Last updated: 9 November 2026
- Appointment letter vs offer letter
- What an appointment letter contains, with red flags
- 5 employer-style samples
- What to check before signing
- How to ask for a change
- Mistakes to avoid
- Under the labour codes notified on 21 November 2025, employers must issue an appointment letter to every employee.
- At least 50% of total pay generally has to count as wages (basic + DA and retaining allowance) for PF, gratuity and similar purposes.
- Post-employment non-competes are void under Section 27 of the Indian Contract Act. Restrictions during employment and confidentiality clauses are a different matter.
- Fixed-term employees get gratuity after 1 year; others after 5 years.
Sources: OSH Code, 2020; Code on Wages, 2019; Code on Social Security, 2020; Indian Contract Act, 1872, s.27.
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| Offer letter | Appointment letter | |
|---|---|---|
| When it comes | After you clear the interviews | Just before or on joining day |
| What it covers | Role, CTC, joining date, a few conditions | Full terms: duties, pay structure, probation, notice, leave, conduct, termination |
| Length | 1–2 pages | Often 3–10 pages with annexures |
| Can it be withdrawn? | Yes, before you join (often with no compensation) | It's the contract once both sides sign |
| Your action | Accept within the deadline | Read every clause, ask questions, then sign |
Some companies combine them into one "offer-cum-appointment letter". If so, read it with the same care as an appointment letter. Our offer letter format guide covers the earlier stage, and our joining letter format guide covers what you hand in on day one.
What an appointment letter contains, with red flags
| Clause | What normal looks like | Red flag |
|---|---|---|
| Designation and reporting | Title, level, team and manager | No title, or "any role as assigned" with no level |
| Joining date and location | Exact date and city | "Any location in India" for a role you were told is local |
| Compensation | CTC with an annexure splitting basic, HRA, allowances, PF, variable | Only a CTC number, no breakup |
| Variable pay | Clear criteria and payout schedule | "At management's discretion" with no plan in writing |
| Probation | 3–6 months, extendable once | Open-ended or repeatedly extendable probation |
| Notice period | 30–90 days; may be shorter in probation | Different notice for you vs the employer, e.g. 90 days vs 1 day |
| Service bond / training cost | Actual training cost, reducing month by month | Large flat penalty (e.g. ₹2–3 lakh) or holding original certificates |
| Non-compete | Applies only while employed | Bars you from working for competitors for 1–2 years after leaving |
| Non-solicitation | Don't poach clients or staff for a period | Very broad wording covering anyone you ever met |
| Confidentiality and IP | Work done for the company belongs to it | Claims on personal projects done in your own time |
| Leave | Refers to a written policy | No mention of leave at all |
| Termination | Notice or pay in lieu; misconduct process | Termination "at any time without reason or notice" |
| Background check | Subject to verification | Fine; just make sure your dates and CTC match |
On non-competes: a clause that stops you working for a competitor after you leave is generally unenforceable in India, because Section 27 of the Contract Act voids restraints of trade. Courts do uphold confidentiality and reasonable non-solicitation. On notice and exit pay, see our guides on notice period and probation period.
5 employer-style appointment letter samples
These show what you are likely to receive, so you can spot what's normal and what's missing. Real letters will include the company's own annexures.
