An appointment letter confirms the employee's name, designation, category (permanent, probationer or fixed-term), date of joining, place of work, wages and their components, working hours and weekly off, leave entitlement, probation and confirmation, notice period, statutory benefits (PF, ESI, gratuity, bonus), conduct and confidentiality terms, and the grounds and procedure for termination. Both sides sign it, and the employee keeps a copy.
Appointment letter format
[COMPANY LETTERHEAD] Date: [DATE OF JOINING] Employee code: [CODE] To, [EMPLOYEE NAME] S/o / D/o / W/o [NAME] [PERMANENT ADDRESS] Subject: Letter of appointment Dear [NAME], With reference to your acceptance of our offer dated [OFFER DATE], we are pleased to appoint you on the following terms and conditions: 1. Designation and grade: [DESIGNATION], [GRADE]. Category: [Permanent on probation / Fixed-term employee for the period [START] to [END]]. 2. Date of joining: [DATE]. Place of work: [ADDRESS]. You may be transferred to any office or establishment of the company in India with reasonable notice. 3. Wages: monthly gross salary of Rs. [AMOUNT], consisting of basic Rs. [ ], DA Rs. [ ], HRA Rs. [ ] and special allowance Rs. [ ] (annual CTC Rs. [ ], Annexure A). Wages will be paid by bank transfer before the 7th day of the following month, after statutory deductions. 4. Working hours: [8] hours a day and [48] hours a week, [TIMINGS], with [SUNDAY] as the weekly off. Overtime, where applicable, will be paid at twice the ordinary rate of wages. 5. Leave: [EARNED LEAVE / CASUAL LEAVE / SICK LEAVE ENTITLEMENT] per calendar year, and public holidays as notified, in accordance with the [STATE] Shops and Establishments Act and company policy. 6. Probation: [6] months. On satisfactory completion you will be confirmed in writing. The company may extend probation once by up to [3] months with reasons. 7. Notice period: either party may end employment by giving [30] days' notice in writing (or [15] days during probation), or wages in lieu of notice. This does not apply to dismissal for proven misconduct after due enquiry. 8. Social security: you will be enrolled in the Employees' Provident Fund [and Employees' State Insurance] schemes as applicable, and will be entitled to gratuity and statutory bonus as per law. 9. Conduct: you will follow the company's code of conduct, [STANDING ORDERS], and policies on prevention of sexual harassment, data protection and IT use, as amended from time to time. 10. Confidentiality: during and after employment you will not disclose the company's confidential information, client data or trade secrets. 11. Documents: this appointment is based on the documents and information you have provided. If any is found to be false, the company may terminate your employment. 12. Retirement: [58 / 60] years of age [FOR PERMANENT EMPLOYEES]. Please sign the duplicate copy of this letter as your acceptance. For [COMPANY NAME] [AUTHORISED SIGNATORY] [DESIGNATION] I have read and accept the terms of this appointment. Signature: ______________ Name: [ ] Date: [ ]
How to fill it
- Copy the designation, wages and joining date from the accepted offer letter; the two must agree.
- List every wage component. Keep basic plus DA at no less than half of total pay to avoid surprises under the Labour Codes' wage definition.
- Check that hours, overtime, leave and the weekly off match your State Shops and Establishments Act (or the Factories rules now under the OSH Code).
- For fixed-term staff, write the start and end dates and that gratuity is payable pro rata after one year of service under the contract.
Common mistakes
- No appointment letter at all, especially for shop-floor, delivery and support staff. The OSH Code requirement covers every employee.
- Probation that never ends. Repeated extensions without written reasons are routinely criticised by labour courts.
- "Termination without notice at any time" clauses. They do not override statutory notice and retrenchment protections for workers.
- Bond or penalty clauses that are a penalty rather than a genuine pre-estimate of training costs; courts reduce or refuse them.
- Different numbers from the offer letter or payroll.
Legal points
Section 6(1)(f) of the Occupational Safety, Health and Working Conditions Code, 2020 requires employers to issue an appointment letter to every employee, in the form the rules prescribe. The Industrial Relations Code, 2020 recognises fixed-term employment, with hours, wages, allowances and other benefits no less than those of a permanent worker doing the same or similar work. Establishments above the threshold must also have certified or model standing orders; the letter should refer to them. Leave, hours and notice are additionally governed by the State Shops and Establishments Act.
FundRaksha HR keeps a signed digital copy of each appointment letter against the employee record, alongside the salary slip history and attendance.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.