In employment and recruitment, “Appointment Letter” and “Offer Letter” from time to time are interchangeable, but both have different stages in the hiring process. Though these two documents are equally important in terms of formalizing the employment agreement, they have different purposes. An Offer Letter is usually the first in the very process of recruiting: through this letter, a candidate is invited to join the organization formally. An Appointment Letter certifies that the offer is accepted and is a final confirmation of the employment agreement itself.
In this blog, we are covering the specifics of these two important documents – appointment letter vs offer letter and what exactly they are meant for. The differences between them, the importance of both documents and more.
Difference Between Appointment Letter vs Offer Letter
These are the key differences between an appointment letter vs offer letter:
What is an Offer Letter?
An offer letter is a formal document released by the employer to the selected candidates, disclosing the details of the job title, role, terms of employment, date of joining, work schedule, salary, etc. It is a preliminary document that is offered by the company to the selected candidates to ask for their acceptance of the job offer until the full employment contract is signed.
The offer letter is the first official document issued by the employer to the selected candidates to get their acceptance for the job role at the terms of employment mentioned in the offer letter, and further with other steps mandatory for onboarding into the organization.
The following are the key contents of an offer letter:
- Company Information
- Candidate Information
- Position and Job Description
- Compensation
- Benefits
- Terms and Conditions
- Joining Date
- Acceptance Procedure
This is important for both the employer and employee to come to an understanding of the contract of employment. The candidates need to have an in-depth inspection of the offer letter, understand the terms, and then revert with their queries in case there is any uncertainty or divergence in the agreed terms while appearing for the personal interview (PI). They can question why the terms have diverged, request a fresh offer letter, or preferably accept it soon so that their joining formalities can be fast-tracked.
Thus, the disclosure of offer letters for selected candidates can also allow the employer to promise candidates, reinforce essential working terms, and efficiently carry out recruiting and onboarding operations, facilitating smooth joining to the company.
What is an Appointment Letter?
An appointment letter is a document that drafts the employment contract between the candidate and the company. When the candidate accepts the offer letter, the employer extends a formal contract of employment to the candidate. The document contains details like designation, responsibilities, salary structure, and terms of work.
It is an official document, and candidates can face strict actions if they break any terms and conditions of the letter. The appointment letter is given to the employee after verifying the documents of the candidate’s details. This letter serves as proof of employment for the candidate. Also, the document indicates the key terms and conditions related to the job offer which both employer and employee are bound to adhere to.
The following are the main components that make up an appointment letter:
- Job title
- Joining date
- Terms and conditions of employment
- Job role (Duties and responsibilities)
- Contact details
- Bonds (if any)
- Employment type
Key Differences Between an Offer Letter and an Appointment Letter
| Parameters | Offer Letter | Appointment Letter |
| Definition | This is the first official document that informs the chosen candidates of their offer. | It is a legally binding contract that outlines all of the terms and conditions of employment for the employee to sign and accept. |
| Purpose | This is to explain the employment terms to the chosen candidates before signing the employment contract. | To legally obligate the employer and employee in an employment contract that acts as a reference document for future disputes. |
| Timing | This is the initial formal document, sent after the candidate is selected for the job role. | This is given after the candidate accepts the offer letter. |
| Legality | This is not a legally binding document. | This is a formal and legally binding document. |
| Content | Contains job details and terms such as job title, proposed joining date, salary, and initial benefits. | Contains comprehensive information, including job responsibilities, work hours, detailed compensation package, employment terms, etc. |
Also Read:- NSG Commando Salary || Â Air Aisa CEO Salary || Salary Slip Format
The Transition from Offer to Joining to Appointment
Once the candidate is selected for a job role, he/she is presented with an offer letter that is given to seek the candidate’s approval for the mentioned job role, salary, work details, and terms and conditions. Once the candidate accepts the offer letter, they are provided with a joining letter. The joining letter is often given when the candidate acknowledges the offer letter and is joining the company and contains additional details like the start date, reporting information, and an initial schedule. While an offer letter is not legally binding, a joining letter is.
After the candidate has joined the organization, the last step of documentation is done, and the candidate is given an appointment letter. It formalizes the employment relation and provides full terms and legal protection. This document is generally more detailed and legally binding than offer and joining letters.
Appointment Letter Format 
Check out this reference for the appointment letter Word format:
[Company Letterhead][Date][Candidate Name]
[Candidate Address]
Subject: Appointment for the post of <designation>
Dear [Candidate Name],
We are pleased to offer you the position of [Job Title] at [Company Name]. We were impressed with your qualifications, experience, and interview performance, and we believe that you will be a valuable asset to our team.