1. IT / software company
BluePeak Software Pvt Ltd Whitefield, Bengaluru 560066 Ref: BPS/HR/2026/418 Date: 12 November 2026 Mr. Rohit Sharma [Address] Subject: Letter of Appointment – Software Engineer Dear Rohit, We are pleased to appoint you as Software Engineer (Level L2) in our Payments team, on the following terms: 1. Date of joining: 1 December 2026. Place of work: Bengaluru, hybrid (3 days in office). 2. Compensation: Annual CTC of ₹14,00,000, as detailed in Annexure A. 3. Probation: 6 months, extendable once by up to 3 months on written notice. 4. Notice period: 30 days during probation; 60 days after confirmation, from either side. The company may pay salary in lieu of notice. 5. Working hours: 40 hours a week, Monday to Friday. 6. Leave: as per the company leave policy (Annexure B). 7. Confidentiality and IP: all work created in the course of employment belongs to the company (Annexure C). 8. Background verification: this appointment is subject to satisfactory verification. Please sign and return a copy of this letter as your acceptance. For BluePeak Software Pvt Ltd (Signature) Head – People Accepted: ______________ Date: ________
2. Sales role (with targets and incentives)
Crestline Retail Ltd Mumbai Date: 12 November 2026 Mr. Karan Mehta Subject: Appointment as Area Sales Manager – West Dear Karan, We are happy to appoint you as Area Sales Manager for the Mumbai and Thane territory, reporting to the Regional Sales Head. Fixed pay: ₹7,20,000 a year (Annexure A). Variable pay: up to ₹1,80,000 a year, paid quarterly, based on achieving the targets in the Sales Incentive Plan. The plan may be revised each financial year and will be shared in writing. Travel: reimbursement as per the travel policy; a two-wheeler allowance of ₹4,000 a month. Probation: 6 months. Notice period: 30 days on either side. Transfer: you may be transferred to any location in Maharashtra with 30 days' notice. Please sign below to accept. For Crestline Retail Ltd HR Manager
3. Fresher trainee
Northwind Technologies Ltd Pune Date: 20 October 2026 Ms. Sneha Kulkarni Subject: Appointment as Graduate Engineer Trainee Dear Sneha, Further to your campus selection, we are pleased to appoint you as Graduate Engineer Trainee. Training period: 12 months from 5 January 2027, including 3 months of classroom training at our Pune centre. Stipend during training: ₹30,000 a month. On successful completion, you will be confirmed as Engineer at an annual CTC of ₹5,40,000. Service agreement: you agree to serve the company for 18 months from the joining date. If you leave earlier, you agree to repay the actual training cost, up to ₹75,000, reduced in proportion to the months served. This appointment is subject to your passing your final semester with no backlogs. Please bring your signed acceptance on the joining day. For Northwind Technologies Ltd Manager – Talent Acquisition
4. Contract / fixed-term employment
Avanti Finserv Pvt Ltd Gurugram Date: 25 November 2026 Ms. Neha Arora Subject: Fixed-term appointment – Data Analyst (Project Sentinel) Dear Neha, We are pleased to offer you fixed-term employment as Data Analyst for Project Sentinel. Term: 12 months, from 4 January 2027 to 3 January 2028. The term ends automatically on that date unless extended in writing. Pay: ₹75,000 a month, gross. Statutory deductions (PF, professional tax, TDS) will apply. Benefits: hours, wages, allowances and other benefits will be the same as those of permanent employees doing similar work, in line with the labour codes, including gratuity on a pro-rata basis if you complete one year. Notice: 15 days on either side for early termination. Please sign and return this letter to confirm. For Avanti Finserv Pvt Ltd Head – HR
5. Government-style appointment order
Government of [State] Office of the [Department] No. [File number] Date: [date] OFFICE ORDER On the recommendation of the [Recruitment Board], Shri/Smt. [Name], Roll No. [number], is hereby appointed as [Post] in Pay Level [X] of the Pay Matrix (₹[amount]), plus allowances as admissible, on a temporary basis, on the following conditions: 1. The appointment is on probation for [2] years, which may be extended. 2. The appointment is subject to verification of character and antecedents, caste certificate (if applicable) and medical fitness. 3. The appointee will be governed by the [National Pension System] and other rules in force. 4. If the appointee does not join within [30] days of the issue of this order, the offer will lapse automatically. 5. The appointee may be posted anywhere in the State. (Signature) [Designation] Copy to: the appointee; the Treasury Officer; personal file.
What to check before signing
- Match it to your offer letter. Title, CTC, joining date and location should be the same. If anything changed, ask why before you sign.
