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Offer letter vs appointment letter vs joining letter: what each one is, when to send it

Indian hiring uses three different letters, and most teams treat them as the same document with three names. They are not. Below is the plain version of what each one does, when it goes out, and which one the new Labour Codes 2025 made compulsory.

Quick answer: The offer letter is sent first, before acceptance, to confirm the job offer. The appointment letter is the formal contract issued after acceptance, and it is mandatory under the Indian Labour Codes effective 21 November 2025. The joining letter is written by the employee on day one to confirm they have reported for duty.
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The three letters, one at a time

Same hire, three documents, each with a specific job. Confusing them is the most common HR mistake we see in companies under 100 employees.

1

Offer letter

Sent before acceptance Signed by employer Conditional

The offer letter is the first formal document. It goes out after the interviews are done and the salary is agreed. The purpose is simple, capture the offer in writing so the candidate has something concrete to evaluate. Typical contents are role, designation, joining date, CTC, salary breakup, location, reporting manager, probation, and notice period.

An offer letter is conditional. It is usually contingent on background checks, document verification, and the candidate joining on the agreed date. If the candidate accepts, they sign and return it. If they reject or counter, the conversation moves to the next round.

It is not the final contract. It sets expectations, but the binding employment terms live in the appointment letter that follows.

How Offrd handles this: drag the role, candidate, salary, and joining date into a template, hit generate, the letter is ready in under two minutes with Indian CTC structure built in.
2

Appointment letter

Issued after acceptance Mandatory in India Full contract

The appointment letter is the real employment contract. It is issued after the candidate accepts the offer, and it is usually handed over on or just before the joining date. This is the document that binds both sides to the terms of employment.

Where the offer letter is short and forward looking, the appointment letter is detailed. It captures designation, reporting structure, place of work, full salary breakup with EPF and ESI components, probation, notice period, working hours, leave, holidays, confidentiality, IP assignment, non solicitation, termination grounds, and grievance redressal.

Under the Indian Labour Codes that came into force on 21 November 2025, a written appointment letter is no longer optional. Every employer must issue one to every employee. Skipping it is a compliance gap, not a paperwork preference.

How Offrd handles this: appointment letters auto fill from the offer record, with EPF at 12 and 12, ESI at 3.25 and 0.75, PT slabs by state, and basic at 50 percent of total wages per the Code on Wages 2019.
3

Joining letter

Written by employee Day one Triggers service start

The joining letter is the only one of the three that comes from the employee, not the company. On the first day of work, the new hire writes a short note confirming they have reported on the agreed date, accepted the position on the stated terms, and are ready to begin.

Most companies hand over a pre filled template the employee signs, which keeps the wording clean. HR files it because it formally marks the start of service. That date matters for leave accrual, gratuity eligibility, probation completion, and the first payroll run.

If the joining letter never lands in the file, the new hire's start date can be disputed later. Some employers also use it as the trigger to issue ID cards, set up email, and activate access.

How Offrd handles this: the joining record is created automatically when onboarding completes, signed digitally, and stamped with the verified joining date that flows into payroll and leave.

Side by side comparison

If you only read one section of this page, this is it. Five questions, three answers per row.

Question
Offer letter
Appointment letter
Joining letter
When is it issued?
Before acceptance, after the offer is verbally agreed.
After acceptance, on or just before the joining date.
On the first day of work, by the employee.
Who writes it?
Employer or HR.
Employer or HR, signed by an authorised signatory.
Employee, often on a pre filled template.
Legally required in India?
Not required by law, but standard practice.
Yes. Mandatory under the Labour Codes effective 21 November 2025.
Not required by law. Strongly recommended for record keeping.
What does it contain?
Role, joining date, CTC, basic terms, probation, conditional clauses.
Full salary breakup, statutory components, working hours, leave, IP, termination, the full contract.
Confirmation of reporting, acceptance of terms, the actual start date.
What does it trigger?
Candidate decision, background check kick off.
Binding employment, statutory clock starts.
Payroll, leave accrual, gratuity counter, access activation.

A common shortcut is to combine the offer letter and appointment letter into one document. That works for small teams, but only if the combined letter carries every clause an appointment letter is supposed to carry. A short offer letter alone is not enough under the 2025 rules.

The Labour Codes 2025 rule, plainly

This is the part that changed for Indian employers, and most have not caught up yet.

What the rule says

The four Labour Codes (Wages, Industrial Relations, Social Security, OSH) came into force on 21 November 2025. One of the practical changes for employers is the requirement to issue a written appointment letter to every employee, capturing the basic terms of employment.

That letter must include at least these fields:

  • Designation and place of work
  • Date of joining
  • Wages, with the breakup of basic, allowances, and statutory contributions
  • Hours of work and weekly off
  • Period of probation, if any
  • Notice period for termination
  • Leave entitlement

The Code on Wages also requires basic wages to be at least 50 percent of total wages. EPF, ESI, gratuity, and bonus calculations all draw from that basic figure, so getting the breakup right at the appointment letter stage saves headaches every payroll cycle after that.

