Since the four Labour Codes came into force on 21 November 2025, issuing a written appointment letter isn't optional anymore. Section 6 of the Occupational Safety, Health and Working Conditions Code, 2020 requires every employer, of any size, to issue one to every worker, permanent, fixed-term, or contract. A bare letter that states designation and salary is technically compliant, but it leaves out exactly the clauses that decide a dispute: notice period, IP assignment, confidentiality, and termination for cause. LegalDev drafts appointment letters that satisfy the statutory duty and cover the terms that actually protect your business, with the salary structure built to meet the Code on Wages' 50% basic-pay rule.
Before 21 November 2025, whether an employer had to issue a written appointment letter depended mostly on the state Shops and Establishments Act. Now it's a central statutory duty. Employers who had staff on the rolls without one were required to issue letters within three months of the Codes commencing. Two changes affect every appointment letter drafted from here on:
An appointment letter drafted on an old template, with basic pay at 30 to 40% of CTC, is no longer compliant even if every other clause is correct.
Employee-side verification documents, identity proof, educational certificates, prior experience letters, and address proof, are collected separately during onboarding and don't need to be shared with us to draft the letter itself.
A free generator fills in fields. It won't tell you that your basic pay is below the 50% line, that your non-compete clause is void the moment an employee leaves, or that a fixed-term hire is now entitled to the same statutory benefits as a permanent employee, pro-rated. LegalDev's team reviews the letter against the current labour codes and your state's Shops and Establishments Act before it goes out, and builds the salary structure so it holds up under a PF audit or an inspection, not just at signing.
Related services: Employment agreement / offer letter drafting, Non-Disclosure Agreement (NDA) drafting, HR policy and code of conduct drafting, and PF and ESI registration.
Yes. Since the four Labour Codes came into force on 21 November 2025, Section 6 of the Occupational Safety, Health and Working Conditions Code, 2020 requires every employer to issue a written appointment letter to every worker, permanent, fixed-term, or contract, regardless of company size.
An offer letter goes out before joining and proposes the role and compensation, conditional on the candidate's acceptance. An appointment letter is issued on or after the joining date and is the full employment record, including salary structure, statutory benefits, and the clauses that govern the relationship going forward. Many Indian companies combine the two into one document, but the codes treat the appointment letter as the binding record.
Under the Code on Wages, 2019, basic pay plus dearness allowance must together equal at least 50% of total remuneration. If allowances like HRA push basic pay below that line, the excess is treated as wages anyway for the purpose of calculating PF, gratuity, and bonus. The appointment letter's salary annexure needs to reflect this split, not the older 30 to 40% basic-pay structure many templates still use.
A clause restricting the employee from competing during employment is generally enforceable. A clause trying to restrict them after they leave is void under Section 27 of the Indian Contract Act, 1872, which bars agreements in restraint of trade. Confidentiality obligations that survive termination, and a narrow non-solicitation clause covering clients or staff, do the protective work instead.
No. Offer and appointment letters are treated as employment contracts under the Indian Contract Act, 1872, and are not listed in any state's stamp duty schedule.
Yes. Electronic signatures, including Aadhaar e-sign, are recognised under Section 3A of the Information Technology Act, 2000, provided the acceptance is captured and retained as an audit trail.