Templates / Offer Letter

Offer Letter / Appointment Letter

Offer letter and appointment letter template for India. Free PDF with salary, probation, and notice period clauses. eSign for ₹15.

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What is a Offer Letter?

An offer letter is a formal document from an employer to a selected candidate confirming the terms of employment. It typically precedes the appointment letter, which is issued on or after the date of joining. In India, while there is no single central law mandating the format of offer/appointment letters, they function as employment contracts governed by the Indian Contract Act, 1872. State-specific Shops & Establishments Acts may mandate certain terms for employees in the organised sector.

Essential Clauses in a Offer Letter

Employee name and designation/role
Date of joining and reporting location
Compensation details (CTC, basic salary, allowances, variable pay)
Probation period and confirmation conditions
Working hours and leave policy reference
Notice period for resignation/termination
Confidentiality and non-disclosure obligations
Code of conduct and company policies reference
Conditions precedent (background verification, medical fitness)
Signature of authorised company representative

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Stamp Duty & Registration

Offer letters and appointment letters do not require stamp duty in any Indian state. They are treated as employment contracts under the Indian Contract Act and are not listed in the stamp duty schedules.

Can a Offer Letter Be Signed with Aadhaar eSign?

Yes. Offer letters and appointment letters can be signed with Aadhaar eSign under Section 3A of the IT Act, 2000. This is especially useful for companies issuing multiple offer letters — each can be eSigned for ₹15, significantly faster than printing, signing, scanning, and mailing physical copies.

Learn more in our Complete Guide to Aadhaar eSign →

Common Mistakes to Avoid

✗Not distinguishing between offer letter and appointment letter — the offer letter is pre-joining, the appointment letter is issued on/after joining
✗Not specifying the probation period and conditions for confirmation
✗Vague compensation terms — break down CTC into components (basic, HRA, special allowance, PF, etc.)
✗Including an unenforceable non-compete clause — focus on non-solicitation and confidentiality instead
✗Not mentioning the notice period clearly for both parties

Frequently Asked Questions

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

An offer letter is issued before joining — it confirms the job offer with basic terms. An appointment letter is issued on or after joining — it contains detailed terms and conditions of employment. Both are legally binding once accepted.

Is an eSigned offer letter valid?

Yes. Under Section 3A of the IT Act, eSigned offer letters are legally valid. Many companies already issue digital offer letters — Aadhaar eSign adds cryptographic proof of identity.

What should the CTC breakup include?

Basic salary, HRA, special/flexible allowance, employer PF contribution, employer ESI contribution (if applicable), gratuity, variable/bonus component, and any other benefits. This should total to the stated CTC.

Can an offer letter be withdrawn after issuing?

An offer letter can be withdrawn before acceptance by the candidate. Once accepted, it becomes a binding contract and withdrawal may have legal consequences, including claims for damages under the Indian Contract Act.

Is probation period legally mandatory?

No, probation is not legally mandatory but is standard practice. State Shops & Establishments Acts may specify maximum probation periods (typically 3–6 months).

Disclaimer

This template is for informational and reference purposes only and does not constitute legal advice. Laws and regulations change periodically. This template may need modification based on your specific circumstances and state laws. Consult a qualified legal professional before executing any legal document. SignSetu is not responsible for any consequences arising from the use of this template. Last updated: April 2026.

Governing Law: Indian Contract Act, 1872 & State Shops & Establishments Acts

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What is a Offer Letter?

Essential Clauses in a Offer Letter

Employee name and designation/role

Date of joining and reporting location

Compensation details (CTC, basic salary, allowances, variable pay)

Probation period and confirmation conditions

Working hours and leave policy reference

Notice period for resignation/termination

Confidentiality and non-disclosure obligations

Code of conduct and company policies reference

Conditions precedent (background verification, medical fitness)

Signature of authorised company representative

Can a Offer Letter Be Signed with Aadhaar eSign?

Common Mistakes to Avoid

✗Not distinguishing between offer letter and appointment letter — the offer letter is pre-joining, the appointment letter is issued on/after joining

✗Not specifying the probation period and conditions for confirmation

✗Vague compensation terms — break down CTC into components (basic, HRA, special allowance, PF, etc.)

✗Including an unenforceable non-compete clause — focus on non-solicitation and confidentiality instead

✗Not mentioning the notice period clearly for both parties