IRC 2020 Mandate in Force from November 2025

Appointment Letters for Indian Companies, Done Right

The Industrial Relations Code 2020 requires every employer to issue a formal appointment letter. Offrd generates a compliant PDF on your company letterhead in minutes, and files it to the employee record automatically.

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Acme Solutions Pvt. Ltd.
Date: 16 May 2026
To,
Priya Sharma
Software Engineer, Engineering
Subject: Letter of Appointment
Dear Priya Sharma,
We are pleased to appoint you as Software Engineer in the Engineering department at Acme Solutions Pvt. Ltd. Your terms of employment are set out below.
Date of Joining1 June 2026
Employment TypeFull-Time, Permanent
Place of PostingBengaluru
Annual CTC₹X,XX,XXX
Probation Period3 months
Notice PeriodXX days
Your employment is governed by the company's HR policies which will be shared during onboarding. This appointment is subject to satisfactory verification...

Generate this letter with your company details on Offrd

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Why appointment letters are no longer optional

The Industrial Relations Code 2020 came into force on 21 November 2025. It requires employers to issue a formal appointment letter to every worker they engage. The letter must state the terms clearly: designation, remuneration, working hours, leave entitlement, probation conditions, and notice period.

Before this, many smaller employers sent an email and considered it sufficient. For establishments covered under the Code, that is no longer legally acceptable.

Non-issuance of appointment letters is an inspectable item under the Code. A labour inspector can flag it during a routine audit. The Ministry of Labour and Employment has published the consolidated Labour Codes for reference.

Generate a Compliant Letter

What the appointment letter must cover

Name of the employer and the establishment
Name and designation of the worker
Nature of employment: permanent, fixed-term, or probationary
Wages and how remuneration is structured
Working hours and leave entitlement
Place of work
Notice period for termination or resignation
Probation period and confirmation conditions, where applicable

What Offrd does differently

Most companies still draft these manually or copy the last hire's letter and change the name. That is where mistakes happen.

Your letterhead, not a blank page

Offrd generates the letter on your company letterhead automatically. No formatting, no Word file, no printing on blank paper.

Labour Code 2025 template

The template covers all terms the IRC 2020 requires. Fixed-term clauses, probation conditions, and notice period language are already in the right place.

Filed to the employee record

Every letter is stored against the employee. When you need it for an audit or a dispute, it is there. Not in someone's email drafts.

Connected to the full lifecycle

The appointment letter links directly to onboarding, payslip, probation, and eventually the separation letter. One record, start to exit.

Fixed-term gratuity built in

Under the IRC 2020, fixed-term employees earn gratuity after one year, not five. Offrd reflects this in both the letter template and gratuity calculations.

Setup in under 2 minutes

Add your company, add the employee, generate. No implementation project, no consultant, no week-long onboarding.

How it works

1

Sign up free

Under 2 minutes. 50 credits on the house, no card required.

2

Add the employee

Name, designation, department, date of joining. Or import a CSV.

3

Generate

Offrd fills the template with the correct terms and puts it on your letterhead. The PDF is ready in seconds.

4

Send and file

Share the PDF. The letter is stored in the employee record for future reference.

