LETTERS OF APPOINTMENT INTRODUCTION An appointment letter is document that embodies employment contact between an employer and employee.

It lays obligations and rights on both parties. The legal relationship between the employee employer is determined by the appointment letter. LEGAL ASPECTS OF APPOINTMENT LETTER Employment act vary from country to country. Each country has its own requirements of equal oppurtunities, reservations, workplace, regulations holidays and leave, retirement benefits contribution to retirement funds and taxes to be deducted source. Employment terms depend on the regulations covering the posts and class of employees. There are several regulations to be born in mind. There are: a) Agreement : Agreement with union where there is a collective bargaining for specific types of posts. These are enforcable by law. Manual workers, teachers, clerical staff, bank staff and some other group bound with govern by agreement. No employer the an the and

can formulate a contract that is less favourable to the employee. b) Laws: Laws cover various type of industries, employees lower and higher age limits, regulation about female employees and so on. A few employment act and rules are listed below:Employment Acts and Rules 1) Apprentices Acts, 1961 2) Apprenticeship Rules, 1992 3) Contact Labour Central Rules, 1971 4) Sales Promotion Employees Act, 1976 5) Maternity Benefits Acts, 1961 6) Payment of Gratuity Acts, 1972 7) Plantations Labour Act, 1951 Appointment Letter An appointment letter is an offer of employment, and like any business offer, requires acceptance. The employer also indicates the mode of acceptance, which is usually by signing and returning the attached acceptance slip. - The letter should be three to four pages long.

- In case of professional and senior management appointment made by a short appointment letter giving the date of joining and mentioning the enclosed contract. Items that must be included 

Title of post  Dates of joining/ starting (and ending in case of contractual or temporary appointment).  Hours of work.  Place of work.  Nature of work.  Code of conduct.  Reporting manager/ supervisor. Leave.  Superannuation.  Notice required from either side for termination.  Severance package. (in case of senior management)  Any other agreement arrived at by negotiation.  Emoluments and other benefits.

Letter of Appointment Mr. Sandipan Chakraborty Full address: Dear Mr. Sandipan Chakraborty, We are pleased to offer you the position of Marketing Manager in ABC Pvt. Ltd.,(the company) on the following terms and condition. 13 July 2011

Date of commencement a) Your employment will commence on 1st August 2011. b) Your probation period will be three month from the date of commencement. The company may extend the probation period as its sole discretion.

Salary a) Your starting basic salary will be Rs. XX,XXX per month. b) Your performance will be reviewed periodically and the company will make adjustments to your salary as it sees fit.

c) The company will deduct from your salary and bonus all such sums it is required to deduct under the Employment laws of India, whether for your share of Provident Fund Contributions, or taxes or otherwise. d)You are not entitled to a transport allowance. Duties Your duties as Marketing Manager are as follows :a) Developing Marketing Strategies b) Implementing Marketing Strategies c) Conducting Marketing Research d) Development of Marketing and Communication materials e) Supervising your Marketing team f) Increasing our Company¶s Marketing yield g) Reporting to the Chief Executive Officer Working Hours a) The company¶s working hours are Monday to Friday, from 9 a.m. to 6p.m.. You are entitled to one hour of lunch break everyday.

b) You may work beyond the normal working hours to discharge your duties at sole discretion of the company. c) The company reserves the right, at its sole discretion, to revise, amend or extend the working hours should need arise. Annual Leave a)Beside the gazetted public holidays, you are entitled to fifteen days of paid annual leave on the completions of one year¶s of service from date of confirmations of your employment. Prorated annual leave before the completion of one year service is at the sole discretion of the company. b) You are not entitled to any leave during the probation period.You cannot carry forward any unutilized annual leave to the next year. Any leave balance at the end of calendar year shall be forfeited. c)Unpaid leave will be granted at the sole discretion of the company. If you from work on unpaid leave without prior approval from the company , the company reserve the right to terminate your employment without notice.

