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Appointment Letter (Labour Code Ready)

Appointment letters are now a statutory requirement under the OSH Code. This free template covers the particulars an appointment letter should record.

An appointment letter is the written record an employer issues when a person joins, setting out designation, pay, hours, leave, probation and notice. The Occupational Safety, Health and Working Conditions Code, 2020 requires covered establishments to issue one to every employee.

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What to watch when you use this

  • The Occupational Safety, Health and Working Conditions Code requires employers to issue appointment letters to workers.
  • Required particulars are prescribed by rules, and State rules are still being notified, so confirm the list for your State.
  • This is an appointment letter, which is a different document from an offer letter.
  • Do not carry over a five-year gratuity statement for a fixed-term employee; that threshold is now one year.

Stamping and registration. Stamp duty is a State subject, and an unstamped or insufficiently stamped instrument is generally inadmissible in evidence under Section 35 of the Indian Stamp Act, 1899 until the duty and penalty are paid. Registration requirements are separate and depend on the instrument and the State. Confirm both for your State before executing this document.

Template
APPOINTMENT LETTER

[COMPANY NAME]
[REGISTERED ADDRESS]
CIN: [CIN]

Date: [DATE]

To,
[EMPLOYEE NAME]
[ADDRESS]

Subject: Letter of Appointment

Dear [EMPLOYEE NAME],

We are pleased to appoint you on the following terms.

1. DESIGNATION AND REPORTING
You are appointed as [DESIGNATION] in the [DEPARTMENT] function, reporting to [REPORTING MANAGER / DESIGNATION].

2. DATE OF COMMENCEMENT
Your employment commences on [DATE].

3. NATURE OF ENGAGEMENT
Your engagement is [permanent / fixed-term for a period of [PERIOD] ending on [DATE]].

4. PLACE OF WORK
Your place of work is [LOCATION]. You may be required to work from such other location as the Company may reasonably require.

5. REMUNERATION
Your remuneration is set out in Annexure A. Payment will be made monthly, subject to deduction of tax at source and other lawful deductions.

6. HOURS OF WORK AND WEEKLY OFF
Working hours and weekly off are as per Company policy read with the [STATE] Shops and Establishments legislation applicable to your place of work.

7. LEAVE
You are entitled to leave in accordance with Company policy and the applicable [STATE] Shops and Establishments legislation.

8. PROBATION
You will be on probation for [PERIOD] from the date of commencement. On satisfactory completion, your appointment will be confirmed in writing. If no written extension is issued before the end of the probation period, your appointment will stand confirmed.

9. NOTICE PERIOD
After confirmation, either party may terminate this appointment by giving [NOTICE PERIOD] written notice, or payment in lieu at the Company's option. During probation, the notice period is [PROBATION NOTICE] for either party.

10. STATUTORY BENEFITS
You will be covered under applicable social security provisions in accordance with the Code on Social Security, 2020 and the rules made under it. Where you are engaged on a fixed-term basis, gratuity eligibility arises on completion of one year of service.

11. CONFIDENTIALITY
You will not, during or after your employment, disclose or use for any purpose other than the Company's business any confidential information belonging to the Company or its clients, except as required by law.

12. INTELLECTUAL PROPERTY
Work created by you in the course of your employment vests in the Company. This clause does not extend to work created outside the course of your employment, without use of Company resources, and unrelated to the Company's business. Any such existing work is listed in Annexure B.

13. POLICIES
You are required to comply with Company policies, including the policy on prevention of sexual harassment framed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

14. GOVERNING LAW AND DISPUTES
This letter is governed by the laws of India. The courts at [CITY] shall have jurisdiction, subject to any arbitration agreement between the parties.

Please sign and return the duplicate copy of this letter in token of your acceptance.

For [COMPANY NAME]

_______________________
[NAME], [DESIGNATION]

Accepted:

_______________________
[EMPLOYEE NAME]     Date: [DATE]

ANNEXURE A: REMUNERATION
[Set out the salary structure, including basic wages and each allowance separately.]

ANNEXURE B: PRE-EXISTING WORK EXCLUDED FROM CLAUSE 12
[List, or state "None".]

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This free template is provided by ClauseAudit as general information, not legal advice, and using it does not create an advocate-client relationship. Replace every [BRACKETED] placeholder. Stamp duty and registration requirements vary by State and are your responsibility. Have the final document reviewed by a qualified advocate before use.