Companies still running on a one page offer letter, with no follow up appointment letter, are not compliant. Labour inspectors and audit teams are starting to ask for the appointment letter specifically.

Mistakes Indian SMEs make with these three letters

From conversations with HR managers at small businesses. Catch these early, save the audit conversation later.

Treating the offer letter as the contract

The offer is conditional, short, and forward looking. The appointment letter is the contract. Stopping at the offer letter leaves the company exposed in disputes.

Skipping the appointment letter for senior hires

Founders sometimes hire experienced people on a handshake or a one page note. After 21 November 2025, every employee needs a written appointment letter, including senior leadership.

Missing the joining letter in the file

Without a signed joining record, the start date is whatever HR remembers. That can hurt the employee in gratuity disputes and the company in compliance audits.

Basic wages set below 50 percent

The Code on Wages 2019 requires basic to be at least 50 percent of total wages. Older templates that set basic at 30 or 40 percent need updating.

Different salary numbers across the three letters

When the offer, appointment, and payslip are typed up separately, the CTC drifts. Generate all three from one record to keep them aligned.

Verbal terms not captured anywhere

Joining bonus, relocation support, stock options, notice waiver. If they are not in the appointment letter, they do not exist in a dispute.

One platform for all three letters

Offrd produces the offer letter, the appointment letter, and the joining record from one employee record. Salary, statutory components, probation, and notice stay consistent across the three.

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Frequently asked questions

What is the difference between an offer letter, an appointment letter, and a joining letter?
An offer letter is the first document, sent before the candidate accepts. It states the role, salary, joining date, and key terms, and asks the candidate to confirm. An appointment letter is issued after acceptance, usually on or just before the joining date. It is the formal employment contract and is mandatory under the Indian Labour Codes effective 21 November 2025. A joining letter is written by the employee on day one to confirm they have reported for duty, and it triggers payroll, ID creation, and benefits enrolment.
Is an appointment letter legally mandatory in India?
Yes. The Code on Wages 2019 and the wider Labour Codes that came into force on 21 November 2025 require every employer to issue a written appointment letter to each employee. The letter must capture the basic terms of employment, including wages, designation, and working hours. Companies that issue only an offer letter and skip the appointment letter are not compliant.
Is an offer letter a contract?
An offer letter becomes a contract once the candidate signs and returns it, but it is usually treated as a pre employment document. The full contractual relationship is established by the appointment letter, which sets out detailed terms, statutory clauses, and policies the employee must follow. Most Indian employers issue both, with the appointment letter superseding the offer letter on the joining date.
Who writes the joining letter, the company or the employee?
The employee writes the joining letter. It is a short note from the new hire stating that they have reported on the agreed date and accepted the position. Some companies use a pre filled template the employee signs. HR keeps it on file because it formally marks the start of service for leave, gratuity, and payroll purposes.
Can I send only an offer letter and skip the appointment letter?
Not under the new Indian Labour Codes. From 21 November 2025, written appointment letters are mandatory for every employee. The offer letter alone does not satisfy this rule. If a labour inspector or auditor asks for proof of employment terms, the appointment letter is the document they expect to see.
When is each letter issued during hiring?
The offer letter is sent first, after the candidate clears interviews and the salary is agreed. The appointment letter is issued after the candidate accepts, usually on or just before the joining date. The joining letter is signed by the employee on the day they start, after they have reported to office or logged in for remote work. All three are kept in the personnel file.
What goes inside an Indian appointment letter?
An Indian appointment letter typically includes the designation, reporting structure, place of work, joining date, full salary breakup with CTC, basic, HRA, allowances, and statutory components like EPF and ESI. It also covers probation, notice period, working hours, leave entitlement, confidentiality, IP assignment, and termination clauses. Under the Labour Codes 2025, basic wages must be at least 50 percent of total wages.
Can Offrd generate all three letters?
Yes. Offrd generates offer letters, appointment letters, and the joining record from a single employee record. Salary, statutory components, probation, and notice period stay consistent across all three. Setup is under 2 minutes, the first 50 credits are free on signup, and each letter after that is 99 rupees on pay per use or part of the 50 rupees per active employee per month subscription.
Is the offer letter binding if I withdraw before joining?
A signed offer letter creates a limited contractual obligation. If the employer withdraws after acceptance without cause, the candidate may claim compensation for losses, such as a resigned previous job. If the candidate withdraws, the employer can recover any joining bonus paid or claim damages if the offer letter states so. In practice most disputes settle without court action, but the document does carry weight.
How much does Offrd cost?
Offrd starts with 50 free credits when you register. After that, you can pay 99 rupees per document on a pay as you use plan, or 50 rupees per active employee per month on a subscription. Trusted by 4,000 plus companies across India.

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Last updated: 16 May 2026