The appointment letter clause that decides your exit disputes
The document confirming employment and setting out its terms — including the notice clause that causes most exit disputes.
What It Records
Designation, joining date, place of work, remuneration, probation, notice period and the policies that apply.
Not The Offer Letter
An offer precedes acceptance. Many employers combine both, which works if it is clear when terms take effect.
Basic Or Gross
Whether notice recovery runs on basic or on gross is the single most disputed clause. Say which.
An appointment letter confirms employment and records its terms: designation, date of joining, place of work, remuneration, probation, notice period, and the policies the employee is subject to.
It is distinct from an offer letter, which precedes acceptance. Many employers issue one document serving both purposes, which is perfectly workable provided it is clear when the terms take effect.
The clauses that matter most are the ones nobody reads until there is a dispute.
Notice period — and specifically whether recovery for shortfall is computed on basic or on gross — is the single most common source of exit disagreements. Where the letter says basic and the company recovers on gross, the employee is right, and the argument is usually lost before it starts.
Place of work matters if transfers are contemplated. A letter naming one city without a transfer clause makes relocation a variation of contract rather than a management decision.
Probation should state what confirmation actually requires. Probation that ends by silence rather than by a confirmation letter creates ambiguity about status at exactly the point where clarity is useful.
And the remuneration figure should say plainly whether it is gross or cost to company. A candidate who reads a CTC figure as take-home is not being unreasonable — those numbers are routinely presented as though they were interchangeable.
Appointment Letter FAQs
Is an appointment letter legally required?
Several state Shops and Establishments Acts and the labour codes contemplate written particulars of employment. Beyond compliance, a written letter is your only record of the agreed terms.
Can terms be changed later?
Not unilaterally, as a rule. Material changes to agreed terms generally require the employee's consent, which is why transfer and variation clauses are worth including at the outset.
Should notice recovery be on basic or gross?
Either is defensible — but the letter must say which, and payroll must apply what the letter says. The dispute is almost always about the mismatch, not the basis.
What must an appointment letter contain?
Enough to answer the questions that later become disputes: role, start date, pay structure, probation, notice on both sides, and place of work. Vagueness is resolved against the drafter.
Can we change terms after issuing it?
Not unilaterally. A change to agreed terms needs agreement, and a revised letter accepted by the employee — an announcement is not the same thing.
Is an offer letter the same as an appointment letter?
No. An offer precedes acceptance; the appointment letter governs the employment. Treating the offer as the contract leaves you relying on a document that was never meant to carry that weight.
Stop working this out by hand
Klok applies these rules on every payroll run, from your own attendance and salary data, with the working shown.