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Whenever a company hires a new employee, the HR of the organisation hands that candidate an appointment letter.
Now, for many people, this letter might come across as a mere formality. However, it holds quite an importance. The reason is that this contains all the details the employee should know about his/her employment in writing. The aim is to provide clarity to the new employee about their position in the organization. For employers, it’s written proof that the candidate has accepted the employment.
This guide will give you insights into the appointment letter format. From Word templates to samples, and also how you can draft one. We’ve got you covered.
An appointment letter is an official document that the organisation presents to the new candidates. The letter is essential as it contains employment-related details such as their role, responsibilities, salary structure, leaves, terms and conditions, company’s policy, perks and benefits, etc.
Now, it also happens sometimes that the new candidates consider the “offer letter” as an “appointment letter”. However, there is a distinction between the two.
An offer letter contains basic terms. It’s an invitation to the candidate to join the organisation. An appointment letter is a formal employment document that states that the candidate has accepted the employment and that the letter has further necessary details.
Let’s take a look at the key elements that get included in the appointment letter format.
A well-written, comprehensive appointment letter format includes all vital information. Skipping even a single information can create a lot of issues in the future. To ensure this doesn’t take place, here are the key elements every appointment letter format must have.
It begins with drafting basic information. This includes the company’s name, official address, and contact information, followed by the employee’s full name, address, contact details, etc.
The next details come – job description. As the name suggests, the job description contains the new candidate’s qualifications, job summary, job title, roles and responsibilities, reporting structure, terms and conditions, and other benefits.
Whether an employee is new or an experienced one, salary is one of the core motivations of every employee. This section clearly highlights the salary the employee will receive. It breaks down the structure by mentioning the necessary taxes associated with the employee’s salary. Apart from that, it provides details on allowances, incentives, bonuses, etc.
The aim of mentioning this section is to inform the new employee about the office hours, overtime, seasonal holidays, and any other holidays. Because of the availability of working models like hybrid and remote, the letter highlights the nature of working. In some cases, it also includes the location where the candidate will work.
Every organisation often starts employment with a probationary period. Although there is no fixed duration as such, and it is different for every company, generally, the probation of an employee ranges from 3-6 months. The letter highlights the new employee’s probationary period and also mentions the duration at which the probation will turn into an employment confirmation.
The letter should contain a structure regarding employees’ leaves, such as annual leaves, sick leaves, casual leaves, and other holidays, as per the policy. In addition to that, it should also mention maternity and paternity leaves.
The letter defines the duration of a notice period before resignation or termination. In certain scenarios, the termination of the employee can happen almost immediately. In some cases, an employee is given the time of 1 to 3 months to look for employment somewhere else.
Mentioning the company’s policy brings clarity to the new candidate. The section contains the content related to the policies, code of conduct, and disciplinary measures in case of any breach, violation, or misconduct.
An appointment letter always ends with the organisation’s authoritative figure’s signature. This could be HR managers, directors, business owners, etc. It includes the signature, name of the authoritative figure, and the date on which the document was signed.
Clarity starts with the right format.
Superworks’ ready-to-use, easy-to-customise appointment letters make onboarding smooth.
Not every HR manager or business owner has the time to sit and create appointment letters from scratch. That’s why having a ready-to-use, professional appointment letter in Word format can be a lifesaver.
While the basic structure remains the same, the tone and details in the appointment letter may vary. To make it easier, here are a few appointment letter samples.
To,
[Candidate’s Name]
[Address]
Subject: Appointment for the position of [Job Title]
Dear [Candidate’s Name],
We are pleased to offer you an appointment as a [Job Title] at [Company Name], effective from [Joining Date]. You will be based at our [Location] office.
Your remuneration and other terms of employment will be as per the discussions held and the policies of the company. Detailed information will be shared with you on your joining day.
Please confirm your acceptance of this appointment by signing and returning a copy of this letter by [Acceptance Date]. We look forward to working with you and wish you a successful career with us.
Sincerely,
[Authorized Signatory]
[Designation]
[Company Name]
To,
[Candidate’s Name]
[Address]
Subject: Appointment for the position of [Job Title]
Dear [Candidate’s Name],
We are pleased to confirm your appointment as [Job Title] with [Company Name], effective from [Joining Date]. You will be reporting to [Reporting Manager] at our [Location] office.
1. Compensation: Your total Cost to Company (CTC) will be INR [Annual CTC] per annum. The breakup is as follows:
– Basic Salary: INR [Amount]
– House Rent Allowance (HRA): INR [Amount]
– Special Allowance: INR [Amount]
– Provident Fund (Employer Contribution): INR [Amount]
– Other Benefits: As per company policy
2. Probationary period: You will be on probation for a period of [Probation Period]. On successful completion of probation, your services will be confirmed in writing.
3. Working hours: Your normal working hours will be from [Start Time] to [End Time], [Days of the Week]. You may be required to work beyond normal hours based on business requirements.
4. Leave policy: You will be entitled to leave as per the company’s leave policy applicable from time to time.
5. Notice period: Either party may terminate this employment by giving [Notice Period] written notice or salary in lieu thereof.
6. Confidentiality: You are not permitted to disclose the company’s confidential information to any third party.
7. Termination: Your services can be terminated with immediate effect if the company finds any act of misconduct, breach of trust, or violation of company policies on your behalf.
Please sign and return a copy of this letter by [Acceptance Date].
Sincerely,
[Authorized Signatory]
[Designation]
[Company Name]
When it comes to drafting an appointment letter, sometimes even the most experienced HR professionals make mistakes. That’s why, here are some common mistakes one should avoid:
When a new hire joins the organisation, the manager or the HR head presents him/her with the appointment letter. The letter is essential for the employee as it covers every detail one should be aware of.
But it’s more than just putting down the employment details. Drafting an employee appointment letter has its own challenges. However, by using formats and avoiding the common errors mentioned here, one can easily draft an appointment letter.
But HRs can do a lot more than that to level up their productivity. Superworks HRMS & payroll software centralises all your tasks – from payroll processing to attendance tracking, onboarding, offboarding, and whatnot.