Employment offer letter

A clear offer of employment, with the salary broken down rather than stated as one number.

When you would use this

You have decided to hire someone and want the offer in writing before they resign from where they are. This is the offer; the appointment letter that follows is the contract.

What goes wrong with this one

The document is the easy part. These are the things we actually see get it rejected or cause a problem later.

Break the salary into components. A single CTC figure is the most common cause of a new joiner feeling misled in month one, when the deductions land.
State clearly that the offer is conditional on whatever it is actually conditional on — background check, documents, relieving letter from the previous employer. An unstated condition cannot be relied on later.
Give the offer a date by which it must be accepted. Open-ended offers get used as leverage elsewhere.
Do not describe someone as a consultant in an offer letter and then treat them as an employee. The tax and PF consequences follow the substance, not the label.

The template

Every placeholder is written in [SQUARE BRACKETS] so an unfilled one is impossible to miss in a printed document.

Employment offer letter

[COMPANY LETTERHEAD]

Date: [DD MONTH YYYY]

[CANDIDATE FULL NAME]
[ADDRESS]

Dear [FIRST NAME],

OFFER OF EMPLOYMENT

We are pleased to offer you the position of [JOB TITLE] with [COMPANY NAME].
We were impressed by what you brought to the conversation, and we would like
you to join us.

The principal terms are set out below.

    Position:            [JOB TITLE]
    Department:          [DEPARTMENT]
    Reporting to:        [NAME AND TITLE]
    Place of work:       [LOCATION]
    Expected start date: [DD MONTH YYYY]
    Probation:           [NUMBER] months

Remuneration

    Basic salary                        [AMOUNT] per annum
    House rent allowance                [AMOUNT] per annum
    Special allowance                   [AMOUNT] per annum
    Employer contribution to provident  [AMOUNT] per annum
      fund
    Gratuity, as applicable             [AMOUNT] per annum
    -------------------------------------------------------
    Total cost to company               [AMOUNT] per annum

    Statutory deductions — employee provident fund contribution, professional
    tax where your state levies it, and income tax deducted at source — will be
    made from your monthly salary in accordance with law.

This offer is conditional on:

    (a) verification of the documents and references you have provided;
    (b) your producing a relieving letter from your current employer;
    (c) [ANY OTHER CONDITION — delete if none].

Please confirm your acceptance by signing and returning a copy of this letter
by [DD MONTH YYYY]. A detailed appointment letter setting out the full terms of
employment will be issued to you on joining.

We look forward to working with you.

Yours sincerely,
For [COMPANY NAME]


_____________________________
[NAME]
[DESIGNATION]


I accept the offer of employment on the terms set out above.


_____________________________
[CANDIDATE NAME]           Date: [DD MONTH YYYY]

This is a starting point, not advice

It is a general template and is not tailored to your business. Requirements change, and some vary by state. Have the completed document checked before you sign, file or rely on it.