e) You are entitled to five days of casual leave per calendar year company on the completion of the first year of service. Approval for casual leave shall be at the sole discretion of the company. f) All leave applications must be made in writing, at least seven (7) days in advance and shall be approved at the absolute discretion of the company. Sick leave a) You must notify the company and/or your immediate supervisor as soon as practicable if you are unable to work for medical reasons. Such notice must be given within the first four hours of working day. b) You are required to produce, without demand, a medical certificate in all cases where you are absent from work for medical reasons. c) You are entitled to fourteen days of paid sick leave per calendar year, on confirmation of your employment. Sick leave during the probation period shall be approved at the sole discretion of the company.

d) If you are hospitalized on a doctor¶s written order , you may get up to forty-five (45) additional days of paid sick leave per calendar year. Termination and Notice a) During the probationary period, either party may terminate the contract by giving two (2) week¶s notice or the equivalent of two (2) week¶s salary in lieu of notice. b) Upon confirmation of your employment, either party may terminate the contract by giving one (1) month¶s notice or one (1) month¶s salary in lieu of notice. c) The company reserves the right reasons for termination. not to give any

f) During your notice period, you shall hand over all documents and materials relating to your work and ensure a smooth transition of your duties and responsibilities. If you fail to convert the hand over during the notice period, the company shall be fully entitled to require and compel you to stay two (2) more weeks after the notice period has ended to complete the hand-over.

Confidentiality a) You shall not disclose to any third party any confidential information obtained during your course of employment unless expressly authorized by the company. b) Confidential information for the purpose of this contract includes but is not limited to trade secretes, business plans, strategies, financial information and any other information that will affect the Company¶s competitive position. c) Your obligation to maintain confidentiality shall be apply after your employment until such time that the information is no longer confidential. d) You shall not without prior written consent of the Company destroy, make copies, duplicate or reproduce in any form the Company¶s confidential information.

Governing law This letter of appointment shall be governed by and constructed in accordance with the laws of India.

Please confirm your acceptance of the above terms and conditions by signing and returning to us the duplicate copy of this Letter within seven (7) days from the date of this Letter. Yours faithfully, For and on behalf of ABC Pvt. Ltd. Sanjay Singhania Chief Executive Officer Employee¶s Acknowledgement I accept and agree to the above- stated terms and condition Signature: Name: Sandipan Chakraborty Date: 22 July 2011

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COMPANY LETTER HEAD [Date] To APPOINTMENT AS NON-EXECUTIVE DIRECTOR ««««««««««««««««««««««« ««««««««««««««««««««««« «« DURATION OF APPOINTMENT ««««««««««««««««««««««« ««««««««««««««««««««««« «« Role of the Board ««««««««««««««««««««««« ««««««««««««««««««««««« ««

Remuneration ««««««««««««««««««««««« ««««««««««««««««««««««« «. Committee Involvement ««««««««««««««««««««««« ««««««««««««««««««««««« «.. Board and Individual Director Evaluation Process ««««««««««««««««««««««« ««««««««««««««««««««««« «. Outside Interest Including Directorship ««««««««««««««««««««««« ««««««««««««««««««««««« « Shareholding by Directors in the Company ««««««««««««««««««««««« ««««««««««««««««««««««« «.

Induction and Developmental Process ««««««««««««««««««««««« «««««««««««««««««««««««. . Access to Liability Insurance ««««««««««««««««««««««« ««««««««««««««««««««««« «.. Confidentiality ««««««««««««««««««««««« ««««««««««««««««««««««« «« Yours sincerely, Chairman

Good governance for companies to have a practice of providing all directors with a appointment letter. The content of the letter will vary according to the type and size of the company. They have suggested the following items to be considered for inclusion. 

The term appointment, including period, commencement date, compliance by a proposed director with any regulatory requirements regarding appointment, the need to retire at the next annual general meeting (if applicable) and then by a rotation , at least every three years.  The time of commitment envisaged, in hours/days per month, schedule of meetings for the year.  The expectations regarding discharge of the duties andinvolvement with committee work and rotation ofmembership of such committees.  Any special duties attaching to the position having regard to the director¶s qualifications and experience, including servingon subsidiary company boards, joint venture companies and trust. (eg- superannuation). 

Remuneration and expenses, including committee fees andthe requirement to take a portion of the remuneration in securities.

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