An offer letter is the initial job offer issued after selection but before joining. It proposes the role, CTC and joining date, and it’s conditional, typically contingent on background verification and document checks clearing, not the final binding employment contract.

Offer letter vs. appointment letter, an India-specific distinction

In much of the US and UK, an offer letter is often the only document issued and is treated as binding once accepted. Indian practice is different: the offer letter is provisional, and the appointment letter issued at or around joining is the actual, comprehensive employment contract that supersedes it. One practical consequence worth knowing: many Indian employers accept just an offer letter as sufficient proof to let a candidate resign from their current job, even though that candidate isn’t legally considered an employee of the new company until the appointment letter is issued.

Frequently asked questions

Can an offer letter be withdrawn after it’s accepted?

Yes, since it’s conditional, most commonly on background verification. A clean BGV result is generally what converts the offer into an actual joining.

What typically happens between accepting the offer and joining?

Background verification and document collection, alongside pre-boarding activity to keep the candidate engaged before day one.

Does accepting an offer letter create a binding contract?

Not in the same way the appointment letter does. Treat the offer letter as a strong commitment from both sides, not yet the final legal employment terms.

Track how many offers actually convert with the offer acceptance rate, and what happens when they don’t with offer decline.