When preparing a job offer letter for a work-from-home employee in India, you must ensure legal compliance, communicate clearly, and apply the EOR model effectively. This article is for the purpose of writing how to draft and send those job offer letters to those remote EOR employees of India.
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Table of Contents
- What is a Job Offer Letter in India?
- Job Offer Letter and an Employment Contract in India
- Offer Letter Legally Binding in India
- Offer Letter and Onboarding Flow
- When Must a Job Offer Letter Be Given?
- Salary Needs to Be Mentioned in an Offer Letter
- Compliance Requirements for Offer Letters in India
- Job Offer Letter Checklist for India
- Benefits of Sending Offer Letters Through an EOR in India
- Your Trusted EOR Partner in India
- Job Offer Letter Template for India
- FAQs
What is a Job Offer Letter in India?
A job offer letter in India is a formal document provided by an employer (or an EOR on behalf of the employer) confirming an employee’s role, salary, start date, and terms of employment.
- Legal recognition: While not a substitute for an employment contract, it sets the stage for binding agreements.
- Employer of Record (EOR): When hiring through an EOR, the offer letter comes directly from the EOR partner, ensuring compliance with Indian laws.
The EOR assumes all legal employer responsibility of the remote worker; these duties include handling the payroll, tax compliance, and the associated employment law responsibilities. Companies will thus be able to source Indian talent without needing a local presence.
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What is the Difference Between a Job Offer Letter and an Employment Contract in India?
While often used interchangeably, they are distinct:
- Job Offer Letter: Summarizes key employment terms and acts as a conditional promise of employment.
- Employment Contract: A legally enforceable document under Indian labor law that includes detailed rights, obligations, and compliance clauses.
Global employers must ensure both documents align when working through an EOR in India.
| Criteria | Offer Letter | Employment Letter |
| Definition | A formal document stating the terms of employment offered to a candidate. | A formal document confirming the terms of employment after acceptance of the offer. |
| Stage of Hiring | Issued before the candidate joins the company. | Issued after the candidate has accepted the offer and completed onboarding. |
| Content | Job title, salary, benefits, start date, and terms. | Job title, duties, terms of employment, and details about the employment relationship. |
| Purpose | To formally invite the candidate to accept the job. | To confirm the candidate’s employment officially. |
| Legal Standing | Generally, not a legally binding document. | Often considered a legally binding document outlining employment terms. |
| Acceptance Required | Requires acceptance from the candidate (often by signing). | No further acceptance required; it is a confirmation of the employment agreement. |
| Onboarding Information | Typically does not include detailed onboarding information. | May include details on job expectations, company policies, and reporting structure. |
| Duration | Usually includes a probation period. | May outline tenure or conditions for ongoing employment. |
Is an Offer Letter Legally Binding in India?
An offer letter in India is generally considered a letter of intent rather than a fully binding employment contract. It confirms the employer’s intent to hire and the candidate’s acceptance of key terms like job role, salary, and start date.
However, once an employee accepts the offer and joins, the offer letter gains enforceability in terms of agreed conditions. For long-term compliance and legal protection, a detailed employment contract issued by the Employer of Record (EOR) in India follows the offer letter to outline statutory benefits, termination rules, and labor law compliance.
What is the Job Offer Letter and Onboarding Flow for a Remote EOR Employee in India?
Prior to drafting a job offer letter, understand how the Employer of Record in India works. The EOR will take care of all legal employment issues and you can focus on the work and performance of the employee.
- Drafting the Job Offer Letter:
- Header Information: Your company name and address, date, and address the candidate by his or her name.
- Position Details: Write the job title, department, and manager's name.
- Compensation Package: Describe salary, frequency of pay (monthly/bi-weekly), bonus structure, and any equity offerings.
- Type of Employment: Specify if it is full-time, part-time, or contract work.
- Benefits and Perks: Describe health insurance, leave policies, and any other benefits or perks.
- Start Date: List proposed start date, contingencies such as background checks, etc.
- Acceptance Instructions: Clearly spell out acceptance instructions, signatures required and return deadlines.
- Legal Compliance:
- Ensure strict compliance with Indian labor laws and regulations for remote workers.
- Consider tax implications and other legal requirements tied to remote employment.
- Seek local legal counsel to verify compliance and avoid risks.
- Integration in onboarding processes
- Send offer letter & onboarding tasks – Include document collection, training schedule, and IT setup via an onboarding tool.
- Onboarding checklist – Prepare tasks after offer acceptance to ensure a smooth transition.
- Assign responsibilities – Clearly allocate tasks to HR, managers, and IT.
- Feedback loop – Collect feedback from new hires to improve the onboarding process.
In the context of remote Employment Outsourcing hiring, understanding these distinctions is vital. The offer letter can help clarify the job offer made to potential employees across borders, ensuring compliance with local job market expectations. The employment letter solidifies the legal framework under which the employee will operate, particularly important in cross-border employment scenarios where local labor laws may differ.
Suggested Read: Remote Employees Onboarding Checklist with EOR in India
When must a job offer letter be given?
Issue the offer letter immediately after the final interview once the candidate is selected. This demonstrates efficiency and respect for the candidate’s time. In the context of hiring in India, the offer should also clearly state the number of days the candidate has to accept it - typically between 3 to 7 days. Doing so ensures a faster hiring process and helps secure top talent before competitors do.
- Clear Communication – State all terms, conditions, and benefits clearly to avoid miscommunication.
- Professional Tone – Keep the tone professional and aligned with company culture.
