Offer Letter vs. Appointment Letter — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Published on November 7, 2023
An offer letter proposes terms for a potential job, while an appointment letter confirms the employment and outlines official job details.
Difference Between Offer Letter and Appointment Letter
Table of Contents
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Key Differences
An offer letter is primarily an official document extended by an employer to a prospective employee, outlining the primary terms and conditions of employment. It serves as a formal invitation for the candidate to join the organization under specified terms. On the other hand, an appointment letter is given after the candidate accepts the offer letter, and it confirms the candidate's position within the organization. This document provides comprehensive details about the job, including duties, responsibilities, and other essential terms of employment.
While an offer letter is subject to acceptance or rejection by the prospective employee, an appointment letter is an affirmation of the employee's position. In essence, the offer letter begins the formal hiring process, and the appointment letter concludes it by integrating the employee into the organization.
Comparison Chart
Purpose
Proposes terms for potential employment.
Confirms the employment and outlines job details.
Status
Preliminary; subject to acceptance or rejection.
Final; confirms the position of the employee.
Content
Basic terms of employment like position, salary, start date.
Detailed terms, job duties, reporting relationships, and benefits.
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Issued
After selection, before joining.
After acceptance of the offer, before or during joining.
Binding Nature
Not legally binding until accepted.
Legally binding with terms and conditions of employment.
Compare with Definitions
Offer Letter
The initial step in the formal hiring process by an employer.
The HR department sent out offer letters to five selected candidates after the final interview round.
Appointment Letter
The final step in the formal hiring process that integrates the employee into the organization.
With her appointment letter in hand, Karen completed her joining formalities.
Offer Letter
A document outlining the basic terms of employment like position, salary, and start date.
The offer letter stated that Mark would begin his role as a manager from the 1st of next month.
Appointment Letter
A detailed letter specifying job responsibilities, terms, and benefits.
The appointment letter clarified that Emily would be reporting to the department head.
Offer Letter
An invitation for a candidate to join an organization under specified terms.
The offer letter from the tech company was too enticing for Lisa to decline.
Appointment Letter
A conclusive affirmation of employment after the acceptance of an offer letter.
After a week of negotiations, Peter finally got his appointment letter.
Offer Letter
A preliminary letter subject to acceptance or rejection by the candidate.
Before accepting the offer letter, Sam decided to negotiate his starting salary.
Appointment Letter
An official document confirming an individual's position within an organization.
Upon receiving his appointment letter, Alex was thrilled to start his new journey.
Offer Letter
A formal proposal from an employer to a prospective employee detailing preliminary job terms.
Upon receiving the offer letter, Jane had to decide whether the terms matched her expectations.
Appointment Letter
A legally binding document between the employer and the employee.
The appointment letter mentioned that any breach of contract would lead to legal consequences.
Common Curiosities
Is the offer letter legally binding?
No, the offer letter is not legally binding until it's accepted by the candidate.
Is it possible to receive an appointment letter without an offer letter?
It's uncommon, but some organizations may combine both into one document.
Which letter marks the official start of employment?
The appointment letter marks the official start of employment.
Which letter is more detailed in nature?
The appointment letter is more detailed, outlining specific job duties, benefits, and other terms.
Can terms in the offer letter differ from the appointment letter?
Ideally, they shouldn't, but if there are negotiations post-offer, the appointment letter will contain the final agreed-upon terms.
Can an employer retract an offer letter?
Yes, offer letters can be retracted, but it's a good practice to inform the candidate with a reason.
Does an appointment letter always follow an offer letter?
Typically, yes. Once an offer letter is accepted, the appointment letter is issued.
Can a candidate negotiate terms after receiving the appointment letter?
Negotiations typically occur after the offer letter and before the appointment letter is issued.
Is the probation period mentioned in the offer or appointment letter?
It's typically mentioned in the appointment letter.
Is the duration of employment mentioned in the appointment letter?
Yes, especially if it's a contract-based job.
Do both letters mention salary details?
Generally, both will mention salary, but the appointment letter may provide more detailed breakdowns.
Which letter indicates the official confirmation of a job?
The appointment letter indicates the official confirmation.
Do both letters need to be signed?
Typically, the candidate signs the offer letter to accept the terms and both parties sign the appointment letter.
Can an offer letter have a validity period?
Yes, employers might set a deadline by which the offer needs to be accepted or declined.
Which letter is essential for internal HR processes?
The appointment letter is essential as it confirms employment.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
