Appointment Letter Generator
India 2026

An appointment letter is the formal employment contract between you and your employee. Unlike an offer letter (which is conditional on background checks and document verification), the appointment letter is issued on or before the date of joining and serves as the binding employment agreement. Since the labour codes took effect on 21 November 2025, section 6(1)(f) of the Occupational Safety, Health and Working Conditions Code, 2020 requires the employer to issue a letter of appointment to every employee, with the information and in the form the appropriate government prescribes. An employee who joined earlier without one must be given a letter within three months of the Code's commencement. The Code applies to establishments with ten or more workers, plus factories, mines and some other categories.

A missing or vague appointment letter can create serious problems in disciplinary proceedings, wrongful termination claims, and disputes over notice periods or compensation. Here is what every compliant Indian appointment letter must include.

Offer Letter vs. Appointment Letter: Key Differences

In India, "offer letter" and "appointment letter" are sometimes used interchangeably, but they are legally and practically distinct. The offer letter is sent after the hiring decision, typically before the candidate has resigned from their current job. It is conditional and may be withdrawn if background verification fails or documents are found to be fraudulent. The appointment letter is issued on or near the joining date and is the binding employment contract. If no appointment letter follows, the offer letter becomes the only written record of the terms, which is risky if it lacks key clauses. Since November 2025 it also leaves the employer short of the OSH Code requirement.

Probation Period Rules in India

No central law sets one probation period for every employee. For industrial establishments with 300 or more workers, the Industrial Relations Code, 2020 requires standing orders, and the model standing orders issued by the central government apply until certified ones are in place, so follow the probation clause there. The old Industrial Employment (Standing Orders) Act, 1946 was repealed by the Code. For everyone else, the appointment letter fixes the period, and 3 to 6 months is common practice. Always specify: the duration, the notice period during probation, how performance is assessed, and what happens if probation is extended.

Non-Compete Clauses: Are They Enforceable?

Indian courts have generally held that non-compete clauses that restrict an employee from working after resignation are not enforceable, as Section 27 of the Indian Contract Act 1872 renders void any agreement restraining trade or profession. Non-solicitation clauses (not poaching clients or colleagues) are treated more favorably. You can and should include a non-compete clause in your appointment letter, but be aware that post-termination enforcement through Indian courts is limited. Clauses that apply during employment (not to work for a competitor while employed) are enforceable.

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