Offer Letter Format
An offer letter is the formal document a company issues to a selected candidate confirming its intention to hire them for a specific role, along with the proposed compensation, joining date and key terms of employment. In India it is usually issued after the final interview and salary negotiation, and it becomes a binding contract once the candidate signs and returns the acceptance copy.
HR teams issue the offer letter before the detailed appointment letter: the offer secures the candidate's commitment (often with a deadline to accept), while the appointment letter issued on or after the date of joining records the full terms of service. A clear, complete offer letter reduces renegotiation, no-shows and disputes about what was promised during hiring.
Offer Letter — sample format
Copy the template below and replace the [bracketed] fields.
[On Company Letterhead]
Ref. No.: [Reference Number]
Date: [Date]
To,
[Candidate Name]
[Candidate Address]
[City, State – PIN]
Subject: Offer of Employment for the position of [Job Title]
Dear [Candidate Name],
Further to your application and the subsequent interviews you had with us, we are pleased to offer you the position of [Job Title] in the [Department Name] department of [Company Name] ("the Company"), on the following terms:
1. Date of Joining: You are requested to join on or before [Date of Joining] at our office at [Office Address]. If you are unable to join by this date, this offer shall stand withdrawn unless extended in writing by the Company.
2. Compensation: Your annual Cost to Company (CTC) will be INR [CTC Amount] ([CTC in Words]) per annum. The detailed break-up of your salary, including basic pay, allowances, statutory contributions (Provident Fund, ESI/insurance as applicable) and any variable pay, is set out in Annexure A. Variable pay of [Variable Amount/Percentage], if any, will be payable as per the Company's performance policy.
3. Probation: You will be on probation for a period of [Probation Period, e.g., 6 months] from your date of joining. On successful completion, your employment will be confirmed in writing.
4. Place of Work: Your initial place of posting will be [Location]. The Company may transfer you to any of its offices, departments or group companies in India or abroad, as per business requirements.
5. Background Verification: This offer is contingent upon satisfactory verification of your credentials, educational qualifications, past employment and references. Any misrepresentation may result in withdrawal of this offer or termination of employment.
6. Documents Required at Joining: Please bring originals and photocopies of your educational certificates, relieving letter and experience letters from previous employers, PAN card, Aadhaar card, bank details and passport-size photographs.
7. Notice Period: After joining, either party may terminate the employment by giving [Notice Period, e.g., 60 days] written notice or salary in lieu thereof, as detailed in your appointment letter.
8. Confidentiality: You will be required to sign the Company's confidentiality and code-of-conduct undertakings on joining. This offer and its terms are confidential.
9. Validity: Please confirm your acceptance by signing and returning the duplicate copy of this letter by [Acceptance Deadline Date], failing which this offer will lapse automatically.
We look forward to welcoming you to the [Company Name] team.
Yours sincerely,
For [Company Name]
[Authorised Signatory Name]
[Designation]
[Company Seal]
ACCEPTANCE
I, [Candidate Name], have read and understood the terms of this offer and accept the same. I confirm I will join on or before [Date of Joining].
Signature: ______________ Date: ______________
What to include
- ✓ Compensation and CTC break-up (Annexure A) — the single biggest source of joining disputes; always split fixed, variable and statutory contributions so the in-hand expectation is clear.
- ✓ Date of joining and offer validity — a hard acceptance deadline protects the company from candidates who shop the offer and lets HR release the position cleanly.
- ✓ Probation clause — sets the confirmation timeline and usually a shorter notice period during probation.
- ✓ Background verification contingency — reserves the right to withdraw the offer if credentials or past employment cannot be verified.
- ✓ Transfer/place-of-work clause — gives the company flexibility to post the employee across locations and group entities.
- ✓ Notice period reference — flagging it at offer stage avoids surprises when the appointment letter is signed.
Legal notes (India)
- § An accepted offer letter is a valid contract under the Indian Contract Act, 1872 — offer, acceptance and consideration are all present — so arbitrary withdrawal after acceptance can expose the employer to a claim for damages, even though Indian courts do not force an employer to actually employ someone (no specific performance of personal service contracts).
- § For employees who qualify as 'workmen', terms must not be less favourable than applicable law — e.g., state Shops and Establishments Acts govern working hours, leave and termination notice, and statutory deductions under the EPF & MP Act, 1952 and ESI Act, 1948 apply at the prescribed wage thresholds.
- § India's four consolidated Labour Codes (including the Code on Wages, 2019) have been notified and are being operationalised in phases; verify the current position and applicable state rules before fixing wage structure percentages such as the basic-pay proportion.
Frequently asked questions
Is an offer letter legally binding in India?
What is the difference between an offer letter and an appointment letter?
Can a company withdraw an offer letter after the candidate accepts it?
Explore the platform
Payroll & compliance, on autopilot.
Free for unlimited employees — PF, ESI, PT & TDS handled every cycle.