- Contact Information – Provide a point of contact for candidate queries.
- Follow-Up – Follow up with a call or email after sharing the offer to reassure the candidate and support their decision-making.
What salary needs to be mentioned in an offer letter?
If someone is preparing to draft an offer letter in India, it is prudent to clearly mention the salary and corresponding compensation details. Proper salary calculation should be highlighted to ensure transparency and compliance. Here are a few guidelines:
- Clearly mention the salary and compensation details in the offer letter.
- Highlight the salary calculation process, including how gross and net pay are derived.
- Break down components such as basic pay, allowances, bonuses, and deductions (PF, tax, ESI).
- Ensure compliance with Indian labor laws regarding wages and benefits.
- Specify that payslips will be provided regularly for transparency and record-keeping.
If an employer follows these guidelines and best practices, they can effectively communicate a job offer and make for a good onboarding experience for new hires in India.
Compliance Requirements for Offer Letters in India
- Must comply with state-specific Shops and Establishments Acts.
- Salary breakup should follow Income Tax Act and PF/ESI mandates.
- Include probation and confirmation clauses.
- Respect anti-discrimination provisions under Indian Constitution and labor codes.
Suggested Read: Hire Remote Team in India: Step-by-Step Hiring Guide (2025)
Job Offer Letter Checklist for India
Writing an effective job offer letter is indispensable to any hiring firm and the applicant in India. It is not just that it establishes expectations but it also complies with Indian labor laws. Here's an exhaustive checklist of the absolute inclusions of a job offer letter:
| Checklist Item | Details | Notes |
|---|---|---|
| Job Title | Clearly state the role offered. | Avoid ambiguity (e.g., “Software Developer”). |
| Date of Commencement | Mention the joining date. | Ensure alignment with schedules. |
| Remuneration | Salary breakdown: basic, allowances, bonuses. | Include currency, frequency, and compliance with PF/ESI. |
| Benefits | Health insurance, retirement plans, PTO, gratuity, provident fund. | Add perks like WFH or travel allowance. |
| Working Hours | Weekly hours and overtime rules. | Keep consistent with labor laws. |
| Type of Employment | Permanent, contract, or temporary. | Clearly define in agreement. |
| Probation Period | Duration and conditions. | Example: “3 months probation.” |
| Confidentiality & NDA | Protect sensitive data and IP. | Essential for data-heavy roles. |
| Termination Clause | Grounds and notice period. | Must comply with Indian labor laws. |
| Compliance | Adhere to Payment of Wages Act, Minimum Wages Act, Industrial Disputes Act, etc. | Include gratuity, PF, and state-specific laws. |
| Anti-Discrimination | Ensure fair employment practices. | Confirm inclusivity and equal opportunity. |
Ensure that the payment is in accordance with the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Industrial Disputes Act, 1947, and all other state-specific laws. Include mandatory details such as gratuity, provident fund contributions, and any other statutory benefits. Also be aware of anti-discrimination laws and fair employment practices.
Benefits of Sending Offer Letters Through an EOR in India
- Speed: Faster drafting and issuance with ready-made templates.
- Compliance: Automated alignment with Indian statutory rules.
- Scalability: Easy to onboard multiple employees across Indian states.
- Legal Shield: Employer of Record assumes liability.
Asanify: Your Trusted EOR Partner in India
Asanify simplifies global hiring in India by managing the entire employee lifecycle from compliant job offer letters to payroll and benefits.
- Drafts and sends offer letters in line with Indian labor codes.
- Manages statutory compliance: PF, ESI, gratuity, and taxation.
- Provides customizable templates to reflect your company culture.
- Ensures smooth transition from offer letter to employment contract.
Free Download: Job Offer Letter Template for India (EOR Version)
To make the process easier, we’ve prepared a ready-to-use Job Offer Letter Template for India tailored for remote EOR employees. This template covers essential elements such as salary structure, benefits, probation period, and compliance clauses required under Indian labor laws.
📄 Download the Job Offer Letter Template for India (PDF)
How to use this template:
- Customize with employee name, role, and compensation.
- Ensure the benefits and statutory deductions align with the EOR’s compliance framework.
- Share with the employee digitally via your EOR platform for faster acceptance.
This saves time and ensures that your job offers remain legally compliant and professionally structured when hiring remote employees in India.
FAQs
Resend the offer letter if it was not acknowledged or required corrections, and inform the candidate when you do so.
In India, the notice period ranges from 15 days to 3 months. This varies with the company's policy and the post held by him or her.
Include the information in the offer letter or provide it in a separate document for the candidate to review before accepting.
Yes, you can withdraw your offer letter in India as long as you do that based on your company guidelines and legal provisions.
You can withdraw an offer letter from a candidate by drafting a written letter to him stating all the valid reasons why you will not be providing him employment opportunity anymore and following it by whatever formal procedure is adopted according to your company regulations.
In India, an offer letter is usually seen as a preliminary document rather than a full legal contract. It shows the employer’s intention to hire and outlines key details such as role, salary, and joining date. For the job to become legally binding, a formal employment contract must be issued, which includes all rights, obligations, and statutory benefits under Indian labor laws.
When preparing an offer letter, the notice period terms should be spelled out in the section that covers separation or termination. Employers should specify the exact duration (e.g., 30, 60, or 90 days), clarify whether pay in lieu of notice is permitted, and highlight obligations of both parties during this period. This ensures transparency and prevents disputes at the time of exit.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
