Free Template

Employment Offer Letter โ€” India

Transparent offer letter with full CTC breakdown, no bond clause, equal notice period, and all statutory benefits. Fair to the employee.

Offer Letter Header

[COMPANY LETTERHEAD]

Date: [DATE]
Ref: [OFFER REFERENCE NUMBER]

To,
[CANDIDATE FULL NAME]
[CANDIDATE ADDRESS]

Subject: Offer of Employment โ€” [DESIGNATION]

Dear [CANDIDATE FIRST NAME],

We are pleased to offer you the position of [DESIGNATION] in the [DEPARTMENT] department at [COMPANY NAME]. This offer is based on our discussions and your performance in the interview process.

Please review the terms below carefully.

1. Designation and Role

Designation: [DESIGNATION โ€” e.g., Software Engineer]
Department: [DEPARTMENT โ€” e.g., Engineering]
Reporting To: [MANAGER NAME / DESIGNATION]
Location: [OFFICE ADDRESS / Remote / Hybrid]

Your primary responsibilities are outlined in Annexure A (Job Description) attached to this letter.

Your designation may be reviewed and updated based on performance and business needs, through mutual discussion.

2. Date of Joining

Your employment shall commence on [JOINING DATE].

Please report to [LOCATION / PERSON] on your joining date with the following documents:
(a) Educational certificates (originals for verification, copies to retain)
(b) Previous employment relieving letter
(c) PAN card and Aadhaar card copies
(d) 2 passport-size photographs
(e) Bank account details for salary credit

Note: The Company shall not retain original certificates. Only photocopies will be kept on file.

3. Compensation (CTC Breakdown)

Your annual Cost to Company (CTC) shall be โ‚น[AMOUNT] (Rupees [AMOUNT IN WORDS] only).

Monthly Breakdown:
โ”Œโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ฌโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”
โ”‚ Component                    โ”‚ Monthly โ‚น  โ”‚
โ”œโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ผโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ค
โ”‚ Basic Salary                 โ”‚ [AMOUNT]   โ”‚
โ”‚ House Rent Allowance (HRA)   โ”‚ [AMOUNT]   โ”‚
โ”‚ Special Allowance            โ”‚ [AMOUNT]   โ”‚
โ”‚ Conveyance Allowance         โ”‚ [AMOUNT]   โ”‚
โ”‚ Medical Allowance            โ”‚ [AMOUNT]   โ”‚
โ”œโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ผโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ค
โ”‚ Gross Salary                 โ”‚ [AMOUNT]   โ”‚
โ”œโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ผโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ค
โ”‚ Employer PF Contribution     โ”‚ [AMOUNT]   โ”‚
โ”‚ Employer ESI (if applicable) โ”‚ [AMOUNT]   โ”‚
โ”‚ Gratuity Provision           โ”‚ [AMOUNT]   โ”‚
โ”‚ Insurance (Group Policy)     โ”‚ [AMOUNT]   โ”‚
โ”œโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ผโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ค
โ”‚ Total CTC (Monthly)          โ”‚ [AMOUNT]   โ”‚
โ”‚ Total CTC (Annual)           โ”‚ [AMOUNT]   โ”‚
โ””โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”ดโ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”€โ”˜

Deductions from Gross Salary:
- Employee PF Contribution: 12% of Basic (โ‚น[AMOUNT])
- Professional Tax: As per state rules
- Income Tax (TDS): As per applicable slab

Net Monthly Take-Home (Approx.): โ‚น[AMOUNT]

Salary shall be credited to your bank account by the [LAST WORKING DAY / 1st] of every month.

4. Probation Period

You shall be on probation for a period of [3-6] months from the date of joining.

During probation:
(a) All statutory benefits (PF, ESI, paid leave) shall apply from Day 1
(b) Performance reviews shall be conducted at [MIDPOINT] and end of probation
(c) Notice period during probation: [15-30] days for both parties
(d) Either party may terminate employment during probation with the applicable notice

Upon successful completion, you shall be confirmed as a permanent employee in writing.

If probation needs to be extended, you shall be notified in writing with clear reasons and improvement areas.

5. Notice Period

During probation: [15-30] days' notice by either party
After confirmation: [30-60] days' notice by either party

The notice period is equal for both the Company and the Employee.

