As per the law of land, Ignorance of law is not an excuse.

Every
person is presumed to know the law of land. We treat the small
problem as big problem due to legal ignorance. Many times ,
legal knowledge can be helpful in decreasing our tension. We
cannot avoid the law because law affects our life directly or
indirectly. We are working in mission of removing legal
ignorance from our country. For any query please contact me
Dr. Deepak Miglani
at legalbuddy@gmail.com , Mobile:9215514435

Legal Knowledge
GUIDELINES FOR DRAFTING OF AN APPOINTMENT LETTER
An appointment letter contains the terms and conditions of employment including designation
of job, emoluments, transfer, retirement age and notice period for termination or resignation.
Be it clarified at the very outset that at the time of appointment of an employee, an employer
can incorporate any possible terms and conditions but not afterwards, may it be pertaining to
transfer and even retirement of an employee. Hence, an appointment letter must be carefully
drafted instead of postponing or even adopting any other draft or proforma since the labour
laws keep on changing from time to time.
Following guidelines are suggested for drafting of an appointment letter:
1. Name and addresses of the employee: Generally, at the time of initial appointment, the
employees are required to give their local as well as permanent addresses. This
facilitates the employer to send any communication to the employee either by post or
through courier.
2. Designation of the employee and job description: Although the term ‘designation’ does
suggest the duties which an employee, of a particular designation, is required to
perform but it is not always the criterion for deciding the status of a person and it is the
actual duties which determine the status of a person. It is advisable to define the duties
elaborately. Since designation does not classify the employees and while doing so, the
person/persons may be classified as unskilled, semiskilled, skilled, highly skilled, clerical,
field staff and supervisors, etc.
3. Pay-scales and allowances: Generally, wage means all remunerations capable of being
expressed in terms of money, which would, if terms of employment, express or implied;
were fulfilled, be payable to a workman in respect of the employment or work done in
 As per the law of land, Ignorance of law is not an excuse. Every
person is presumed to know the law of land. We treat the small
problem as big problem due to legal ignorance. Many times ,
legal knowledge can be helpful in decreasing our tension. We
cannot avoid the law because law affects our life directly or
indirectly. We are working in mission of removing legal
ignorance from our country. For any query please contact me
Dr. Deepak Miglani
at legalbuddy@gmail.com , Mobile:9215514435

such employment. In most of the organizations , different allowance, such as dearness

allowance, conveyance allowance, travelling allowance, food allowance, house rent
allowance, etc. are given to the employee hence, these should also be incorporated in
the appointment letter. When an employee is appointed on a salary which could be
subjected to income tax liability, then the break-up be made in the total remuneration
with the constitution of income tax expert so that the conceived employee could avail
the benefit of exemption.
4. Probation Period: The term ‘Probationer’ in its ordinary dictionary meaning connotes
the employment either of a fresh entrant to service on test or of an existing officer to
higher post on test and is tantamount to suspension of final appointment to an office
until a person, temporarily appointed, has by his conduct proved himself fit to fill it and
the probation has been equated to period of testing. Also, a probationer continues , in
writing, as held by the supreme Court but does not mean that a probationer will be on
probation indefinitely. It is desirable that the initial period of probation should be
mentioned along with the clause that unless the probationer is confirmed in writing, he
will continue to be probationer.
5. Fixed Period Employee: A fixed period employee is one who is engaged either by an
agreement or by an appointment letter for a fixed period and whose services will come
to an automatic end without notice or compensation.
6. Bond of Fidelity: Some categories of employees, such as cashiers or salesman, have to
handle large amounts of money and it is desirable that such employees be asked to
furnish a bond of fidelity. Such a clause should, therefore, be inserted in the
appointment letter.
 As per the law of land, Ignorance of law is not an excuse. Every
person is presumed to know the law of land. We treat the small
problem as big problem due to legal ignorance. Many times ,
legal knowledge can be helpful in decreasing our tension. We
cannot avoid the law because law affects our life directly or
indirectly. We are working in mission of removing legal
ignorance from our country. For any query please contact me
Dr. Deepak Miglani
at legalbuddy@gmail.com , Mobile:9215514435

