Appointment Letter
Meaning & Definition
The appointment letter, which is a formal written document provided by an employer to a chosen candidate as confirmation of employment from that organisation, includes various important details such as Job Title, Date of Joining, Salary Structure, Work Site, Reporting Manager, and Employment Terms. It serves as evidence of employment in India and establishes appropriate expectations on behalf of both the employer and candidate.
Importance of Appointment Letters:
- Official confirmation of employment following selection.
- Defines the role, wage, and terms of employment in writing to eliminate future conflicts.
- Reference for Payroll, HR & Compliance Records.
- Helps employees to understand policies, probation, and notice period policies.
- Creates professionalism and builds trust from day one.
Compliance & Policy Considerations
There is no requirement under the labour laws of India for the issuance of an appointment letter; however, it is recommended that HR best practices be used to follow the issuance of appointment letters to employees.
Information within an appointment letter assists compliance with the following Acts:
- Shops and Establishments Act.
- Industrial Employment Act (for applicable businesses).
Employers may be required to provide appointment letters to be used during Labour Compliance and Audits, and during the resolution of disputes.
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