

Dear Megha, Paragraph-wise replies to your post are as below:

Hello everyone, as I know first, we give an offer letter to the selected employee, then after his/her joining, we generate an appointment letter. My question is, can we give the appointment letter after 3 months?

Reply: Once the employee joins, the appointment letter has to be issued immediately. Nevertheless, your company must be subject to the provisions of either the Factory Act or Shops and Establishment Act. Please check the provisions of the act in your state, as applicable.

If yes, do we need to issue anything apart from the offer letter?

Reply: Any letter, whether an offer letter, appointment letter, or any other letter, has to be clearly worded. Ambiguity could create problems for you as well as for the newly joined employee.

My company is planning to change the current policy. They want that after 1 month of training, we will decide whether we will continue with the candidate or not. What should be the proper practice for the same?

Reply: If your company wishes to adopt the above practice, then it is free to do so. However, include these provisions in the "Offer Letter". It is up to the job candidates whether to accept these conditions or not.

They want if someone is not performing, we will fire them in a month or if there are chances of improvement, another month of training. They also want for the initial 3 months, we will not pay the full CTC but only basic salary. So, what suggestions can we go for?

Reply: If you wish to adopt these recruitment practices, you are free to do so. However, clearly state all this in the "Offer Letter", which is issued immediately after the selection of the candidate. Subsequently, issue the "Appointment Letter" for the three months. If the newly joined employee meets your requirements, you may issue a permanent appointment letter.

Comments from HR Management Point of view: You have asked certain questions, and they have been replied to. However, reading between the lines, it appears that your company is struggling to attract or select quality candidates. Attracting top-notch candidates depends on the company's brand image. Companies with a good brand image tend to attract top talent effortlessly.

Thank you,

Dinesh Divekar

Thank you so much, Radhakrishnan Sir!

Termination during probation period

So, what can we do if we want to terminate someone after 1 month or during their probation period due to poor performance? Can we adjust something in the CTC offered for the initial months or not?

Dear Megha, this reply is for your second post. If you wish to terminate the employment just after a month because of underperformance, then you may do so. Issue the appointment letter immediately after joining but keep the employee under probation. During the probation period, employees can generally be terminated with just a day's notice. Include this provision in the appointment letter.

However, accountability for the selection of the wrong candidate has to be fixed properly. Action should be taken against those who are involved in the recruitment process as well. It appears that the blame for the wrong selection is simply passed to the selected candidate, and the selector is going scot-free. How long would you like to continue this practice?

Be aware that we live in the age of social media. What if the terminated candidate expresses their outrage on platforms like Facebook, Twitter, mouthshut.com, or glassdoor.com? Once your company's brand image is tarnished, repairing it will not be an easy task, and you may struggle to attract even mediocre candidates in the future!

Therefore, let your management tread cautiously!

Thanks,

Dinesh Divekar

As very clearly mentioned in the earlier posts, you may include or modify the clause(s) on probation in the appointment letter as per your policies. You can add 'performance condition' in the clause on Confirmation.

It is suggested that the CTC offered to the candidate at the time of the final interview shall have to be maintained by your management. No reduction in CTC is recommended. Else, the brand image of the company shall be dimmed in the eyes of prospective candidates, which shall be capable of hampering their performance in your company.

Thank you for providing clear and easily understandable information, which is exactly what was expected. I appreciate your help. I have gained clarity regarding the appointment letter, probation, and the potential modifications to the offer letter as per the clause.

Thanks & Regards,

Pandiyan P

In the case of freshers' recruitment, you can use this practice. In all other cases, the healthy practice is to issue the "Letter of Intent" or "Offer Letter" initially, and the formal appointment letter is issued at the time of joining only.

In most cases, it depends on the employer's branding and work culture. Many employees will view it as an unhealthy practice and may choose not to join your organization, potentially resulting in the loss of a competent employee.

Please do not mix performance issues with the recruitment process. Often, a new employee may struggle to perform not due to lack of ability or capability, but because of a mismatch with the organization's work culture. Acceptance of a new employee can be a complex issue in many organizations due to non-professional practices or a poor work culture.

Thanks and regards,

Yes, sir, you can issue the appointment letter after 3 months following a thorough verification of the candidate's abilities to ensure they align with your company's goals. Better late than never. However, you should mention all the conditions of the regular appointment procedure in the offer letter itself. Only with the candidate's consent can you proceed.

Think for a moment... Your approach seems to be focused solely on the company's interests, which might create tension and insecurity among employees. Remember the saying, "No man is perfect," meaning no human being is flawless. Keep this in mind during your selection process.

Implementing strict, military-like rules may not be the best approach, so please reconsider. Every employer has the right to filter and select the best candidates for their company, but it's important to prepare everyone for your expectations.

Importance of an Appointment Letter

An appointment letter is a documentary proof for employees to claim their rights and benefits from employers, so the issuance of an appointment letter is mandatory.

Please let me know if you need any further assistance.