What an offer letter contains
Keep the offer letter short and exact. The CTC figure must match the salary breakup, because candidates compare offers line by line. Avoid promising things the company has not decided, such as a fixed increment after probation, since the letter will be quoted back later.
- Designation, department, reporting manager and work location
- Annual CTC, usually with a salary breakup as an annexure
- Expected date of joining and the acceptance deadline
- Probation and notice periods, in brief
- Conditions: documents, background verification and medical fitness where relevant
- A line stating that the offer can be withdrawn if the conditions are not met
Offer letter vs appointment letter
The offer letter comes first and is conditional. It tells the candidate what the company intends to offer, so they can resign from their current job with confidence. The appointment letter is issued on or after joining and is the fuller document: duties, probation terms, working hours, leave, notice, confidentiality, conduct and termination clauses. Under the OSH Code, every employee must receive an appointment letter, so an offer letter alone is not enough once the person joins. Some companies merge the two into a single 'offer cum appointment letter'.
How companies manage offers
An offer should go out only after internal approval of the salary against the grade and the hiring budget. HR then tracks acceptance, sends the joining checklist and files the accepted offer. When a candidate negotiates, issue a revised letter instead of confirming changes over the phone. In ZeniaHR's Recruitment Hub, offers go out with an online accept or decline page, and pending offers show in recruitment analytics. Offer letter formats are in the HR letters section.
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What is the difference between an offer letter and an appointment letter?
An offer letter is sent before joining and states the role, salary and joining date, subject to conditions such as verification. An appointment letter is issued on or after joining and sets out the full terms of employment, including duties, probation, hours, leave, notice and conduct rules. Under the OSH Code every employee must receive an appointment letter, so the offer letter does not replace it.
Can a company withdraw an offer letter after acceptance?
It happens, usually when the conditions in the letter are not met, such as a failed background check or undisclosed information. Withdrawing an accepted offer for other reasons damages trust and can lead to a dispute, especially if the candidate has already resigned. If withdrawal is unavoidable, tell the candidate early and in writing, explain the reason, and take legal advice where the candidate has suffered a loss.
What should I check before accepting an offer letter?
Check the designation, location, CTC and its breakup, joining date, probation and notice periods, and any conditions attached to the offer. Make sure the fixed and variable parts of pay are clear, and ask how the variable part is decided. Confirm that the joining date allows you to serve your current notice period, and ask for any verbal promises in writing before you accept.