Is an offer letter legally binding?

Once signed by the candidate it is evidence of the agreed headline terms, but it is usually conditional. Most of the enforceable employment terms sit in the appointment letter and your policies. Have your adviser review the wording if you rely on it.

Can an offer be withdrawn after acceptance?

Organisations do withdraw offers when a stated condition, such as document verification, is not met. Withdrawing for reasons not stated in the letter is harder to defend, which is why the conditions should be listed clearly.

Should the offer letter state take-home pay?

State the CTC and attach a break-up. Take-home depends on tax regime, deductions and declarations, so present any in-hand figure as an estimate only.

Letter template

Offer letter format for hiring in India

An offer letter tells a selected candidate that you want to hire them and on what headline terms. This offer letter format covers role, pay, joining date and the conditions the offer depends on.

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When it is issued and by whom

The offer letter goes out after the final interview and any reference or background checks you run before an offer. HR usually drafts it and an authorised signatory, often the HR head or the hiring manager's function head, signs it.

It is a conditional document. The candidate signs and returns a copy to accept, and the detailed terms follow in the appointment letter on or soon after the joining date.

What it must contain

Designation, department and reporting manager.
Work location and whether the role is on-site, hybrid or remote.
Annual cost to company, with a salary annexure that splits fixed pay, variable pay and employer contributions.
Proposed joining date and the date by which the offer must be accepted.
Conditions: document verification, background check, medical fitness if relevant, and relieving from the previous employer.
A line that the full terms will be set out in the appointment letter.

Offer letter or appointment letter

The offer letter is an invitation with headline terms. The appointment letter is the employment contract: probation, notice period, leave, confidentiality, working hours and grounds for separation. Some organisations combine the two, but keeping them separate lets you withdraw an offer cleanly if a condition is not met before the person joins.

Watch for itThe most common dispute is a CTC figure the candidate reads as take-home pay. Attach a salary break-up and state that statutory deductions apply.

Template

The template, ready to adapt

Replace everything in [square brackets]. Have your own legal or HR adviser review the final wording for your organisation.

Template

[COMPANY NAME]
[Registered office address] | [CIN, if applicable] | [Phone] | [Email]

Ref: [HR/OFFER/YYYY/NNN]
Date: [DD Month YYYY]

[Candidate full name]
[Address]
[Email]

Subject: Offer of employment for the position of [Designation]

Dear [Candidate first name],

Further to your interviews with us, we are pleased to offer you the position of [Designation] in our [Department] team, reporting to [Manager name, Designation]. Your place of work will be [City / office address] [and the role will follow our [on-site / hybrid / remote] working arrangement].

1. Compensation: Your annual cost to company will be Rs. [Amount] ([amount in words]). The break-up of fixed pay, variable pay and employer contributions is set out in Annexure A. Applicable statutory deductions and income tax will be made from your salary.

2. Joining date: We expect you to join on or before [DD Month YYYY]. Please let us know immediately if this date is not possible.

3. Conditions of this offer: This offer is subject to:
   a) satisfactory verification of your educational, identity and employment documents;
   b) a satisfactory background check [if applicable];
   c) your being relieved by your current employer, with a relieving letter, before the joining date;
   d) [any other condition, for example medical fitness].

4. Appointment letter: Your detailed terms of employment, including probation, notice period, leave and conduct obligations, will be set out in your appointment letter, which will be issued [on your date of joining / within [N] days of joining].

5. Documents to bring on joining: [List, for example: proof of identity, PAN, Aadhaar, educational certificates, last three salary slips, relieving letter from your previous employer, bank account details, passport-size photographs].

Please sign and return a copy of this letter by [DD Month YYYY] to confirm your acceptance. If we do not receive your acceptance by that date, this offer will lapse.

We look forward to welcoming you to [Company name].

Yours sincerely,
For [COMPANY NAME]

[Authorised Signatory]
[Designation]

Enclosure: Annexure A, Salary break-up

ACCEPTANCE
I accept the offer of employment on the terms set out above and will join on [DD Month YYYY].

Signature: ____________________
Name: [Candidate full name]
Date: [DD Month YYYY]

FAQs

Questions about this page

Once signed by the candidate it is evidence of the agreed headline terms, but it is usually conditional. Most of the enforceable employment terms sit in the appointment letter and your policies. Have your adviser review the wording if you rely on it.
Organisations do withdraw offers when a stated condition, such as document verification, is not met. Withdrawing for reasons not stated in the letter is harder to defend, which is why the conditions should be listed clearly.
State the CTC and attach a break-up. Take-home depends on tax regime, deductions and declarations, so present any in-hand figure as an estimate only.

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When it is issued and by whom

It is a conditional document. The candidate signs and returns a copy to accept, and the detailed terms follow in the appointment letter on or soon after the joining date.

What it must contain

Designation, department and reporting manager.

Work location and whether the role is on-site, hybrid or remote.

Annual cost to company, with a salary annexure that splits fixed pay, variable pay and employer contributions.

Proposed joining date and the date by which the offer must be accepted.

Conditions: document verification, background check, medical fitness if relevant, and relieving from the previous employer.

A line that the full terms will be set out in the appointment letter.

Offer letter or appointment letter

Watch for itThe most common dispute is a CTC figure the candidate reads as take-home pay. Attach a salary break-up and state that statutory deductions apply.

[COMPANY NAME] [Registered office address] | [CIN, if applicable] | [Phone] | [Email] Ref: [HR/OFFER/YYYY/NNN] Date: [DD Month YYYY] [Candidate full name] [Address] [Email] Subject: Offer of employment for the position of [Designation] Dear [Candidate first name], Further to your interviews with us, we are pleased to offer you the position of [Designation] in our [Department] team, reporting to [Manager name, Designation]. Your place of work will be [City / office address] [and the role will follow our [on-site / hybrid / remote] working arrangement]. 1. Compensation: Your annual cost to company will be Rs. [Amount] ([amount in words]). The break-up of fixed pay, variable pay and employer contributions is set out in Annexure A. Applicable statutory deductions and income tax will be made from your salary. 2. Joining date: We expect you to join on or before [DD Month YYYY]. Please let us know immediately if this date is not possible. 3. Conditions of this offer: This offer is subject to: a) satisfactory verification of your educational, identity and employment documents; b) a satisfactory background check [if applicable]; c) your being relieved by your current employer, with a relieving letter, before the joining date; d) [any other condition, for example medical fitness]. 4. Appointment letter: Your detailed terms of employment, including probation, notice period, leave and conduct obligations, will be set out in your appointment letter, which will be issued [on your date of joining / within [N] days of joining]. 5. Documents to bring on joining: [List, for example: proof of identity, PAN, Aadhaar, educational certificates, last three salary slips, relieving letter from your previous employer, bank account details, passport-size photographs]. Please sign and return a copy of this letter by [DD Month YYYY] to confirm your acceptance. If we do not receive your acceptance by that date, this offer will lapse. We look forward to welcoming you to [Company name]. Yours sincerely, For [COMPANY NAME] [Authorised Signatory] [Designation] Enclosure: Annexure A, Salary break-up ACCEPTANCE I accept the offer of employment on the terms set out above and will join on [DD Month YYYY]. Signature: ____________________ Name: [Candidate full name] Date: [DD Month YYYY]