Difference between Offer Letter and Appointment Letter

Key Difference:  An offer letter and an appointment letter, both are important documents in the process of recruitment. If the candidate is found to be suitable for the company, an offer letter is provided to the candidate. It mentions the details like position and salary offered by the company. On the other hand, an appointment letter is provided after the offer has been accepted by the candidate. It is a document that guarantees the job of the candidate at defined terms and conditions mentioned in the appointment letter.

Offer letter and appointment letter, both are part of the recruitment cycle. A company hires new employees and this process includes a series of tasks for the recruitment cycle. The offer letter and appointment letter are two important letters in the context to final stages of recruitment.

If a candidate successfully clears all rounds of interviews and satisfies the criteria determined for a potential candidate, then he is regarded as a suitable candidate for the company. Now, as he has cleared all the necessary rounds and proved his suitability, the company officially provides him a letter, and this letter is known as the offer letter. As it is named, an offer letter is an offer that is made on the behalf of the company to the candidate. The offer letter contains all the necessary details related to the job that the company is offering to this candidate.

It generally includes:

  1. Date of joining
  2. Salary package
  3. Position offered

It may also include details like various medical plans or benefits that the company is offering. In addition to this, an offer letter usually asks the candidate to submit the necessary documents and certified copies. Now, it is up to the candidate to accept the offer or can ask for certain negotiations if possible. In few situations, a candidate may also reject the offer, if it does not meet his expectations.

On the other hand, an appointment letter indicates the next step after the offer letter. If the candidate is happy with the offer, and all the documents provided by the candidate are successfully verified then the company finally issues an appointment letter. This letter can be described as a guarantee from the company that the company is now hiring the candidate. In this letter, similar information like offer letter is furnished and if some negotiations or changes have taken place then the agreed new terms are also mentioned in this letter.

The main difference between them is that an appointment letter is always preceded by an offer letter. The offer letter is just a description of the offer that is made by the company, whereas appointment letter is the proof that company has finally hired the candidate.

Image Courtesy: lonelyreload.com, stepbystep.com

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