Position Details
- Job Title: [Job Title]
- Department: [Department]
- Reporting Manager: [Manager Name]
- Start Date: [Start Date]
- Salary: [Annual Salary]
Responsibilities
As [Job Title], you will be responsible for the following:
- [List of Primary Responsibilities]
Qualifications
You must meet the following qualifications to be considered for this position:
- [List of Required Qualifications]
Work Schedule
This is a [Full-Time/Part-Time] position requiring approximately [Number of Hours] hours per week. Your regular work hours will be [Start Time] to [End Time], [Days of the Week].
Leaves/Holidays
- You are entitled to get casual leaves of <no.of days> during a year
- You are entitled to <no of days of sick leave> working days of paid sick leave
- The company shall notify a list of declared holidays at the beginning of each year
Probation Period
Your employment will be subject to a probation period of [Number of Months]. During this period, your performance will be evaluated to ensure that you meet the expectations of the position.
Acceptance
Kindly sign and return a duplicate of this letter by [Date] to confirm your acceptance of this offer. If you have any questions or concerns regarding the offer, please freely reach out to me at: [Contact Information]!
We eagerly await your arrival in our group and collaboration with you to achieve amazing things.
Sincerely,
[Your Name]
[Your Title]
Offer Letter Format 
Check out this reference for the offer letter Word format:
Dear [Candidate Name],
[Company name] is pleased to provide you with an offer for the [full-time, part-time, etc.] position of [job title], subject to [drug test, background check, etc.], with an expected start date of [start date].
As the [job title], you will be responsible for [brief mention of job responsibilities and expectations].
You will report directly to [manager/supervisor name and title] at [workplace location]. Working hours are from [hours of day, days of week].
The starting salary for this position is [dollar amount] per [hour, year, etc.]. Payment is on a [weekly, biweekly, monthly, etc.] basis by [direct deposit, check, etc.], starting on [date of first pay period]. In addition, you will be eligible to receive [discuss additional compensation potential].
[Company name] offers a comprehensive benefits program, which includes [medical insurance, 401(k), paid time off, etc.].
Your employment with [company name] will be voluntary, meaning that both you and the business may end it whenever you choose, with or without prior warning or justification. This letter does not serve as a contract outlining the conditions or length of employment.
Please confirm your acceptance of this offer by signing and returning this letter by [offer expiration date].
Sincerely,
[Your Signature]
[Your Printed Name]
[Your Job Title]
Candidate Signature: ______________________________
Candidate Printed Name: ______________________________
Date: ______________________________
Conclusion
In short, while both offer and appointment letters are needed to form working relationships, their separate roles define particular stages of the hiring process. While the appointment letter gives clear employment details, the offer letter is the first formal invitation. This conciseness creates a seamless progression from hiring to work, which is mutually helpful for employers and employees. Understanding these nuances ensures that all involved have a fulfilling and law-compliant work life.
Also Read:- Human Resource Accounting || Relieving Letter Format || HR Theories
FAQs
1) What is the primary purpose of an Offer Letter?
The first formal letter sent by a company to a candidate providing him/her with an offer of employment is referred to as an offer letter. It initiates the hiring process by laying down key employment terms like job title and function, compensation, and benefits.
2) What is the difference between an appointment letter vs an offer letter?
Once the offer letter is accepted, the new employee receives an appointment letter. It establishes the basis of the employment relationship by formalizing the promise and providing detailed information like the date of joining, work timings, and specific job duties.
3) Is an offer letter legally binding?
An offer letter is not usually legally enforceable. It is a preliminary document setting out the terms of the offer of employment. The appointment letter, however, is a formal and legally enforceable contract of employment.
4) Is an appointment letter a legally binding document?
Indeed, an appointment letter is a binding document that serves as evidence of an individual’s agreement to the terms and conditions of his or her employer and the company’s assignment of a particular employment position.
5) What should be done if you haven’t received an appointment letter after accepting the job offer?
The employees generally get an appointment letter on the joining date of their new organization after finalizing the joining formalities. If the company has not given the appointment letter, you may directly approach the HR department and request the same.
Recommended:-
| 1 | CRNA Salary in India |
| 2 | Ultrasound Tech Salary |
| 3 | lawyer salary in India |
| 4 | Paramedic salary |
| 5 | Veterinary Technician salary |