An offer letter is the first official handshake between your company and a new employee. Done right, it builds trust and sets expectations. Here's a comprehensive checklist every Indian employer should follow:
1. Basic Details of the Offer
- Candidate's Name
- Designation / Job Title
- Department / Team
- Work Location (especially for remote or hybrid setups)
2. Start Date and Work Timings
Mention the proposed joining date and the standard working hours. Include information about weekend policy or shift hours if applicable.
3. Compensation Structure (CTC)
Break down the salary into:
- Fixed Pay
- Bonuses / Variable Pay
- Incentives
- Deductions (PF, ESI, tax)
4. Probation and Confirmation
Include probation duration, evaluation criteria, and termination rights during probation.
5. Benefits and Perks
- PF and ESI eligibility
- Gratuity (if applicable)
- Health insurance details
- Leave policies
- Perks like internet or mobile reimbursements
6. Key Terms and Conditions
- Notice period
- Termination terms
- Transfer clause (if any)
- Confidentiality and conduct clauses
7. Signature and Acceptance
Include signature lines and acceptance deadline for clarity and legal validity.
Common Mistakes to Avoid
- Leaving out CTC breakdown
- Not mentioning notice period or PF/ESI obligations
- Using outdated or non-compliant templates
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