Offer Letter

What is Offer Letter?

An offer letter is the first formal document a candidate receives after clearing interviews. It states the role, designation, CTC breakup, joining date, work location, reporting manager, and any joining bonus. The letter is conditional. The offer holds only if the candidate submits required documents (PAN, Aadhaar, education certificates, prior payslips) and clears background verification. Indian companies usually give 30-60 days between offer and joining so the candidate can serve notice at the current job. The offer letter is not the same as an employment contract. The full contract is the appointment letter, issued on day one of joining.

How Offer Letter is used

Get the candidate to sign and return the offer letter within a fixed window (often 5-7 days) so HR can plan onboarding and IT setup.

Offer Letter FAQs

Is an offer letter legally binding?

Partially. It binds both sides to the terms once accepted, but most offer letters allow revocation if the candidate fails BGV or doesn't submit documents.

Can a company withdraw an offer letter?

Yes, before joining if conditions aren't met. After joining, withdrawal becomes termination and the appointment letter rules apply.

What is offer shopping?

When candidates use one offer to negotiate better terms with other employers. Common in tech hiring. Some companies counter, others move on.