Appointment Letter vs. Offer Letter: Key Differences & When Each Matters
An offer letter is a preliminary “yes, we want you” sent after interviews; an appointment letter is the final, legally binding contract that confirms your role, salary, and start date.
People mix them up because both land in your inbox with congratulations. Yet signing an offer letter still leaves room for negotiation, while the appointment letter locks everything in—miss that nuance and you can lose leverage or even the job.
Key Differences
Offer Letter: conditional, outlines basic terms, may reference background checks. Appointment Letter: unconditional, specifies designation, CTC, reporting structure, and effective date. One starts the dance, the other seals it.
Which One Should You Choose?
You don’t choose; the stage does. Respond to an offer letter with questions and negotiations. Only act on the appointment letter when you’re ready to commit—signing it means you’ve accepted every clause.
Examples and Daily Life
WhatsApp ping: “Congrats, here’s your offer letter!” Two weeks later, courier drops the appointment letter. You forward the PDF to your family group, then line up rent agreements and resignation plans.
Can I negotiate after receiving the appointment letter?
No; negotiate during the offer stage. The appointment letter is the final handshake.
Is an offer letter legally binding?
Generally not; it’s an intent, not a contract. The appointment letter carries legal weight.
Do startups always send both?
Many skip the formal appointment letter. If they do, request one—it protects both sides.