7. Transfer of an employee: It is pertinent to state here that transfer of an employee from

one place to another is an incident of service and no employee can have a fixed place of
work but there must be a clause to this effect. Accordingly, such clause should be
incorporated in the appointment letter itself to the effect that the services of the
employees shall be liable to be transferred from one machine to another and from one
shift to another or from one department to another or from one section to another or
from one factory/ establishment to another, whether located in the same place or
elsewhere and whether existing at the time of appointment or comes into existence.
8. Prohibition to divulge confidential information: Very often, the employees are
required to deal with the matters which are of confidential nature and it is, therefore,
advisable that a clause be inserted in the appointment letter providing that the
employee will not divulge or disclose the information or the affairs or transactions
which may come to his knowledge during the course of his employment or otherwise.
9. Automatic termination of service and abandonment : In almost all the standing orders
of big industrial establishments there is a provision providing for abandonment and/or
relinquishment and/or automatic termination of service of an employee who remains
absent without leave or permission continuously for eight consecutive days except in
the event of his giving an explanation regarding the cause of his absence to the
satisfaction of the employer. Abandonment or relinquishment of service and/or
automatic termination of service is always a question of intention, and normally, such
an intention cannot be attributed to an employee without adequate evidence in that
behalf. Notwithstanding that such a clause must be incorporated in the appointment
letter and will certainly fortify the employer particularly when such provisions are
 As per the law of land, Ignorance of law is not an excuse. Every
person is presumed to know the law of land. We treat the small
problem as big problem due to legal ignorance. Many times ,
legal knowledge can be helpful in decreasing our tension. We
cannot avoid the law because law affects our life directly or
indirectly. We are working in mission of removing legal
ignorance from our country. For any query please contact me
Dr. Deepak Miglani
at legalbuddy@gmail.com , Mobile:9215514435

invoked for the employees who are not covered by the definition of 'workman' under
the Industrial Disputes Act, 1947.
10. Prohibition of Double Employment: All the Shops and Establishments Acts and the
Factories Act prohibit double employment by an employee. As such, an employee is not
expected to accept any part-time employment and therefore a condition to this effect
be incorporated that the employee will be prohibited to accept any employment either
for remuneration or otherwise.
11. Provisions for Medical Examination: Some of the appointment letters, standing orders
or Shops and Establishments Acts provide that it will be open to the employer that he
can get the employee medically examined by any registered medical practitioner. Such a
right of the employer is in the interest of efficiency on the part of the employees.
Therefore, a clause with regard to periodical medical examination of the employee is
within the right of the employer and be incorporated in the appointment letter.
12. Residential Accommodation: Where an employee is provided with residential
accommodation by the employer, it is advisable that a separate agreement be made. It
is advisable that a clause be incorporated in the appointment letter to the effect that
accommodation is being provided to the employee because of his being in the
employment and the employee can be asked to vacate the same even if he continues to
be in the employment of the employer. Also , the employee will be only a licensee and
not a tenant.
13. Provision for suspension/subsistence allowance: In the absence of a specific provision
in the appointment letter or certified standing orders, an employer will have to pay full
wages during his suspension period. Hence, such a clause must be inserted in the
appointment letter.
 As per the law of land, Ignorance of law is not an excuse. Every
person is presumed to know the law of land. We treat the small
problem as big problem due to legal ignorance. Many times ,
legal knowledge can be helpful in decreasing our tension. We
cannot avoid the law because law affects our life directly or
indirectly. We are working in mission of removing legal
ignorance from our country. For any query please contact me
Dr. Deepak Miglani
at legalbuddy@gmail.com , Mobile:9215514435

14. Other Clauses: Thus, an appointment letter besides above clauses should incorporate
the following conditions which are only illustrative and not exhaustive.
(a) You shall not terminate your employment without giving one month's notice in
writing or salary in lieu of such notice.
(b) Your appointment and continuance in employment will always and at all times be
subject to your remaining medically fit and the management shall have a right to get
you examined at any time from a registered medical practitioner.
(c) You shall be the whole-time employee of the management and shall not engage
yourself in any other work, profession or employment either honorary or otherwise
during the period of your employment without obtaining express permission from
the Management.
(d) You shall not accept any contribution or otherwise associate with the raising of
any funds or make any other collections, whether in cash or in kind in pursuance
of any object, whatsoever, or accept or demand any subscription from any employee
or staff members of the Management.
(e) You shall be retired on attaining the particular age or on completion of a
particular span of time in service whichever is earlier. The Management, however,
reserves the right to re-employ you at its discretion subject to your remaining
physically and mentally fit for discharge of requisite duties.
(f) You shall conform to all rules and regulations in force from time to time in
the Management and shall carry out all other lawful orders/instructions/directions
of your superiors as are given to you in connection with the day-to-day discharge
of your duties while in employment of the Management.
 As per the law of land, Ignorance of law is not an excuse. Every
person is presumed to know the law of land. We treat the small
problem as big problem due to legal ignorance. Many times ,
legal knowledge can be helpful in decreasing our tension. We
cannot avoid the law because law affects our life directly or
indirectly. We are working in mission of removing legal
ignorance from our country. For any query please contact me
Dr. Deepak Miglani
at legalbuddy@gmail.com , Mobile:9215514435

In case the above terms and conditions of service are acceptable to employee, then
he should return the duplicate copy of the offer of appointment after affixing his signature on
the same in token of his acceptance and present himself for duty within .... days from the
receipt thereof.

In the end along with the signature of the employee it must be mentioned that 'I have read and
understood the above terms and conditions of my service and undertake to abide by them.

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