Appointment Letter Generator: Create a Joining Letter Online

What is an appointment letter?

An appointment letter is the document by which an employer confirms that a person has been engaged, and sets out the terms: the role, the date of joining, the place of work, the pay, probation, notice and the conditions that go with the job. In India it is also called a joining letter, and in some companies a letter of employment. Whatever the heading, it is the contract of employment, and it is the document both sides go back to when there is a dispute.

It comes after the offer letter. The offer letter says that the company intends to hire and on what headline terms. The appointment letter is issued on or before joining and carries the full terms, with a block for the employee's signature of acceptance. The Code on Wages, 2019 does not prescribe a form, but the state shops and establishments rules in most states require an employer to issue a written appointment letter to every employee.

Appointment letter, in the HR glossary · Appointment letter template in Word · Offer letter generator

Appointment letter format: the clauses that matter

Most of an appointment letter is boilerplate. The clauses that decide disputes are the ones about pay, probation, notice, transfer and confidentiality. Say the CTC as an annual figure and put the breakup in an annexure so the letter itself does not need reissuing every time a component changes. State the probation period and say clearly that confirmation is in writing, otherwise probation is treated as ended when the period expires. State the notice period once, for both sides.

A transfer clause lets the company move the employee between offices without a fresh contract. A confidentiality clause that survives exit is what makes the relieving letter's reminder enforceable. A clause requiring full-time devotion to the company is what stops moonlighting from being a grey area. None of these need to be long, and this generator keeps them to a sentence each.

• Designation, department, reporting line and place of work
• Date of joining, and for fixed-term roles the end date
• Annual cost to company, with the monthly breakup in Annexure A
• Probation period and how confirmation happens
• Working hours and the applicable shops and establishments rules
• Notice period, the same for both sides, and termination for misconduct
• Confidentiality, exclusive service and adherence to company policies
• Documents to bring on joining, and an acceptance block for the employee's signature

How to state the salary in an appointment letter

State the annual cost to company in figures and words, and put the components in an annexure. The components that appear on every Indian salary structure are basic, house rent allowance, special allowance and the employer's provident fund contribution. Under the Code on Wages, allowances that are excluded from the definition of wages cannot exceed half of total remuneration, so basic plus dearness allowance has to be at least fifty per cent of the package. A letter that shows basic at thirty per cent is out of line with the Code.

Say that salary is paid monthly after statutory deductions. Provident fund, professional tax and income tax will be deducted, and the employee should not read the CTC as take-home. Use the salary calculator to show the candidate what the in-hand figure will be before the letter is signed.

Salary calculator: CTC to in-hand · CTC breakup in India · Salary breakup, in the HR glossary

Probation and confirmation

Probation is a period during which either side can end the employment on shorter notice while the employer assesses fit. Three to six months is the usual range. The appointment letter should state the period, say that the company may extend it, and say that confirmation will be in writing. Issue the confirmation letter when the period ends. If you say nothing, the employee is treated as confirmed on the day probation expires, and the shorter notice no longer applies.

For fixed-term employment, the Code on Wages and the Industrial Relations Code, 2020 require that the employee gets the same wages, hours and benefits as a permanent employee doing the same work, and gratuity on a pro-rata basis after one year. Say the end date in the letter and use the fixed-term option in this generator, which adds that clause.

Probation confirmation letter template · Confirmation letter, in the HR glossary

Appointment letter, offer letter and joining letter

An offer letter is issued after selection and before acceptance. It states the role, the CTC and the proposed joining date, and it lapses if not accepted by a given date. An appointment letter is issued on acceptance or on joining and carries the full terms. A joining letter is simply another name for the appointment letter, though in some companies it is the short letter the employee signs on the first day confirming that they have joined.

Issue the appointment letter on or before the first day and have it signed then. An employee who has worked for months without a signed appointment letter is still employed on the terms that were in practice, but the employer has lost the benefit of every clause it would have written down.