How to issue an appointment letter

What the appointment letter should cover

The appointment letter is the reference document for every later question about pay, notice, leave or transfer, so it should be complete and specific. The appointment letter rule applies to every employee, including fixed-term staff and those on the shop floor. A clear, complete letter also saves HR from answering the same questions from each joiner one by one.

• Employee name, address and employee code
• Designation, grade, department and reporting manager
• Date of joining and place of posting, with any transfer clause
• Wages: monthly gross and component breakup
• Working hours, shifts and weekly off
• Probation period and how confirmation works
• Notice period during probation and after confirmation
• Leave entitlement or a reference to the leave policy
• Code of conduct, confidentiality and the policies that apply
• Signature of an authorized signatory and a line for the employee's acceptance

How it relates to the offer letter

The offer letter is sent before joining and is conditional: it tells the candidate what the company intends to offer. The appointment letter is issued at joining and confirms the full terms of employment. The appointment letter must match the accepted offer on every point: designation, pay, joining date, probation and notice. If something has changed, such as the location, tell the person before joining and get their agreement, rather than letting them discover it in the letter.

Worked example: letters for a new batch

A Coimbatore textile unit has ten joiners on 1 July. On 26 June, HR prepares the letters from the standard template and checks each one against the accepted offer. The check finds one mismatch: an offer said a 30-day notice period after confirmation, while the template said 60. HR corrects the letter to 30 days, as offered. The plant HR head signs all ten on 28 June. On 1 July each joiner receives two copies, signs one, and HR scans the signed copies into their files the same afternoon.

Keeping terms accurate after joining

Do not rewrite the appointment letter when something changes. Issue a separate letter for each change, such as confirmation, increment, promotion, transfer or change of designation, and keep them in order in the employee's file. Check the wage structure at the start: under the Code on Wages, basic pay plus dearness allowance must be at least half of total remuneration, so a letter with a very low basic sets up problems for PF and gratuity later. See the 50 percent wage rule.

• Issuing letters only to office staff and skipping workers
• Terms that differ from the accepted offer
• No signed acknowledgement from the employee
• Salary structures with a very low basic
• Rewriting the original letter instead of issuing change letters

Step by step

1. Prepare a template for each employment type. Keep separate templates for permanent, fixed-term and trainee employees, reviewed by someone who knows your standing orders and state rules. Update them whenever a policy changes.
2. Fill it in from the accepted offer. Copy designation, grade, pay, joining date, probation and notice from the accepted offer, then check every field against it.
3. Check the wage structure. Confirm that basic pay plus dearness allowance is at least half of total remuneration, and that the components add up to the monthly gross.
4. Get it signed by an authorized signatory. Use the person named in your delegation of authority, such as the HR head or plant head, and sign all copies before joining day.
5. Issue it on or before day one. Hand over the letter at joining or earlier. Explain the key terms in plain words, especially probation, notice and working hours.
6. Collect the signed acknowledgement. Ask the employee to sign the office copy to confirm they received and accepted the terms. Give them their own copy to keep.
7. File the signed copy. In ZeniaHR, save the signed letter in the employee's documents, where files are stored securely and download through time-limited links.
8. Issue change letters later. When terms change, issue a separate dated letter for confirmation, increment, promotion or transfer, and file it with the original.

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