Appointment Letter Format in 2026: The Mandatory Fields Under the OSH Code and a Clause-by-Clause Template

For years an appointment letter was good HR practice. Since 21 November 2025 it has been the law: the OSH Code makes every covered employer hand each employee a letter of appointment, and the central rules notified in May 2026 prescribe what it must say. This guide is for MSME owners, HR staff and accountants who hire people and want a letter that satisfies an inspector and avoids disputes later. You'll get the 16 mandatory fields, the clauses a good letter adds on top, how probation, notice and fixed-term employment work now, and a filled template with a ₹ salary structure.

Quick answer

Under section 6(1)(f) of the OSH Code, in force since 21 November 2025, every employer must issue a letter of appointment to each employee on appointment. Rule 6 of the OSH (Central) Rules, 2026 prescribes a 16-item format and says no employee may be employed without one. Add clauses on probation, hours, notice, leave and confidentiality, and sign it — a digital signature is fine.

• Mandatory fields include Aadhaar (with consent), LIN, UAN/ESI number, type of employment, skill category, wages and PF/ESI applicability

• Staff already employed when the Code began had to get a letter within three months of the Code's commencement

• Probation under the Model Standing Orders: six months (extendable by up to three months)

• Fixed-term staff: written contract, parity with permanent staff, gratuity after 1 year

Is an appointment letter mandatory now?

Yes. Section 6 of the Occupational Safety, Health and Working Conditions Code, 2020 lists the general duties of every employer. Clause (f) requires the employer to "issue a letter of appointment to every employee on his appointment in the establishment, with such information and in such form as may be prescribed". It adds that where an employee had not been given one before the Code began, the letter must be issued within three months of commencement. The Code commenced on 21 November 2025, so employers had until late February 2026 to issue letters to their existing staff. If you missed that window, issue them now — the duty continues.

The duty covers every "employee", and the Code's definition of employee is wide. It includes anyone employed on wages to do skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work. So unlike the leave provisions, which apply only to "workers", the appointment-letter rule applies to managers as well. It does not cover apprentices engaged under the Apprentices Act.

The OSH Code applies to "establishments", which for most businesses means a place where ten or more workers are employed, along with factories, mines, plantations, docks and building work as the Code defines them. A five-person consultancy may sit outside the Code; it should still issue appointment letters, because the letter is the only clear record of what was agreed and a state Shops Act or a future notification may bring it in.

The central rules spell out the consequence plainly. Rule 6 of the OSH (Central) Rules, 2026 opens: "No employee shall be employed in any establishment unless an appointment letter has been issued to such employee". Failing to comply is a contravention that the Code's penalty chapter covers, and in any dispute over wages, designation or length of service, an employer with no letter starts on the back foot.

Which rules apply to your business

The central rules — G.S.R. 345(E), notified on 8 May 2026 (G.S.R. 345(E)) after a draft published on 30 December 2025 — apply where the central government is the "appropriate government": central public sector undertakings, railways, mines, ports, banks, insurance companies and a few other sectors. Most private businesses — shops, small factories, restaurants, IT services, agencies — fall under their state government, which notifies its own OSH rules with its own appointment-letter format.

State rules have been notified at different times, and many follow the central format closely. Until your state's final rules are in force, the safe approach is to use the central rule 6 format as a minimum and add anything your state's draft or final rules require. A letter that contains every central field will rarely be faulted for missing information.

The 16 mandatory fields in rule 6

Rule 6 prints a short format rather than a full letter. Each item below must appear; the column on the right explains what to write.

The letter ends with the signature or digital signature of the employer.

Three fields need care. Aadhaar may be recorded only with the employee's consent; take that consent in writing and never make it a condition of employment. Category of skill links the letter to the minimum wage — if you classify a machine operator as "unskilled" to pay a lower minimum, the letter becomes evidence against you. PF and ESI applicability must reflect the codes' definition of wages, not basic pay alone; an employee whose wages under the 50% rule fall within ₹21,000/month is covered by ESI in a covered unit.

Appointment letter vs offer letter

An offer letter is sent before joining. It proposes a role, pay and joining date, and the candidate accepts by signing it. It is useful for securing a candidate and for background checks, but no law requires it. The appointment letter is issued on or after joining and records the terms on which the person is actually employed. That is the document the OSH Code requires.

