What Is a Letter of Appointment?
A letter of appointment is a formal document offered by an employer to a selected candidate, outlining the terms under which they will join the organization. It acts as the official confirmation that the candidate has been chosen, and states the key conditions under which their service begins.
Unlike a job offer or verbal agreement, the appointment letter becomes part of the employment record and provides legal assurance. It bridges the gap between the offer stage and full contractual employment.
Why It Matters
A clear appointment letter offers several benefits:
- Clarity & Transparency: It avoids confusion later by specifying role, compensation, start date, probation, and other terms.
- Legal Safeguard: Establishes certain terms in writing, which helps both parties in case of future disputes.
- Professionalism & Employer Branding: Sends a positive signal that the organization values process and clarity.
- Alignment: Ensures that both the employer and employee share the same understanding of expectations from the start.
Because this letter is often a precursor to more detailed contracts, its accuracy and completeness are important.
Key Elements to Include
Below is a breakdown of what a strong letter of appointment should contain:
- Letterhead / Company Details
The letter should open with organizational name, address, contact information, and any logo or branding if applicable. - Date
The date when the appointment letter is issued. - Recipient Information
The name, address, and contact details of the new hire. - Subject / Title
A concise subject like “Letter of Appointment as [Position]” which allows the reader immediately to identify its purpose. - Opening Salutation & Introduction
Begin with a formal greeting and a statement of delight in extending the appointment. E.g., “We are pleased to inform you …” - Position & Job Details
State the role, department, reporting line, work location, and whether employment is full-time, part-time, or contractual. - Start Date & Probation Period
Specify the date when employment begins, and any probation duration along with criteria for confirmation or termination during probation. - Compensation & Benefits
Outline salary, mode of payment, allowances, bonus or incentive structure, benefits such as medical insurance, retirement plans, etc. - Work Hours, Leave, & Other Conditions
Brief mention of working hours, leave entitlement, holidays, shift details, or flexibility arrangements as applicable. - Duties & Obligations
A summary of principal responsibilities or reference to a job description document. Also include expectations like confidentiality, intellectual property, and company policy compliance. - Termination or Notice Clause
Indicate the notice period required by either party, conditions under which employment may be terminated, and any severance or exit formalities. - Acceptance & Signature
Include a closing section where the candidate can sign to acknowledge acceptance of the terms, along with date. For example:
“If you accept the terms above, please sign below and return a copy to us.”
- Closing Statement
A cordial closing expressing welcome or anticipation of a productive association, followed by your name, designation, and signature.
Tone & Best Practices
- Professional but warm: While the letter must remain formal, a personal touch (e.g. “We trust you’ll make valuable contributions”) helps set a positive tone.
- Clear and unambiguous: Avoid vague phrases. If something is conditional (e.g. “subject to verification”), specify it.
- Avoid overly legalistic jargon (yet maintain precision). The goal is clarity for both parties.
- Refer to detailed contracts: If there’s a more expansive employment agreement or policy handbook, mention that the letter is subject to those documents.
- Proofread carefully: Errors in dates, amounts, or job titles can cause confusion or distrust.
- Retain records: Keep a copy in HR’s files and provide one to the employee.
Conclusion
A thoughtfully written letter of appointment establishes a solid foundation for the employment relationship. By clearly outlining terms, setting expectations, and expressing welcome, the document helps begin the professional journey on a transparent, respectful note. Tailor the template above to your organizational policies and ensure alignment with broader employment contracts and local labor regulations.