Legal Drive

Employment Offer Letter

An employment offer letter is the written offer a company gives a selected candidate before joining.

Format:

Free with an account: Word or PDF, no watermark, saved to your dashboard. Each page carries a small reference footer so anyone can verify it.

You pay Legal Drive only. We pay the advocate. Nobody should ask you to pay them directly.

Legal Drive sealAttest & Sign embeds a real, independently checkable record right into the document.

OFFER OF EMPLOYMENT Dear [candidate_name], We are pleased to offer you employment with [company_name], [company_address], for the position of [designation]. 1. DESIGNATION AND REPORTING You will be designated as [designation] and will report to [reporting_manager]. 2. COMPENSATION Your annual Cost to Company (CTC) will be Rs. [annual_ctc], subject to applicable statutory deductions. A detailed compensation breakup will be shared separately. 3. DATE OF JOINING Your employment is proposed to commence on [joining_date]. This offer is contingent on your joining by this date, unless otherwise agreed in writing. 4. PROBATION Your employment will be subject to a probation period as per company policy, at the end of which your performance will be reviewed for confirmation. 5. ACCEPTANCE Please sign and return a copy of this letter to indicate your acceptance of this offer on the terms stated above. We look forward to welcoming you to [company_name]. For [company_name] Accepted: [candidate_name]

Employment Offer Letter: what it is

An employment offer letter is the written offer a company gives a selected candidate before joining. This version records the designation, reporting manager, annual CTC, proposed joining date and a probation period as per company policy, and asks the candidate to sign and return a copy to accept, with a detailed salary breakup to follow separately.

When you need this document

  • A company has selected a candidate after interviews and wants to confirm the offer in writing.
  • A startup is hiring its first few employees and needs a simple, clear offer before a full appointment letter.
  • A candidate needs a written offer to resign from the current job or to show for a loan or rental agreement.
  • The employer wants the candidate's written acceptance and committed joining date on record.
  • A recruiter needs a standard format to issue offers quickly across roles.

What it covers

  • The company's name and address and the position offered.
  • The designation and the person or department the candidate will report to.
  • The annual Cost to Company in rupees, subject to statutory deductions, with a breakup to follow.
  • The proposed joining date and a condition that the offer depends on joining by that date unless agreed otherwise.
  • A probation period as per company policy, followed by a performance review for confirmation.
  • An acceptance line for the candidate to sign and return.

How to fill, sign and use it

  1. Confirm the final CTC, designation, reporting line and joining date internally before drafting.
  2. Fill in the form on this page and check the preview for correct spelling of the candidate's name and the CTC figure.
  3. Have an authorised signatory sign it on behalf of the company, on letterhead if you use one.
  4. Send it by email as a PDF or in hard copy, and give the candidate a reasonable time to respond.
  5. Collect the signed acceptance and keep it in the candidate's file.
  6. Issue the detailed salary breakup and, after joining, a full appointment letter setting out the complete terms.

Documents to attach or keep with it

  • Detailed CTC or salary breakup, if not sent separately.
  • List of documents the candidate must bring on joining, such as identity proof, educational certificates and relieving letter.
  • Copy of the company's probation or leave policy, if referred to.

The law behind it

No single statute prescribes an offer letter. It works as an offer under the Indian Contract Act, 1872, and becomes a binding promise once the candidate accepts it as written. The employer can usually withdraw an offer before acceptance is communicated. Once employment starts, applicable labour law applies, including the labour codes in force since 21 November 2025 and the state Shops and Establishments law. Statutory deductions such as income tax at source and social security contributions apply as the law requires.

Common mistakes to avoid

  • Stating a CTC that differs from the breakup sent later, which causes disputes about actual take-home pay.
  • Leaving the joining date open-ended so neither side knows when the offer lapses.
  • Treating the offer letter as the full contract, without later issuing an appointment letter with notice, confidentiality and other terms.
  • Not getting the candidate's signed acceptance back before the joining date.

Employment Offer Letter: frequently asked questions

Is an offer letter legally binding in India?

Once the candidate accepts it, an offer letter can form a contract under the Indian Contract Act, 1872. In practice, its main use is to record the agreed terms before joining. Before acceptance, an employer can usually withdraw the offer. Courts look at the exact wording and conduct of both sides if a dispute arises.

What is the difference between an offer letter and an appointment letter?

An offer letter is issued before joining and covers the basic terms: role, CTC and joining date. An appointment letter is usually issued on or after joining and sets out the full terms of employment, such as notice period, duties, confidentiality, leave and termination. Many companies issue both.

Does an offer letter need stamp paper or notarisation?

No. An offer letter is ordinarily issued on company letterhead, signed by an authorised person, and sent by email or hand. It is not notarised or registered. Some employers ask for a more detailed employment agreement later, and stamp duty on such agreements depends on the state.

Can a company revoke an offer after I accept it?

It can happen, and the remedy depends on the facts. If you have accepted in writing and resigned from your earlier job relying on the offer, you may have a claim for losses. Recovery is not automatic. Keep the offer, your acceptance and related emails as proof.

What does CTC include?

Cost to Company is the total annual cost the employer incurs on you, which may include basic pay, allowances, the employer's share of provident fund, gratuity provision, insurance and variable pay. Take-home salary is lower after deductions. This letter says a detailed breakup will be shared separately, so ask for it before accepting.

Last updated 3 October 2026.

General information on Indian law, not legal advice for your situation. Stamp duty, registration and fees differ by state, so check with the local office or an advocate before you rely on it.

Related guides

The law behind it, explained in plain English and checked against official sources.

If this turns into a dispute, you can find an employment lawyer or ask a verified advocate a question online.

People drafting employment offer letter often need these too.