Many small businesses skip the offer letter and issue only an appointment letter on day one. Larger employers send both. If you do, make sure the appointment letter matches the accepted offer or explains any change; a gap between them is a common source of disputes over pay and notice.

Offer letter vs appointment letter

	Offer letter	Appointment letter
When	Before joining	On or after joining
Legally required?	No	Yes — OSH Code s.6(1)(f)
Prescribed format?	No	Rule 6 (central) or state rules
Purpose	Proposal to be accepted	Record of actual terms
Contains Aadhaar, LIN, UAN?	Rarely	Yes, as prescribed
Signed by	Candidate (accepting)	Employer; employee acknowledges

When

Offer letter

Before joining

Appointment letter

On or after joining

Legally required?

Offer letter

No

Appointment letter

Yes — OSH Code s.6(1)(f)

Prescribed format?

Offer letter

No

Appointment letter

Rule 6 (central) or state rules

Purpose

Offer letter

Proposal to be accepted

Appointment letter

Record of actual terms

Contains Aadhaar, LIN, UAN?

Offer letter

Rarely

Appointment letter

Yes, as prescribed

Signed by

Offer letter

Candidate (accepting)

Appointment letter

Employer; employee acknowledges

Clauses to add beyond the mandatory fields

Rule 6's last field, "any other information", is where a useful letter does its work. These are the clauses that prevent most later disputes.

Wages and pay date. Show the monthly breakup and state when wages are paid. Under section 17 of the Code on Wages, monthly wages must be paid before the end of the 7th day of the next month. Structure pay so that basic, DA and retaining allowance are at least half of total remuneration, or remember that the excess of excluded allowances is added back to wages for PF, ESI, gratuity and bonus.

Working hours and overtime. Section 25 of the OSH Code limits a worker to eight hours a day, and rule 64 of the central rules caps the week at 48 hours. Overtime is paid at twice the normal rate of wages. State the shift timings, the weekly off and how overtime is approved.

Probation. Say how long it lasts, whether it can be extended and what notice applies during it. For industrial establishments covered by standing orders, the Model Standing Orders, 2026 define a probationer as someone who has not yet completed six months in a permanent post, allow an extension of up to three months after a performance assessment, and treat a worker who completes probation satisfactorily as permanent. Standing orders apply by law to establishments with 300 or more workers, but many smaller employers adopt the same terms.

Terms to state in the letter (2026)

8 hours

Daily working hours

48 a week (OSH Code s.25; rule 64)

twice the normal rate of wages

Overtime rate

six months (extendable by up to three months)

Probation

Model Standing Orders, 2026

one month's notice or wages in lieu

Employer notice — permanent worker

Notice period. State the notice each side must give. Under the Model Standing Orders, an employer terminating a permanent worker must give one month's notice or wages in lieu; probationers, temporary, casual and fixed-term workers whose contracts end are not entitled to notice. For resignations, the notice is whatever the contract says — keep it reasonable and symmetrical, and say whether pay in lieu is accepted.

Leave. Mention annual leave at no less than the OSH Code's 1 day for every 20 days worked after 180 days of work, carry-forward up to 30 days, and any casual and sick leave under your state Shops Act or policy. Our leave encashment guide has the detail.

Confidentiality and restraint. A clause protecting confidential information and requiring its return at exit is enforceable. Post-employment non-compete clauses are generally unenforceable in India because section 27 of the Indian Contract Act voids agreements in restraint of trade, so focus on confidentiality and non-solicitation rather than blanket bans.

Exit terms. Say that final dues are paid within the legal time limit, that a relieving letter and service certificate will be issued, and list what the employee must return. This sets expectations for the full and final settlement.

Fixed-term and contractual employees

Fixed-term employment is now recognised in all sectors. Section 2(o) of the Industrial Relations Code defines it as engaging a worker on a written contract for a fixed period, on three conditions: hours of work, wages, allowances and other benefits must not be less than those of a permanent worker doing the same or similar work; the worker gets all statutory benefits proportionately to the period served; and gratuity is payable after one year of service under the contract.

