In the process of hiring, an organization sends numerous documents to its new joiner. Among all the corresponding documents, offer letter and appointment letter are considered the most important ones. While many are not aware of the basic differences between both the letters, others consider an offer letter and appointment letter as the same.
In simpler words, an offer letter offers a position to an applicant with detailed information about the job profile and organization. And an appointment letter format is nowhere near to an offer letter as it includes a few additional details about the job and the position.
Keep reading to get a clearer picture of the differences between the offer letter and appointment letter.
Before getting into the differences, let us have a quick look at their definitions:
- Offer Letter
Every selected applicant eagerly waits for an offer letter like a kid waits for his mother to return with a chocolate.
An offer letter is a document sent by an employer to make a formal statement about the job offer to a prospect.
This letter is basically the second step after the interview (which is of course the very first step). It includes every superficial information including the job profile, location of the company as well as the salary.
Every organization follows different offer letter formats, however, the three aspects that must be included in an offer letter are-
- The joining date and time
- Position & salary
- Detailed information about the benefits
Most organizations give a deadline to the candidate to respond to the offer letter. And if he/she fails to respond before that deadline, the organization extends the letter to another candidate in the pipeline.
- Appointment Letter
The employer gives an appointment letter only after the candidate accepts the offer letter.
An appointment letter normally includes some detailed information such as the location and date where he/she has to show up, work schedule and the final salary discussed (if the candidate negotiated it before accepting the offer letter).
Not all organizations issue an appointment letter. An appointment letter is considered more formal than an offer letter. There are various ways to write an appointment letter as different companies follow different appointment letter format.
In addition to this, appointment letters are used as proof or a contract of employment for various purposes such as a loan application as well.
Basic Difference between Offer Letter and Appointment Letter
Although the offer letter and appointment letter plays a vital part in the recruitment process, there is a very thin line of difference between both the documents.
While an offer letter is provided when the organization finds that the applicant is suitable for the position, an appointment letter is sent once the candidate accepts the offer letter. When the candidate clears all rounds of interviews, the organization provides an official letter that is termed as an offer letter. The offer letter mainly includes date & time of joining, the position offered and salary package. It is completely up to the candidate if he/she wants to accept the offer or not.
Now talking about an appointment letter, it is the second process after sending an offer letter. As mentioned earlier, an appointment letter is provided only when the candidate accepts his/her offer letter as well as submit all the required documents. An appointment letter format includes certain terms and conditions that guarantee a particular job to the employee.
Now, that you know the basic differences between both the documents, from this moment remember all the above-discussed points while drafting an offer letter and an appointment letter for a new employee.