What Is the Difference Between Offer Letter and Appointment Letter? | Meaning, and Format

Ensuring new recruits have the proper documents, such as offer letters and appointment letters, is one of the main duties of HR professionals. Thus, HR professionals must be able to comprehend the distinctions between an offer letter and an appointment letter to avoid confusion and guarantee adherence to employment rules.

An offer letter outlines the position to be filled, the salary offered, and other requirements for a new candidate. The appointment letter provides detailed information about the position, pay, employment contract, and business to help an employee adjust to a new role. Let us examine the detailed differences between the two to have a clear understanding of them.

Difference Between Offer Letter and Appointment Letter

After completing your interviews, you are given an offer letter. The company will send you an appointment letter as soon as you accept it. Here is the major difference between an offer letter and an appointment letter:

1. Objective

An offer letter’s aim distinguishes it from an appointment letter. When a candidate receives an offer letter, it is to let them know that the hiring and selection process has gone well. It demonstrates that they think the candidate is qualified for the position.

An appointment letter is sent whenever the applicant accepts and acknowledges the offer letter. When a corporation hires a person for a specific job role, it does so according to a written employment contract.

2. Timeline

An offer letter is always followed by an appointment letter. An offer letter is sent to a candidate after background checks and interviews. This letter declares the company’s intention to recruit the applicant. They can choose to accept it or reject it. The business then sends them an appointment letter when they accept the offer letter. It serves as a formal contract between the business and the new hire.

3. Content

Compared to an appointment letter, the content of an offer letter is much clearer. An offer letter contains information about the position name, pay scale, location, and start date.

The appointment letter, however, is more thorough and in-depth. It is a legal contract between the employer and the employee. The appointment letter includes roles and duties, working hours, and supplementary rewards. It outlines the job conditions, circumstances surrounding contract termination, and other information.

What Is An Offer Letter?

An offer letter is a letter that businesses send to an applicant informing them of a job offer. Offer letters are often issued after the interview stage. Every firm has a different format for its offer letters, but they often include the bare essentials about the prospective job, including the location of the business and the proposed pay. It may also contain information regarding additional benefits that an employee may be eligible for, as well as the date of hire. 

They need to give an employee some time to quit their existing job. An offer letter will specify any further information that may be required from an employee before their start dates, such as birth certificates, professional licences, or Social Security numbers. An offer letter will give the employee time to respond to the offer. If there is no response by the specified date, the employer may recruit another applicant. 

Format of an Offer letter

[Company Logo]

MM/DD/YYYY
Candidate Name
Address of Candidate
City, State, Pincode
Dear [Candidate name],

We are glad to offer you the [part-time, full-time, etc.] position of [job title] at [company name] with a start date of [start date], subject to [background check, and so on]. In [workplace location], you will report directly to [manager/supervisor name]. We feel your qualifications and expertise are a good fit for our organization.

You will be needed to [briefly state important work activities and responsibilities] in this role.
This position’s annual starting compensation is [amount], payable on a [monthly, weekly, etc.] basis by [direct deposit, check, etc.], beginning on the [first pay period]. We are providing you [explain stock options, incentives, commission arrangements, etc.if relevant] in addition to this beginning pay.

Your job with [Company Name] will be on an at-will basis, which means you and the firm can end the relationship at any time for any reason. This letter does not constitute a contract or a guarantee of a job for a specific amount of time.

As an employee of [Company Name], you are also qualified for our benefits program, which includes [medical insurance, vacation time, and other advantages] that will be detailed in the employee handbook, orientation package, and so on.

Please sign and return this letter by [offer expiry date] to indicate your acceptance of this offer.

We are thrilled to have you on board! If you have any queries, please contact us at any time.

Sincerely,
[Your Signature]
[Your Printed Name]
[Your Job Title]
Signature: ______________________________
Printed name: ___________________________
Date: __________________________________

What is an Appointment Letter?

Once a candidate has acknowledged their interest in accepting the position, an appointment letter is sent to them. When a candidate accepts an offer letter from a company, a formal employment contract is delivered by the employer. There are specifics like position, duties, pay scale, and working conditions. 

Appointment letters serve as documentation of the employment contract between the company and the new hire and give further information about the role to assist in the new hire’s preparation for work. As it is an official document, applicants who violate any of its terms might be subject to punishment. An appointment letter is submitted before the candidate’s information is verified through document review.

Format of an Appointment letter

Date:
Candidate’s Name:
Address:
Dear (Name of the candidate),
Appointed as (Name of the designation/position),

We referred to your recent interview regarding the aforementioned position and are delighted to notify you that we will offer you the position with our company effective (Date) on the terms and conditions that follow:

Salary:The salary offered to the applicant.
Probationary Period:After accepting the position, the candidate must complete the probationary period.
Working Hours:The hours the employee is expected to work during the week (Monday through Friday), with Saturday and Sunday off. Time for Lunch Break.
Vacation Policy:List the number of annual leaves awarded. Information about parental leave, sick leave, earned leave, casual leave, and other types of leave.
Notice Period Provision:If an employee wishes to quit the organisation, he or she must adhere to the notice period specified in the appointment letter by the current company.

(Name of the employee),
Signature
(Name of the provider of the appointment letter),
Signature

FAQs on The Difference Between Offer Letter and Appointment Letter

Here are some frequently asked questions on The Difference Between Offer Letter and Appointment Letter:

When are appointment letters given?

On the first day the applicant begins work, appointment letters are given to them.

If an employee signs the appointment letter, may the job offer be withdrawn?

If there are sufficient legal justifications, an employer has the authority to revoke an employment offer. If not, the candidate can take legal action against the employer.

Is a letter of appointment a legal document?

After being signed and approved by the employee, an appointment letter is said to be legally binding. So, a letter of appointment is a legal document.

How many different kinds of appointment letters exist?

Letters of appointment are usually of two types – letters for jobs and letters for internships.

What is the importance of an offer letter?

It offers details on the work responsibilities, salary, and further employment requirements. It signifies the beginning of a great working partnership. It creates realistic expectations. It serves as legal documentation.

An offer letter contains less information than an appointment letter. These legal documents are different versions of an official employment contract. To receive the other, a candidate must accept the first. Although both letters are official, they are being sent for quite different reasons. The offer letter is the first step in bringing a new employee on board and demonstrates the company’s desire to do so. The appointment letter is not sent to the candidate until after they have accepted the offer letter. The same serves to inform the candidate of further information about the role and business.

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