So a fixed-term appointment letter should state the start and end dates, confirm parity with permanent staff, set out pro-rata leave and bonus, and mention gratuity after 1 year. Rule 6's "type of employment" field should say "Fixed-term", and the letter should explain whether the contract may be renewed. Ending the contract on its expiry date is not retrenchment, so no retrenchment compensation is due.

For contract labour supplied by a contractor, the appointment letter is the contractor's duty as the employer, but the principal employer should check that each contract worker on site has one. Rule 6 includes "contractual" as a type of employment for this reason.

A filled appointment letter template

Here is how the pieces come together for a real hire. Priya Nair joins a 25-person electronics assembly unit in Chennai as a quality inspector on 1 November 2026. Her monthly pay is basic ₹16,000, DA ₹4,000, HRA ₹6,000 and conveyance ₹2,000 — total ₹28,000.

Before writing the letter, run the wages test. Excluded items (HRA and conveyance) are ₹8,000, well under half of ₹28,000, so her wages under the codes are basic plus DA: ₹20,000. That puts her within the ₹21,000/month ESI limit, so field (xiii) must say ESI applies. PF applies on ₹20,000, which is within the ₹25,000 a month ceiling. Field (ix) should be "skilled" if her work matches that category in the Tamil Nadu minimum-wage notification for her industry; check that basic plus DA meets the minimum for that category.

Issuing the letter

Step 1

Test wage structure (50% rule)

Step 2

Check skill category vs minimum wage

Step 3

Fill rule 6 fields

Step 4

Sign or e-sign

on the joining date

Step 5

Employee acknowledges

keep on file

The letter, in outline:

[Company letterhead with legal name, address and LIN]

Date: 1 November 2026 · Ref: HR/APT/2026/041

Letter of Appointment

Dear Ms Priya Nair,

We are pleased to appoint you on the following terms:

1. Name: Priya Nair · Date of birth: [dd/mm/yyyy] · Father's/mother's name: [name]
2. Aadhaar: [number, recorded with your consent dated …]
3. Labour Identification Number of the establishment: [LIN]
4. UAN: [existing UAN / to be generated] · ESI IP number: [to be generated]
5. Designation: Quality Inspector · Type of employment: Regular · Category of skill: Skilled
6. Date of joining: 1 November 2026 · Place of work: [unit address]
7. Wages: Basic ₹16,000 + DA ₹4,000 per month
8. Other allowances: HRA ₹6,000, conveyance ₹2,000 per month. No accommodation provided.
9. Social security: You are covered by the Employees' Provident Fund and Employees' State Insurance. Your contributions will be deducted from wages as the law requires.
10. Duties: Inspecting assembled boards against the quality plan, recording defects and reporting to the production supervisor.
11. Maternity benefits: You are entitled to maternity benefit under Chapter VI of the Code on Social Security, 2020 and the ESI scheme as applicable.
12. Other terms: Probation of six months, extendable once by up to three months on assessment. Hours 9:00 am to 5:30 pm with a 30-minute break, six days a week, Sunday off; overtime at twice the ordinary rate with prior approval. Wages paid by bank transfer by the 7th of the following month. Annual leave as per the OSH Code and company policy; casual and sick leave as per the Tamil Nadu Shops and Establishments Act. Notice: one month on either side after confirmation; 15 days during probation. You will keep company information confidential during and after employment.

Signature / digital signature of employer: [name, designation]

Acknowledgement: I have received and accept the above terms. Signature of employee and date.

That letter covers every rule 6 field, ties the wage structure to the codes, and sets out the terms most likely to be argued about later. Issue it in a language the employee understands; if it is in English and the employee reads only Tamil, give a translation as well.

Before you issue the letter

0/8

• All 16 rule 6 fields filled (or your state's format)
• Aadhaar recorded only with written consent
• LIN of the establishment and UAN/ESI number entered
• Skill category matches the minimum-wage notification; basic + DA meets the minimum
• Wage structure tested against the 50% rule; PF and ESI applicability correct
• Probation, hours, overtime, leave and notice stated
• Fixed-term letters show end date, parity and gratuity after one year
• Signed or digitally signed; employee's acknowledgement filed

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Common mistakes

Copying an old template. Pre-2025 templates have no LIN, UAN, skill category or PF/ESI field. Add them.

Leaving the letter until after probation. The Code requires it "on his appointment", and rule 6 bars employment without it. Issue it on the joining date.

