
Section 44
Offer and appointment letter
Use it when you hire a new employee and need to put the job, pay and main terms in writing.
Know before you sign
- Under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, every employee is to be given an appointment letter in the prescribed format, with the employee's details, designation, category, wages and social security details (Press Information Bureau, November 2025). Check the format your state has prescribed.
- The wages you offer must not be below the minimum wage notified for that category of work in your state. Check the current notification with your state labour department.
- Provident Fund and ESI apply once your business crosses the employee limits under the law. Ask your accountant whether they apply to you, and register before you deduct anything.
- Do not add a clause that stops the employee from working anywhere in the same trade after leaving. Section 27 of the Indian Contract Act, 1872 makes an agreement in restraint of a lawful trade or business void to that extent. A confidentiality clause, as in clause 13, is the usual way to protect your business.
- Give the letter in a language the employee understands, keep a signed copy in the employee's file, and see a lawyer before ending anyone's employment on grounds of misconduct.