Offer Letter
An offer letter is the document proposing employment — role, compensation, start date and key conditions — issued before the employee accepts and joins.
Also known as: job offer letter, offer letter format
It is a proposal, not yet a contract of employment. Acceptance is what turns it into an agreement, which is why the acceptance itself should be recorded rather than assumed from the fact that someone turned up.
The compensation section is where offers go wrong. Quoting CTC without a breakup invites the first-payslip conversation, because the candidate has compared offers on a number that does not reach their account. A structured breakup at offer stage costs nothing and prevents it.
Conditions worth stating explicitly: probation length, notice period during and after probation, whether the offer depends on background verification or document submission, and the date the offer lapses. An open-ended offer is a negotiating position the employer did not intend to take.
Handled in SignHR
Onboarding & Offboarding
Joining to exit in one flow: offer letters, digital joining forms, e-signatures, welcome workflows, clearance checklists, and full-and-final settlement.
See onboarding & offboardingRelated terms
Appointment Letter
An appointment letter is issued after an employee joins and confirms the terms of employment — the document that governs the relationship, where the offer letter only proposed it.
Probation Period
Probation is an initial period of employment during which both sides assess the fit, usually carrying a shorter notice period and reduced access to some benefits until the employee is confirmed.
CTC (Cost to Company)
CTC is the total annual cost an employer bears for an employee — salary, allowances, employer contributions and benefits combined — not the amount the employee receives.
Notice Period
Notice period is the time an employee must continue working after resigning, or that an employer must give before terminating, as set by the employment contract.