How to create offer letters for employees in India [2025]: format and examples
When you hire an employee in India, one of the first things you'll do is send an employment offer letter.
As one of the first documents establishing a business relationship between you and your prospective employee, it’s crucial to get the offer letter right. While not always a legally binding document in India, the offer letter lays the foundation for an employment agreement while making the job and work conditions clear to the potential employee. This offer of employment will also help keep you compliant with labor laws in India so you can avoid costly legal disputes and penalties.
Here’s everything you need to send a legally compliant offer letter to hire a full-time employee in India before starting the onboarding process.
What is an offer letter?
A job offer letter is a formal invitation from an employer to an applicant accepted for a position, outlining the terms and conditions of proposed employment. It typically includes details such as the job description, start date, and benefits.
By signing the offer letter, the candidate confirms in writing that they accept the job offer and that they’re ready to start working on a selected date, under conditions specified in the document.
Offer letters must comply with relevant labor employment laws in India.
India job offer letter checklist: what should an offer letter contain?
While the exact offer letter format may differ across companies and industries, every job offer letter should contain the following for employees in India:
- Position at company (job title), job description, start date, and probationary period. You should explain that an employee’s suitability for the job will be evaluated during their probationary period. In India, probationary periods vary among roles and industries, but typically last from one month to one year.
- Worker classification information. Establish whether the new hire will be an employee or contractor.
- Working hours. Outline the expected working hours and any overtime policies that the employee will be subject to. In India, the maximum working week is 48 hours, with no more than nine hours a day. While overtime rates vary for private sector employees, factory workers are entitled to double their regular pay rate for additional hours. For more on working hours and overtime, read our guide to hiring in India.
- Compensations and benefits:
- Salary. Specify the employee's salary or hourly compensation in INR, as well as any other compensation they may receive (equity compensation, bonuses, incentive pay, etc.). Specify that the employee’s salary will be paid monthly, per India’s standard.
- Equity. If applicable, specify any equity compensation they will receive. The most common types of equity compensation for employees in India are stock options, restricted stock units (RSUs), and Employee Stock Purchase Plans (ESPPs).
- Benefits. Benefits could be outlined in the offer letter, but be sure to address them in general terms so that if they change in the future, an amendment to the offer letter isn't required. In India, the following benefits are mandatory for full-time employees (though not always listed in an offer letter): employee pension scheme contributions, employee provident fund, vacation entitlements, statutory holidays, sick leave, and maternity leave.
- Vacation. The employment contract should include details about your company's vacation leave policy, especially if you offer more time off than the typical 15 days of “earned leave” for private sector employees (the exact minimums in India vary between states). To learn more about leave and statutory holidays in India, read our guide to hiring in India.
- Termination policy. Clearly explain the terms of termination, including the notice that will be provided, and any conditions that may lead to termination. Note that there are limited reasons an employee can be terminated involuntarily in India, and at-will employment does not exist. The notice period required by law can vary between states, but employers have to provide at least one month.
- Confidentiality and non-disclosure. Include in the offer of employment a clause outlining the employee's responsibilities regarding confidentiality and non-disclosure of the company's information. Non-disclosure agreements (NDAs) are considered legally binding in India, though they should be stamped and registered to ensure enforceability.
- Contact information and phone number.
- Other key details. If there are any other key details relevant to your company's policies and procedures, include them in the offer letter. For example:
- If the offer is contingent on any conditions—like satisfactory results from a routine background check, signing company policies documents, or proof of eligibility to legally work in India—then list these out.
- Request that the employee signs and returns the offer letter to confirm their acceptance of the job before their start date, or include an expiration date for the offer letter that serves as a deadline for signature.
- Non-compete and non-solicit agreements. Include provisions outlining the employee’s non-competition and non-solicitation responsibilities after leaving your company—but only if they’re reasonable for your employee. Be warned: not all non-compete agreements are legally enforceable in Indian courts, especially if it impedes the employee after they’ve been terminated.
- Personal data collection. Include information about how you will collect, use, store, and process personal employee information.
