Quick answer: An offer letter is a conditional, pre-joining proposal you send a chosen candidate in India. It sets out the role, start date, cost to company (CTC) and the conditions attached, such as background checks. Once the person joins, the OSH Code, 2020 requires a separate appointment letter.
- Under the Indian Contract Act, 1872, you can revoke a proposal until the candidate’s acceptance is complete.
- Section 6(1)(f) of the OSH Code requires a letter of appointment for every employee from 21 November 2025.
- Most Indian offers quote CTC as an annual figure in lakh, not a monthly salary.
- A signed acceptance does not oblige the candidate to join.
How does an offer letter differ from an appointment letter?
One is a promise to hire. The other is the statutory record of the hire.
| Offer letter | Appointment letter | |
|---|---|---|
| When | Before joining | On appointment |
| Legal basis | Contract Act proposal | OSH Code s.6(1)(f) |
| Mandatory | No | Yes, for every employee |
| Conditions | Usually conditional | Final terms |
| Typical content | Role, CTC, start date, conditions | Wages, category, duties, social security |
So the offer letter vs appointment letter question has a clear 2026 answer. You need both if you use an offer at all, and only the appointment letter is required by law.
What should an Indian offer letter include?
Six items, kept short. Long legal text belongs in the appointment letter or the employment contract.
- Job title, reporting line and work location
- Annual CTC, with fixed and variable parts split
- Any joining bonus and the clawback period
- Proposed start date and offer expiry date
- Conditions: background verification, documents, a relieving letter from the last employer
- A line saying the appointment letter will follow on joining
Expect counter-offers.
Indian candidates commonly serve notice periods of one to three months, and many stay on the market during that window, collecting rival offers and a retention bid from their current employer. A clear expiry date, regular contact and a fast start date are your best defence against offer dropout.
Suppose you offer ₹24 lakh CTC to a Pune data engineer on a 90-day notice. Ninety days is a long time. Plan a call every fortnight until day one. Our guide to hiring employees in India covers the wider process.
Can you withdraw an offer letter in India?
Yes, before acceptance is complete. Section 5 of the Indian Contract Act, 1872 lets a proposer revoke an offer up to that point. After acceptance, withdrawal can expose you to a damages claim, which is why a clear condition list protects you.
How does Remunance issue offer letters to your India hires?
Remunance issues the offer on its own letterhead because we are the legal employer, with the CTC built from a costed breakdown you approve. Our bundled talent acquisition and background verification sit behind it, so conditions get checked before day one. Then the OSH-format appointment letter goes out on joining. Fast, too. If you want an offer that lands with your first-choice candidate, send us your India offer to review.
What else do people ask about offer letters?
Is an offer letter legally binding in India?
Partly. A signed offer can bind you to its terms once accepted, but Indian courts rarely force a candidate to join, so in practice it mainly binds the employer.
What is the difference between an offer letter and a joining letter?
A joining letter is another name for the appointment letter. It confirms the start of employment, while the offer letter only proposes it.
Do I need an offer letter if I issue an appointment letter?
No. The appointment letter is the statutory document. An offer letter is optional, though most Indian candidates expect one before resigning from their current job.