Either party may pay salary in lieu of notice to waive the notice period.

The Company shall not withhold the relieving letter, experience certificate, or final settlement for more than 30 days after the last working day.

6. No Bond Clause

There is NO service bond or minimum service requirement attached to this offer.

You are free to resign at any time by serving the applicable notice period.

Note: Section 27 of the Indian Contract Act, 1872, makes agreements in restraint of trade void. Service bonds are generally unenforceable in India unless the employer can demonstrate:
(a) Significant, specialised training was provided (not routine onboarding)
(b) The bond amount is proportional to the actual, documented training cost
(c) The bond was entered into with free consent and no coercion

7. Leave Policy

You shall be entitled to the following leaves per calendar year (pro-rated for the year of joining):

Earned/Privilege Leave: [12-18] days per year
Casual Leave: [6-12] days per year
Sick Leave: [6-12] days per year
Public Holidays: As per the Company holiday calendar (minimum as per state Shops & Establishments Act)

Maternity Leave: 26 weeks (as per Maternity Benefit Act, 1961)
Paternity Leave: [5-15] days (Company policy)

Unused earned leave may be carried forward or encashed as per Company policy. Details are in the Employee Handbook.

8. Statutory Benefits

The Company shall comply with all applicable labour laws including:

(a) Provident Fund (PF): The Company shall contribute 12% of your Basic Salary to your EPF account as per the EPF Act, 1952. Your equal 12% contribution shall be deducted from salary.

(b) Employee State Insurance (ESI): If applicable (gross salary โ‰ค โ‚น21,000/month), both employer and employee contributions shall be made as per ESI Act, 1948.

(c) Gratuity: Payable under the Payment of Gratuity Act, 1972, after completion of 5 years of continuous service. Computed as: (15 ร— last drawn salary ร— years of service) รท 26.

(d) Professional Tax: Deducted as per state rules.

(e) Group Health Insurance: Coverage of โ‚น[AMOUNT] per annum for you [and your dependents].

9. Confidentiality and IP

You agree to maintain confidentiality of all proprietary information of the Company during and after your employment.

Intellectual Property: Any work, invention, or creation made during your employment using Company resources and related to the Company's business shall be the Company's property.

Work created outside of office hours, using your own resources, and unrelated to the Company's business shall remain your property.

Upon separation, you shall return all Company property (laptop, access cards, documents, data).

10. Non-Compete

During your employment, you agree not to engage in any business that directly competes with the Company.

Post-employment non-compete: NONE.

Note: Post-employment non-compete clauses are void under Section 27 of the Indian Contract Act, 1872. You are free to join any employer after separation.

Non-solicitation: For a period of [6-12] months after separation, you agree not to directly solicit the Company's clients or employees with whom you worked directly.

11. Termination

Either party may terminate this employment by:
(a) Serving the notice period specified in Section 5
(b) Paying salary in lieu of notice

The Company may terminate employment without notice in cases of:
(a) Gross misconduct or fraud
(b) Material breach of Company policies
(c) Conviction for a criminal offence

In such cases, the employee shall be given a written show-cause notice and a reasonable opportunity to respond (minimum 7 days) before termination.

Final Settlement: The Company shall process full and final settlement (including unused leave encashment, pending reimbursements, and any bonus) within 30 days of the last working day.

12. Dispute Resolution

Any dispute arising from this employment shall be resolved as follows:
(a) First, through the Company's internal grievance mechanism
(b) If unresolved within 30 days, through the Labour Commissioner's office
(c) If still unresolved, through the Labour Court or appropriate judicial forum

The courts at [CITY], India shall have jurisdiction.

Governing Law: This offer and your employment shall be governed by the laws of India and the applicable state laws.

13. Acceptance

This offer is valid until [ACCEPTANCE DEADLINE โ€” e.g., 7 days from the date of this letter].

To accept this offer, please sign and return a copy of this letter.

By signing below, you confirm that:
(a) You have read and understood all terms
(b) You are not bound by any agreement that would prevent you from joining
(c) All information provided by you during the hiring process is true and accurate


ACCEPTED AND AGREED:


Employee: _______________          For [COMPANY NAME]:
Name: [CANDIDATE NAME]            Name: [HR/MANAGER NAME]
Signature: __________              Designation: [TITLE]
Date: _______________              Signature: __________
                                   Date: _______________

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