Using the letter to cut wages. Low basic with a large special allowance doesn't reduce PF any more, because special allowance is part of wages; a large HRA beyond half of pay is added back. Design the structure honestly. See our PF deduction rules.

Inconsistent notice. A three-month resignation notice paired with no notice for the employer is likely to be challenged. Keep it balanced.

Not updating it. A promotion, transfer or salary revision should be recorded in a letter or addendum that updates the relevant rule 6 fields.

No acknowledgement. Without the employee's signed or emailed acknowledgement, proving that the letter was issued is harder in an inspection.

Official links

• OSH (Central) Rules, 2026 — G.S.R. 345(E)Rule 6 — appointment letter format
• OSH Code, 2020 — section 6 duties of employer
• Model Standing Orders, 2026 — S.O. 2312(E)Probation and notice
• Industrial Relations Code, 2020Section 2(o) fixed-term employment
• Shram Suvidha portalRegistration and Labour Identification Number

What to do next

Pull out every current employee's file, check that each has a letter with all rule 6 fields, and issue updated letters where they don't. Then set up the matching monthly salary slip with our free salary slip generator, and keep the experience letter format ready for when people leave.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Is an appointment letter mandatory in India?

Yes, for every employee of an establishment covered by the OSH Code. Section 6(1)(f), in force since 21 November 2025, requires the employer to issue a letter of appointment on appointment, in the prescribed form. Employees already in service when the Code began had to receive one within three months of the Code's commencement. The central rules say no employee shall be employed unless the letter has been issued.

What must an appointment letter contain under the new labour code?

Rule 6 of the OSH (Central) Rules, 2026 lists 16 items: name, date of birth, parent's name, Aadhaar (with consent), the establishment's Labour Identification Number, UAN or ESI number, designation, type of employment, skill category, date of joining, wages, other allowances, PF and ESI applicability, broad duties, maternity benefits for women, and any other information, signed by the employer.

What is the difference between an offer letter and an appointment letter?

An offer letter is a proposal sent before joining, setting out the role and pay for the candidate to accept. An appointment letter is issued on or after joining and records the actual terms of employment. Under the OSH Code, the appointment letter is the legally required document; an offer letter is optional. Many small employers combine both into one letter issued on the joining date.

What probation period should an appointment letter mention?

There is no single legal maximum for every employer, but the Model Standing Orders, 2026 fix probation at six months (extendable by up to three months) for industrial establishments they cover. Most employers use three to six months, state whether it can be extended, and say what notice applies during probation. A worker who completes probation satisfactorily becomes permanent under the standing orders.

Can an appointment letter be sent by email?

Yes. Rule 6 asks for the employer's signature or digital signature, so an electronically signed PDF sent by email or through an HR portal is valid. Keep a copy with proof of delivery and the employee's acknowledgement, because an inspector can ask to see appointment letters for every employee.

Do fixed-term employees need an appointment letter?

Yes. Fixed-term employment under the Industrial Relations Code must be on a written contract for a fixed period, and rule 6 has a 'type of employment' field for regular, fixed-term or contractual staff. The letter should state the end date and that hours, wages and benefits match those of a permanent worker doing similar work, with gratuity after 1 year.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Occupational Safety, Health and Working Conditions Code, 2020 — sections 2(1)(t), 2(1)(u), 6, 25 and 27 — Directorate General of Mines Safety (text of the Act) · accessed 11 October 2026
2. 2.Occupational Safety, Health and Working Conditions (Central) Rules, 2026 — G.S.R. 345(E), 8 May 2026 — Ministry of Labour and Employment (Gazette of India) · accessed 11 October 2026
3. 3.Model Standing Orders, 2026 — S.O. 2312(E), 8 May 2026 — Ministry of Labour and Employment (Gazette of India) · accessed 11 October 2026
4. 4.The Industrial Relations Code, 2020 (No. 35 of 2020) — Legislative Department (Gazette of India) · accessed 11 October 2026
5. 5.The Code on Wages, 2019 (No. 29 of 2019) — India Code, Legislative Department · accessed 11 October 2026
6. 6.Government announces implementation of the four Labour Codes — PIB — Ministry of Labour & Employment · accessed 11 October 2026
7. 7.The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 — StaffNews · accessed 11 October 2026