Last updated: 18 October 2026
Short answer: Yes, an appointment letter is now a legal requirement for establishments covered by the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code). Section 6(1)(f) requires every employer to issue a letter of appointment to every employee, in the form prescribed by the appropriate Government. The four Labour Codes came into force on 21 November 2025, and the Central Rules under them were notified in May 2026. The letter should at least state the designation, skill category, nature of employment, wages, date of joining, social security coverage and duties, and, for women employees, whether maternity benefit applies. For most private employers the State’s rules decide the exact form, so check your State’s labour department notification.
Why the appointment letter is now a statutory document
Before the Labour Codes, an appointment letter was mostly a matter of good practice and of State shops and establishments laws. The OSH Code changed that. Section 6(1)(f) makes it a duty of the employer to issue a letter of appointment to every employee on appointment. Employees who were already in service when the Code began were to be given such letters within three months of commencement, that is, by about 20 February 2026. If you have not done this, issue the letters now.
The Code applies to “establishments” as defined in it, which broadly means places where ten or more workers are employed in any industry, trade, business, manufacturing or occupation, and to factories, mines, docks and similar workplaces. Even a small office outside the definition should issue a written letter: it is the first document a labour authority, court or auditor will ask for.
Central or State rules?
Labour is in the Concurrent List. The Central Rules (for example, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, notified on 8 May 2026) apply only where the Central Government is the “appropriate Government”: railways, mines, banks, insurance companies, major ports, Central public sector undertakings and similar. For most private employers the State Government is the appropriate Government, so the State rules fix the form of the appointment letter, registers and returns. Several States notified their rules during 2026, but the position differs from State to State. Where a State rule is not yet in place, the transition arrangements announced by the Central Government allow the older State rules to continue on that point.
What the appointment letter must contain
Published summaries of the OSH (Central) Rules, 2026 list these particulars for the prescribed appointment letter. Treat them as the minimum and add anything your State form asks for.
| Particular | What to write |
|---|---|
| Name and designation | Employee’s full name, father’s or spouse’s name, designation |
| Skill category | Unskilled, semi-skilled, skilled or highly skilled, matching the minimum wage category |
| Nature of employment | Regular (permanent), fixed-term with end date, or other |
| Wages | Basic pay and each allowance separately, wage period and mode of payment |
| Date of joining | Exact date |
| Social security | Provident fund and ESI coverage, with UAN and ESI number where available |
| Nature of duties | A short description of the job |
| Maternity benefit (women employees) | Whether maternity benefit under the Code on Social Security, 2020 applies |
The legal points your letter should reflect
| Topic | What the Codes say | Drafting tip |
|---|---|---|
| Definition of wages | Under the Code on Wages, 2019, if allowances and other excluded items exceed 50 per cent of total remuneration, the excess is added back to “wages” for the Codes | Show basic pay and allowances clearly; check that PF and gratuity are computed on Code “wages” |
| Payment dates | Monthly wages by the 7th day of the following month; on resignation, removal or retrenchment, within two working days (section 17, Code on Wages) | State the pay date and the full and final settlement timeline |
| Working hours | Not more than 8 hours a day and 48 hours a week; overtime at twice the ordinary rate (OSH Code) | Write normal hours and the overtime rule; State rules may allow different daily spread |
| Annual leave | One day for every 20 days worked, for workers who have worked 180 days or more in a calendar year (OSH Code) | Your policy can be more generous, never less |
| Fixed-term employment | Fixed-term employees get the same hours, wages and benefits as permanent staff doing similar work, and gratuity on a pro rata basis without the five year condition (Code on Social Security, section 53) | Use a separate fixed-term contract with a clear end date |
| Worker or not | “Worker” excludes managerial and administrative staff, and supervisors earning more than Rs 18,000 a month (Industrial Relations Code, 2020) | Senior staff rely mainly on their contract, so draft notice, confidentiality and IP clauses carefully |
| Termination and retrenchment | Retrenchment of a worker with one year’s service needs one month’s notice (or pay) and compensation, plus 15 days’ wages to the worker re-skilling fund | Keep statutory protections intact; contract terms cannot reduce them |
| Personal data | The DPDP Act, 2023 and Rules, 2025 apply to employee data; core duties begin on 13 May 2027 | Add a short employee privacy notice now |
Free checklist: appointment letter skeleton
Use this order for a permanent employee’s letter. Put it on letterhead and keep a signed copy.