Common questions

Is issuing an appointment letter mandatory in India?
Yes. The Industrial Relations Code 2020, which came into force on 21 November 2025, requires employers to issue appointment letters to all workers they engage. Establishments covered under the Code cannot rely on verbal offers or informal emails as a substitute.
What is the difference between an offer letter and an appointment letter?
An offer letter is issued before the candidate accepts. It outlines the intent to hire and the broad terms. An appointment letter is issued on or before the date of joining and is the formal, binding employment document. The IRC 2020 mandates the appointment letter specifically. Offrd generates both, linked to the same employee record.
How much does it cost to generate an appointment letter on Offrd?
You get 50 free credits on signup, which covers 50 documents. After that, it is either ₹99 per document on a pay-as-you-go basis, or ₹50 per active employee per month on the subscription plan. No setup fees.
Can I use the same template for all employment types?
Offrd handles the variations for you. A fixed-term letter includes the contract end date. A probationary appointment includes the confirmation clause. You do not manage separate files for each type.
What happens if I do not issue an appointment letter?
Under the Industrial Relations Code 2020, not issuing appointment letters is an inspectable violation. A labour inspector can flag this during a workplace audit. Beyond the compliance exposure, it creates ambiguity in any employment dispute, which is typically expensive to resolve without a signed document.
Does Offrd support fixed-term employment under the new Labour Codes?
Yes. Under the Industrial Relations Code 2020, fixed-term employees are entitled to gratuity after one year of service, not five. Offrd's appointment letter template includes the correct fixed-term clauses, and the gratuity calculation in the platform reflects this rule.
What is the correct appointment letter format in India?
On company letterhead: a reference number and date, the employee's name and address, a subject line reading Appointment Letter, paragraphs covering designation, department, work location, date of joining, reporting manager, annual CTC with the salary structure in an annexure, probation period, notice period, and a policies clause, ending with the authorised signatory and an acceptance line the employee signs and returns. The full format is on this page, free to copy.
Can I use this appointment letter format in Word or as a PDF?
Both, in sequence. Draft in Word from the format on this page, keep a master file with the placeholders intact, and structure the salary annexure with Basic at no less than half of total pay per the Code on Wages 2019. Then issue the finished letter as a PDF and file the signed acceptance copy.

Appointment letter format, free to copy

If you only need the wording, the full appointment letter format is below, selectable text, free to copy. Replace the square bracket fields and set it on your letterhead. The generator above fills all of it for you, but the format is yours either way.

[Company Name]
[Registered Address, City, PIN]
Ref No: [Reference Number] Date: [Date of Issue]

To,
[Employee Name]
[Address]

Subject: Appointment Letter

Dear [Employee Name],

With reference to your application and the subsequent discussions, we are pleased to appoint you as [Designation] in the [Department] department at our [Work Location] office, effective [Date of Joining]. You will report to [Reporting Manager Name], [Reporting Manager Designation].

Your annual cost to company will be ₹ [CTC Amount], structured as detailed in Annexure A to this letter.

You will be on probation for a period of [Probation Period] months from your date of joining. Your confirmation will be communicated to you in writing on successful completion of probation.

Either party may end this employment by giving [Notice Period] days written notice, or as set out in company policy. Your employment is governed by the policies of the company as amended from time to time.

Please sign and return the duplicate copy of this letter as a token of your acceptance of the above terms.

For [Company Name]


[Authorised Signatory Name]
[Signatory Designation]


I accept the terms of this appointment.

[Employee Name]    [Signature]    [Date]

Sample appointment letter with dummy data

Verdant Foods Pvt Ltd
11 Industrial Layout, Whitefield, Bengaluru, 560066
Ref No: VF/HR/2026/0031 Date: 18 August 2026

To,
Rohit M
Bengaluru

Subject: Appointment Letter

Dear Rohit,

With reference to your application and the subsequent discussions, we are pleased to appoint you as Stores Supervisor in the Operations department at our Bengaluru office, effective 1 September 2026. You will report to Kavitha N, Operations Manager.

Your annual cost to company will be ₹ 4,20,000, structured as detailed in Annexure A to this letter.

You will be on probation for a period of 6 months from your date of joining. Your confirmation will be communicated to you in writing on successful completion of probation.

Either party may end this employment by giving 30 days written notice, or as set out in company policy. Your employment is governed by the policies of the company as amended from time to time.

Please sign and return the duplicate copy of this letter as a token of your acceptance of the above terms.

For Verdant Foods Pvt Ltd


Suman R
Head of Human Resources

The company and people above are fictional and the figures are illustrative.

Appointment letter format in Word

Word is the working copy. Paste the format into a blank document, add your letterhead, and build Annexure A as a small salary table. Under the Code on Wages 2019, the 50% basic wage rule applies, so keep the Basic line at no less than half of total pay when you structure the annexure. Save a master with the placeholders intact and duplicate it per hire.

Appointment letter format in PDF

PDF is the issued copy. Export the finished letter, send it for signature, and file the accepted copy the employee signs and returns. The fixed layout keeps the terms exactly as issued on any device, which matters for a document both sides rely on later. The editable Word master stays with HR.

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