An offer letter is a formal document issued by an employer to a selected candidate, outlining the terms and conditions of employment before they join the organisation. It is the first official communication between a company and a new employee, confirming the job title, compensation, joining date, and key employment terms.
In India, offer letters are standard practice across all industries - from startups to large corporations. While not legally binding as an employment contract in all cases, an offer letter establishes mutual understanding between the employer and candidate and is typically followed by a formal appointment letter after the candidate joins.
A well-structured offer letter protects both parties - it gives the candidate clarity on compensation and role expectations, and gives the employer a record of the terms communicated before joining.