Guidelines for Issuing an Appointment Letter
1) Name of the employee with full address – the employee should provide present and permanent address. The appointment letter will have to be sent to the present address and it can be through mail, courier, or email.
2) Designation and job description – the appointment letter will indicate the present designation and it will also explain all the duties and responsibilities involved in full detail, so that the company can take necessary action in case of any breach by the employee in the discharge of such duties and responsibilities.
3) Pay scales, allowances, and deductions – the basic salary and all types of allowances allowed for the employee, with any future pay scale should be spelled out clearly in the appointment letter. Further, any deductions towards certain allowances and tax deductions at source should also be explained in the letter. The letter should also include compensation of the employee if there is any suspension period.
4) Working conditions – the appointment letter should mention the working hours, working days, weekly holidays, other holidays, and leave policies, so that the employee understands the working conditions and accepts them wholeheartedly.
5) Probation, confirmation, promotion, transfer, and retirement – the appointment letter should specify the period of probation, the process of confirmation, rules of promotion and transfer, and retirement policies covering all legal details, so that the company has complete legal protection against any possible lawsuit by the employee.
6) Confidential information – the appointment letter should contain clauses that emphatically state that the employee should not disclose or divulge the affairs, transactions, or other information pertaining to the company to third parties and consequences for indulging in such activities.
7) Resignation and termination – the appointment letter should specify the terms under which the employee can resign and the rights of the company regarding termination of the services of the employee. The company should also warn the employee about automatic termination with or without any monetary compensation under certain circumstances, such as illegal activities, long absence without notice, etc.
8) Periodic medical examination – if the company has a policy of subjecting its employees to regular medical examination, the appointment letter should have a clause about this so that the person being appointed can decide whether to accept such a condition or not.
9) Accommodation – the appointment letter should indicate whether the company will provide accommodation to the employee and the terms of such accommodation, such as rent, single or family accommodation, rules of vacation of the accommodation, etc.
10) Other terms and conditions – the appointment letter can impose specific clauses about double employment by the employee, the discharge of duties and responsibilities, and consequences for breach of the terms and conditions as well as stated company policies.
11) Acceptance by employee – the employee should be asked to sign a copy of the appointment letter accepting the terms and conditions and return it either before a specific date or at the time of reporting for duty.