Offer Letter

About the offer letter tool

How to make an offer letter in VyaparKit

1. 1

   Enter candidate and role

   Open Offer Letter and fill the candidate's name and address, designation, department, reporting manager, work location and proposed joining date.

2. 2

   Set the CTC

   Type the annual CTC. The tool proposes a breakup into basic, HRA, other allowances, employer PF and ESI where applicable; adjust any line and the totals and monthly figures update.

3. 3

   Choose the terms

   Set the probation period, notice period, working days and hours. Standard clauses on confidentiality and documents to bring on joining are included and editable.

4. 4

   Add the acceptance line

   Set a date by which the candidate must accept. The letter ends with a signature block for your signatory and an acceptance line for the candidate to sign and date.

5. 5

   Create and send

   Click Create, then Download PDF. Email the PDF or share it on WhatsApp, and file the signed copy back in Documents when it returns.

What an offer letter should cover

• Company letterhead, date and a reference number such as OFR/26-27/0003.
• Candidate name and address, designation, department, reporting manager and place of work.
• Proposed date of joining and the date by which the offer must be accepted.
• Annual CTC with a breakup: basic, HRA, other allowances, employer PF (12%) and ESI (3.25%) where applicable, and any variable or bonus component with its condition.
• Monthly gross and an indicative take-home, noting that TDS under Section 192 depends on the employee's declarations.
• Probation period (commonly 3 to 6 months) and what happens on confirmation.
• Notice period during and after probation, and whether it can be bought out.
• Working days and hours, leave entitlement in brief, and reference to company policies.
• Documents to submit on joining (PAN, Aadhaar, bank details, previous relieving letter), signature of the authorised signatory and the candidate's acceptance line.

Who uses the offer letter

Offer Letter: frequently asked questions

Is an offer letter legally binding in India?

An offer letter becomes a contract once the candidate accepts it, usually by signing and returning the acceptance copy. Both sides then have obligations: the employer to engage the candidate on the stated terms and the candidate to join. In practice, enforcement before joining is rare, but the terms in the letter, especially CTC, probation and notice, are what a court or labour officer will look at later, so write them carefully.

What is the difference between an offer letter and an appointment letter?

The offer letter is sent before joining and asks the candidate to accept the role and terms. The appointment letter is issued on or after joining and confirms the appointment with fuller terms and conditions, often running to several pages. Many small businesses issue only an offer letter with the key terms; if you do that, make sure it covers probation, notice, working hours and confidentiality so it can serve as the employment contract.

What should the CTC breakup in an offer letter include?

Show basic, HRA, other or special allowances, any statutory bonus, and the employer's contributions to PF and ESI where they apply, adding up to the annual CTC. Variable pay should be listed separately with its condition. Below the table, state the monthly gross and an indicative net pay so the candidate understands that CTC is not the amount credited to the bank. Gratuity provision, if included, should be shown as a separate line.

How long should the probation period be?

Three to six months is standard in India; a few employers use up to a year for senior roles. State the length, whether it can be extended, the notice period that applies during probation (often shorter, 15 to 30 days), and that confirmation will be communicated in writing. Some state Shops and Establishments Acts and Standing Orders have rules on probation for covered establishments, so check with your CA or consultant if you employ many workers.

Can an offer letter be withdrawn after it is issued?

Before acceptance, an offer can be withdrawn at any time. After acceptance, withdrawing it is a breach of contract and the candidate could in theory claim damages, especially if they resigned elsewhere on the strength of your letter. Practically, most withdrawn offers are settled by paying a month's salary or nothing at all, but include a clause stating that the offer is subject to document verification and background checks so you have a stated ground.

Should the offer letter mention the notice period?

Yes, and it is one of the most disputed terms if left out. State the notice period during probation and after confirmation, whether the employer can pay in lieu of notice, and whether the employee can buy out the notice. Thirty days is common for junior roles and sixty to ninety days for senior ones. The same term should appear in the appointment letter and be consistent with your state's Shops and Establishments rules.