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Learn more about Employment Offer Letter in India

The employee Offer Letter is one of the significant documents when onboarding employees. An offer letter is a document that includes all the terms and conditions. Therefore, an offer letter is an extremely important document that contains important data identifying the terms and conditions of the employee’s employment. Download our Employment Offer Letter after you have identified the ideal candidate for your organisation and when you want to make a job offer. This is the first step in recruitment before drafting an Employment Contract. This job offer letter includes important information such as remuneration, roles, duties and other employment conditions and policies specific to your organisation.

Table of contents


What is an Employment Offer Letter?

First and foremost, the employment offer letter in India is a basic formal employment offer template that an Indian company uses when offering a full-time or part-time position to a candidate. Usually, this offer letter would be sent after the potential new employee has completed the interview process to clarify the employment offer’s terms and avoid any disputes related to salary, job title, benefits, or hours. This India employment offer letter is suitable for independent traders, partnerships, or companies based anywhere in India and records the basic requirements for employing an employee in India. This Employment Offer Letter in India is not suitable for independent contractors. For this type of service provider, we suggest you to use a consulting agreement or service agreement.

Secondly, an employment offer letter in India is a formal written communication sent to a job applicant by an employer. The employment offer letter confirms the position, compensation, and the employment offer’s start date. Employment offer letters are usually sent after the candidate has passed all rounds of interviews and has been approved by the hiring manager. The letter is submitted before hiring contingencies such as background checks, and references, among others. Once approved, the employment offer letter is signed by the candidate and the employer.

Finally, while an offer letter is an official document communicating the appointment to the candidate, it is significant to understand that a job letter is not legally binding, and the candidate may choose not to join the organization despite signing the letter.

What is the applicable law for a Job Offer Letter?

Employment may be subject to the terms and conditions of the Shops and Establishments Act or the Factories Act, depending on the business’s nature conducted by the employer. Each state in India has its Shops and Establishments Act which sets out certain conditions regarding hours of work and overtime.

When is an Employment Offer Letter used?

Then, once the document is completed and printed, it can be signed by the Employer and then signed by the employee in person or sent to the employee by registered mail, after which the employee can sign and return it.

➤ As a record of the employment contract’s proposed terms between the parties which the Employer then intends to follow up with a formal employment contract
➤ The offer letter itself can be used as an employment contract that will become binding on the parties once signed by the employee

Then, once the document is completed and printed, it can be signed by the Employer and then signed by the employee in person or sent to the employee by registered mail, after which the employee can sign and return it.

What are the Job Letter's details?

Here are some details that must be mentioned in the employment offer letter in India:

1. Company logo: As with any other contract, use your company’s official letterhead when writing offer letters to potential candidates. This gives an impression of professionalism and authenticity that inspires confidence in the potential candidate and encourages them to read on;

2. Date, candidate information, and subject line: To begin your offer letter, list the date the letter was written, the candidate’s first and last name, and current address in the left-hand corner. Next, write the subject line as “Job Offer” and align it in the center for better structuring and presentation;

3. Greetings and opening statement: When you begin writing your offer letter, there are two main things you want to convey. The first is the excitement of having a new person on your team and the second is the tone used to help them feel comfortable in their new environment. The best practice is to start your letter with “Dear”, followed by the person’s first name and an opening statement such as “We are very pleased to offer you a position at [company name]” or “We are very excited to have you on our team at [company name]”;

4. Job title, employment type, and employment duration: Once you have chosen your opening statement, it is necessary to list the employment’s main details, the position for which the candidate has been hired, and the employment nature. And the employment duration if it is an intern or a contract employee;

5. Starting date and responsible personnel: After indicating the position’s specifics, it is necessary to mention the job’s starting date and the person to whom the candidate will report within the company;

6. Compensation and benefits: So far, you’ve managed to write a compelling opening statement and mention the job’s details. Now it’s time to communicate to the potential candidate the compensation. Essentially, this means stating how much the potential candidate will earn per month and year. Or, in the case of freelancers, it could be compensated based on hours of productivity or tasks completed;

7. Required documents and offer letter deadline: In the letter, you share with your potential employees, you can also list the documents required for administrative purposes. You can then ask the candidate to share these documents with the signed letter or present them on their first day of work. On the other hand, recruiting is a process that no company wants to spend a lot of time on, as it leads to increased expenses and lost business due to decreased productivity. To remedy this problem, you can set a deadline by which the potential employee must send the signed letter;

8. Appreciation: Once you have mentioned all the necessary clauses and the employment details, it is significant to end your letter on a positive note that gets the candidate excited and eager to join your organization;

9. Required signatures: It is significant to ensure that the letter is genuine and mutually agreed upon by the employer and the potential employee. Once the letter is signed by the candidate, it must be signed by the hiring manager. If your company does not have a dedicated recruiting or Human resources team, the letter should be signed by the final decision maker, the CEO, or General Manager.

How to write an Employment Offer Letter?

Firstly, employment offer letters in India are printed on the employer’s letterhead and signed by the Management or the Human Resources Manager authorized to hire the candidate. It is usually accompanied by some sort of seal or trademark to give it an added quality of formality and importance. If the candidate accepts the position, the candidate must sign a copy of the letter himself and return it to the employer to indicate the employment offer’s acceptance.

Secondly, on the one hand, the company’s human resources manager or the company’s manager can use this offer letter format to inform a candidate of his employment’s successful evaluation. On the other hand, through this job letter offer process, a candidate can also be sure that he is employed and will be ready for a job. He can get the respective benefits as per the terms and conditions.

Who can sign the Offer Letter?

It is significant that the employment offer letter in India is genuine and mutually agreed upon by the employer and the prospective employee. Once the letter is signed by the candidate, it must be signed by the hiring manager. If the company does not have dedicated recruitment or Human Resources team, the letter should be signed by the final decision maker, the CEO, or the Managing Director.

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