When to use this template

  • When a new employee joins and you need a written record of the terms of appointment.
  • When reviewing your HR paperwork after the Labour Codes came into force on 21 November 2025 and some employees have no written appointment letter.
  • When converting an accepted offer letter into the formal terms that apply from the joining date.
  • When engaging a fixed-term employee, so the end date and fixed-term benefits are recorded clearly.

How to fill it in

  1. Fill in the company name, registered address, CIN and date, and the employee's name and address exactly as they appear on their identity documents.
  2. In clause 3, choose permanent or fixed-term and delete the other option. For a fixed-term engagement, state the period and the end date.
  3. Prepare Annexure A showing basic wages and each allowance separately. Check the split against the definition of wages in the Code on Wages, 2019, because it affects provident fund, gratuity and other contributions.
  4. Check working hours, weekly off and leave against the Shops and Establishments law and the Labour Code rules of the State where the employee works. State rules vary.
  5. Fill in the probation period, the notice during probation and the notice after confirmation. Notice that is the same for both sides is easier to defend.
  6. Ask the employee to list any pre-existing work in Annexure B, or write "None".
  7. Sign two copies, give one to the employee and keep the countersigned copy on file. Appointment letters are not usually registered; ask an advocate whether your State's stamp law treats yours as an agreement attracting duty.

Key clauses explained

Nature of engagement (clause 3)
Permanent and fixed-term employees are treated differently under the Labour Codes, including for gratuity. Stating the category and end date avoids later disputes about which rules apply.
Remuneration and Annexure A (clause 5)
Listing basic wages and allowances separately lets both sides check the structure against the Code on Wages, 2019, where allowances above half of total remuneration are added back into wages.
Probation with deemed confirmation (clause 8)
If no written extension is issued before probation ends, the employee stands confirmed. This removes the common uncertainty of an employee left on indefinite probation.
Notice period (clause 9)
Sets separate notice for probation and after confirmation, with payment in lieu at the Company's option. Check that the period is reasonable and applies to both sides.
Statutory benefits (clause 10)
Records coverage under the Code on Social Security, 2020 and the fixed-term gratuity position. Confirm the gratuity wording against current rules before issuing the letter.
Intellectual property carve-out (clause 12)
Work made in the course of employment vests in the Company, but work made outside it, without Company resources and unrelated to the business, stays with the employee.

Frequently asked questions

Is an appointment letter the same as an offer letter?

No. An offer letter is a proposal the candidate accepts before joining. An appointment letter records the terms once the person actually joins, and it is the document the OSH Code, 2020 refers to. Many employers issue both. If the two conflict, the later signed appointment letter will usually be treated as the operative terms, so keep them consistent.

Is every employer legally required to issue an appointment letter?

The Occupational Safety, Health and Working Conditions Code, 2020 requires employers in establishments covered by the Code to issue an appointment letter to each employee, in the form prescribed by rules. Coverage depends on the type of establishment and the number of workers, and the prescribed particulars depend on rules that vary by State. Issuing one is good practice even where the Code may not strictly apply.

Can the company change my salary structure after I sign?

Salary is a core term, so a reduction generally needs your consent. Restructuring components can also change take-home pay, because under the Code on Wages, 2019, allowances above half of total remuneration are added back into wages when contributions are calculated. Ask for any change in writing and compare the new Annexure A with the old one before you accept it.

What happens if probation ends and I hear nothing?

Under clause 8 of this template, if no written extension is issued before probation ends, the appointment stands confirmed. Not every letter says this. Where a letter is silent, the answer depends on its wording and on the employer's standing orders or policies, and courts have not treated confirmation as automatic in every case. A deemed confirmation clause removes that uncertainty.

Does a fixed-term employee get gratuity?

The Labour Codes remove the usual five-year continuous service condition for fixed-term employees, and the generally stated position is that gratuity becomes payable on a pro-rata basis after one year of fixed-term service. Commentators have noted that the Codes are not perfectly aligned on this point, so check the current rules and official guidance before relying on a specific threshold.

Can my employer claim things I build on weekends?

Under Section 17 of the Copyright Act, 1957, the employer is generally the first owner of work made in the course of employment under a contract of service. Work made outside that scope is generally yours. Clause 12 of this template states the carve-out expressly and lets you list existing work in Annexure B, which avoids later arguments about what was created when.

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This free template is general information about Indian law as at 2026-10-10, not legal advice, and using it does not create an advocate–client relationship. Replace every bracketed placeholder and have the final document reviewed by a qualified advocate before use.