Appointment Letter

An Appointment Letter is the formal document a company issues once a candidate accepts a job offer, confirming role, reporting structure, salary structure, start date, and key policies. It's distinct from the initial offer letter, which is typically issued earlier in the hiring process and can still be negotiated — the appointment letter reflects the final, accepted terms.

Issuing one is no longer just good practice — it's a legal requirement. The Industrial Relations Code, 2020, in force since 21 November 2025, makes a written appointment letter mandatory for every worker in India, across all sectors and all establishment sizes. Unlike PF (20+ employees) or ESI (10+ employees), there's no headcount or salary threshold — the obligation applies from an organisation's very first hire, and covers daily-wage and informally employed workers, not just salaried staff. The Industrial Relations (Central) Rules, 2026, notified 8 May 2026, prescribe the format and the particulars an appointment letter must contain.

In practice, the appointment letter is the first document that sets an employee's official terms of employment on record — most subsequent HR processes, from payroll setup to probation confirmation to full-and-final settlement calculations, reference it as the source of truth. It's also distinct from an employment contract: the appointment letter is typically a shorter, standardised confirmation of terms, while a full employment contract (more common for senior or specialised roles) goes into greater detail on clauses like non-compete, confidentiality, and IP assignment.