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+Offers of employment can be made verbally or in writing. An offer letter is any notice in written form that informs a candidate that they have been selected for employment. It’s a formal letter that often includes the details of employment, from the start date, to benefits and, most importantly, the terms of employment.
Again, it all comes down to what is and isn’t relevant to your small business and its hiring process, but a few common elements to consider covering include:
Whether or not a job offer is a binding contract depends on a few things. Technically, they’re all binding contracts, but it’s the terms of the contract that dictate just how binding it is. Most job offer letters will include a formal start date but say nothing about the term of employment (aka the end of it).
Instead, there is often a clause describing the employment as an “at-will” contract, which means that either party can terminate it as long as the terms of termination are met (this is where the amount of time necessary for giving notice and the like are taken care of).
Offer letter is the first step to get an employee on board and to express the interest of the company in hiring the candidate while appointment letter is given after offer letter.
Currently, there is no central law that requires mandatory issuance of offer and appointment letter. Source: Indiatimes News