- Intellectual property. Convey the expectations for the intellectual property ownership of any improvements, inventions, discoveries, and other modifications to work products by the employee on company time.
- Workplace health and safety. Include information about how you will ensure a safe, hazard-free work environment for your employee.
- Location. Establish expectations for in-office or remote work, if applicable.
Three India job offer letter examples and template
Below are sample job offer letter templates for three different positions.
Standard offer letter template
“Subject: Job Offer at [Company Name]
Dear [Candidate’s Name],
We are excited to offer you the position of [Job Title] at [Company Name].
Your primary work location will be [Work Location], and you will report to [Manager’s Name], [Manager’s Title].
Position Details:
Start Date: [Start Date]
Salary: [Annual or Hourly Wage] payable [frequency of payment, e.g., bi-weekly]
Benefits: [Briefly outline benefits and perks]
Work Schedule: [Full-Time/Part-Time; any specific work hours or expectations]
Termination Policy: [Details]
Confidentiality and non-disclosure: [Details]
To confirm your acceptance, please sign and return this letter by [Offer Expiry Date]. Further onboarding details will be shared upon confirmation.
We look forward to welcoming you to our team!
Sincerely,
[Sender’s Name]
[Designation], [Company Name]”
Part-time offer letter format template
“Subject: Part-time Job Offer at [Company Name]
Hi [Candidate Name],
We're excited to offer you the position of [Job Title] at [Company Name]! We believe you'll be a great addition to the team.
Job Details:
- Start Date: [Start Date]
- Work type: On-site, at [Company Address]
- Working Hours: [X] hours per week, with [X-hour] shifts on [Days of the Week]
- Schedule: To be arranged with your manager, [Manager's Name]
- Compensation: [Hourly Rate/Salary], paid [bi-weekly/monthly]
- Termination Policy: [Details]
- Confidentiality and non-disclosure: [Details]
You’ll be reporting to [Manager's Name], and we’re confident that you’ll bring a fresh perspective to the team.
Please review the offer, and let us know if everything looks good! To accept, just sign and return this letter by [Response Date].
We can’t wait to have you on board!
Best,
[Sender’s Name]
[Sender’s Title]
[Company Name]
[Date]”
Internship offer letter format template
“Subject: Internship Offer at [University/Organization Name]
Dear [Candidate Name],
We are pleased to offer you an internship opportunity with [University/Organization Name] in the [Department/Team Name].
Your internship will be based at our [Location] and will provide valuable experience in [Field/Industry].
Details:
- Position: Intern – [Specific Role or Area]
- Duration: [Start Date] to [End Date]
- Working Hours: [X hours per week], [specific days/times, e.g., Monday to Friday, 9 AM - 3 PM]
- Compensation: [Paid/Unpaid; if paid, specify stipend/salary amount]
- Supervisor: You will report to [Supervisor's Name, Job Title]
This internship will give you the opportunity to apply your academic knowledge to real-world projects and gain hands-on experience in [Key Responsibilities, e.g., research, data analysis, project management].
Please confirm your acceptance by signing and returning this letter by [Response Date]. We look forward to working with you and supporting your professional growth during this internship.
Sincerely,
[Sender’s Name]
[Sender’s Title]
[University/Organization Name]
[University/Organization Address, City, State, ZIP Code]
[Date]
[Contact Information]”
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FAQs about India offer letter format
Are offer letters legally binding in India?
Offer letters are typically not considered legally binding in India. While they outline proposed terms of employment, India’s authorities usually require a formal employment contract to establish a legally enforceable agreement between the employer and employee.
How do I mention the notice period in an offer letter template?
The notice period is usually outlined in the termination policy section of an offer letter. You should clearly outline the notice period duration, expectations, and conditions that apply.
How long is an offer letter valid?
An offer letter in India is valid for the time frame specified in the document. If the candidate doesn’t respond, it is typically considered that they’ve declined the offer.
This blog is based on information available to Rippling as of December 13, 2024.
Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.