- Reference number, date, employee name and address.
- Appointment: designation, department, place of posting, date of joining.
- Nature of employment (regular) and probation period, with how confirmation happens.
- Statutory particulars schedule: skill category, wages break-up, wage period, UAN and ESI, maternity benefit applicability.
- Working hours, weekly off, overtime.
- Leave entitlement and holidays.
- Social security: PF, ESI where applicable, gratuity, maternity benefit.
- Notice period for resignation and termination, and full and final settlement within two working days of separation.
- Code of conduct and POSH policy acknowledgement.
- Confidentiality and intellectual property.
- Personal data notice (what employee data is collected and why).
- Governing documents: standing orders or service rules, if any.
- Signature of authorised signatory; employee’s acceptance with date.
Need the complete, editable set? The Lexfolio Employment Documents Set includes an offer letter, a Labour Code compliant appointment letter with a statutory particulars schedule, a fixed-term contract, a manager’s employment agreement, a consultant agreement, NDAs, and experience, relieving and full and final settlement letters, with a guide to the four Codes.
Offer letter, appointment letter and employment agreement
- Offer letter: a short conditional offer with CTC and joining date. It can say that the appointment letter will contain full terms.
- Appointment letter: the statutory document under the OSH Code. Issue it on or before joining.
- Employment agreement: a longer contract signed by both sides, useful for senior, technical or sales roles. It does not replace the statutory appointment letter; attach the statutory schedule or issue both.
Note that an agreement signed by both parties may attract stamp duty under your State’s stamp law, while a letter signed only by the employer usually does not.
Common mistakes
- Issuing no letter, or a letter without the particulars in the State form.
- Keeping basic pay artificially low, so that allowances exceed 50 per cent and the PF and gratuity base is wrong.
- Using fixed-term contracts to deny benefits that permanent staff doing the same work get.
- Writing a notice or non-compete clause that tries to override statutory rights. Post-employment non-competes are generally unenforceable in India under section 27 of the Indian Contract Act, 1872.
- Forgetting to give the employee a signed copy and record its delivery.
- Not updating letters for employees who were in service before 21 November 2025.
Update your HR documents in one go. The Employment Documents Set is drafted around the Labour Codes and the 2026 Central Rules, with shaded notes telling you where your State form may need extra fields.
Running a workplace with women employees? Read our POSH compliance checklist. Collecting employee or customer data online? See our guide to a privacy policy under the DPDP Act.
Frequently asked questions
Is an appointment letter mandatory under the new Labour Codes?
Yes, for establishments covered by the OSH Code. Section 6(1)(f) requires it for every employee, in the prescribed form.
Do existing employees also need appointment letters?
Yes. Employees already in service when the Code commenced on 21 November 2025 were to receive letters within three months. If that has not happened, issue them now.
Which form should a private company use?
Usually the form under your State’s OSH rules, because the State is the appropriate Government for most private establishments. Central Government establishments use the Central Rules.
Can a company with fewer than ten employees skip the appointment letter?
The OSH Code may not technically apply, but State shops and establishments laws may still require written terms, and a letter protects both sides. Issue one anyway.
Does the 50 per cent wages rule mean basic pay must be 50 per cent of CTC?
Not exactly. If excluded components exceed half of total remuneration, the excess is treated as wages for the Codes. Many employers restructure so that basic pay plus dearness allowance is at least half.
Should the appointment letter be signed by the employee?
The employer issues and signs it. Get the employee to sign an acceptance on a copy, which is your proof of delivery.
*This article is general information, not legal advice.*