- Read the salary annexure. Check basic, HRA, PF, gratuity and variable pay. Is the variable part guaranteed or tied to targets?
- Work out your take-home. CTC is not in-hand pay. Employer PF and gratuity sit inside CTC.
- Check probation and notice for both sides.
- Look for a bond or training-cost clause. Note the amount, the period and whether it reduces over time.
- Read non-compete and IP clauses, especially if you freelance or have side projects.
- Find the leave and benefits policy it refers to; ask for a copy.
- Keep a signed copy of every page and annexure.
Worked example: does the CTC add up?
Reading the annexure
Letter says CTC: ₹14,00,000 Annexure A: Basic: ₹5,60,000 (40%) HRA: ₹2,80,000 Special allowance: ₹3,38,800 Employer PF (12% of basic): ₹67,200 Gratuity (4.81% of basic): ₹26,936 Performance bonus (target): ₹1,27,064 Total: ₹14,00,000 Check 1: Basic is 40%, but the labour codes generally need wages to be at least 50% of total pay. Ask HR how they apply the 50% rule; PF and gratuity may be worked out on a higher base. Check 2: ₹1.27 lakh is variable, so fixed pay is about ₹12.73 lakh. Check 3: Monthly in-hand is fixed pay minus employer PF and gratuity, minus your own PF, professional tax and TDS.
How to ask for a change
You can question terms politely. Companies change letters more often than people think, especially for typos, location and notice clauses.
Sample: questioning clauses before signing
Hi Anjali, Thank you for the appointment letter. Before I sign, I wanted to check two points: 1. Clause 4 says the notice period is 90 days after confirmation. My offer letter mentioned 60 days. Could you confirm which applies? 2. Clause 9 has a training bond of ₹2,00,000 for 2 years. Could you share how this amount is calculated, and whether it reduces with each month served? I'm excited to join on 1 December and happy to discuss on a call. Regards, Rohit
Mistakes to avoid
| Mistake | Fix |
|---|---|
| Signing on the joining day without reading | Ask for the letter a few days early |
| Comparing only CTC across offers | Compare fixed pay and in-hand |
| Ignoring the bond clause | Note the amount and period; ask if it's pro-rated |
| Handing over original certificates | Give attested copies; originals are only for verification |
| Not keeping the annexures | Keep a signed copy of every page |
| Assuming a post-exit non-compete binds you | It's generally void in India, but don't breach confidentiality |
Appointment letters also matter at exit: your notice period, leave encashment and full and final settlement all flow from them.
FAQs
What is an appointment letter?
A formal letter from the employer confirming your job and its terms: designation, joining date, pay, probation, notice period, leave, conduct and termination.
Is an appointment letter mandatory in India?
Yes. Under the labour codes notified on 21 November 2025, employers must issue an appointment letter to every employee.
What is the difference between an offer letter and an appointment letter?
The offer letter offers the job with headline terms. The appointment letter confirms it with full terms and acts as your employment contract.
Can an appointment letter be cancelled?
Once you have joined, ending employment has to follow the termination terms in the letter and the law. Before joining, companies sometimes withdraw; keep all communication in writing.
Is a service bond in an appointment letter legal?
Courts usually allow employers to recover a reasonable training cost. A large flat penalty unrelated to actual cost may not be enforceable, but check with a lawyer if the amount is big.
Is a non-compete clause enforceable in India?
A non-compete that applies after you leave is generally void under Section 27 of the Indian Contract Act. Confidentiality and reasonable non-solicitation can be enforced.
What should I check before signing an appointment letter?
Title, CTC breakup, fixed vs variable pay, probation, notice period for both sides, bond, non-compete, IP, leave policy and location.
Can I ask HR to change my appointment letter?
Yes. Ask politely in writing, point to the clause and your offer letter, and request a corrected copy before signing.
Do fixed-term employees get an appointment letter?
Yes. It should state the term, end date and pay. Under the labour codes, fixed-term employees get the same benefits as permanent staff doing similar work and gratuity after one year.
