Preparing job offers letter for the work-from-home employee in India requires legal compliance, clear communication, and the concept of how the EOR model is actually considered. This article is for the purpose of writing how to draft and send those job offer letters to those remote EOR employees of India.
Table of Contents
- Job Offer Letter & Onboarding Flow for a Remote EOR Employee
- Job Offer Letter Checklist for India
- FAQs
Key Takeaways:
A job offer letter is a formal agreement that outlines the terms of employment and helps settle disputes before they arise. In the case of an EOR, an employee can feel much better knowing that he begins the employment relationship.
A successful job offer letter should contain all crucial elements comprising job title, compensation packages, benefits offered, types of employment, work hours, and confidentiality agreements. It should also meet legal requirements regarding local laws in India such that an offer letter doesn’t work against labor legislation.
The EOR assumes all legal employer responsibility of the remote worker; these duties include handling the payroll, tax compliance, and the associated employment law responsibilities. Companies will thus be able to source Indian talent without needing a local presence.
Job Offer Letter & Onboarding Flow for a Remote EOR Employee
Prior to drafting a job offer letter, understand how the EOR model works. The EOR will take care of all legal employment issues and you can focus on the work and performance of the employee.
- Drafting the Job Offer Letter:
- Header Information: Your company name and address, date, and address the candidate by his or her name.
- Position Details: Write the job title, department, and manager’s name.
- Compensation Package: Describe salary, frequency of pay (monthly/bi-weekly), bonus structure, and any equity offerings.
- Type of Employment: Specify if it is full-time, part-time, or contract work.
- Benefits and Perks: Describe health insurance, leave policies, and any other benefits or perks.
- Start Date: List proposed start date, contingencies such as background checks, etc.
- Acceptance Instructions: Clearly spell out acceptance instructions, signatures required and return deadlines.
- Legal Compliance: Confirm that it is in strict compliance with Indian labor law and possibly other regulations related to remote workers, including tax effects. A local legal counsel should ideally be sought to confirm it is properly compliant.
- Integration in onboarding processes
- Include sending a job offer letter as among other onboarding activities; which may include collecting essential documents, scheduling of some training, and setting the computer and IT, an onboarding tool will avail all this.
- A checklist of all the onboarding tasks to be completed after acceptance of the offer letter should be created so that a smooth transition of the new hire is ensured.
- Assign Responsibilities: Provide HR staff, managers, and IT with specific tasks to ensure that the onboarding process goes smoothly.
- Feedback Loop: Develop a procedure for soliciting new telecommuter feedback on their first experience with the onboarding process to better future process.
Offer Letter vs Employment Letter in India
| Criteria | Offer Letter | Employment Letter |
| Definition | A formal document stating the terms of employment offered to a candidate. | A formal document confirming the terms of employment after acceptance of the offer. |
| Stage of Hiring | Issued before the candidate joins the company. | Issued after the candidate has accepted the offer and completed onboarding. |
| Content | Job title, salary, benefits, start date, and terms. | Job title, duties, terms of employment, and details about the employment relationship. |
| Purpose | To formally invite the candidate to accept the job. | To confirm the candidate’s employment officially. |
| Legal Standing | Generally, not a legally binding document. | Often considered a legally binding document outlining employment terms. |
| Acceptance Required | Requires acceptance from the candidate (often by signing). | No further acceptance required; it is a confirmation of the employment agreement. |
| Onboarding Information | Typically does not include detailed onboarding information. | May include details on job expectations, company policies, and reporting structure. |
| Duration | Usually includes a probation period. | May outline tenure or conditions for ongoing employment. |
In the context of remote Employment Outsourcing (EOR) hiring, understanding these distinctions is vital. The offer letter can help clarify the job offer made to potential employees across borders, ensuring compliance with local job market expectations. The employment letter solidifies the legal framework under which the employee will operate, particularly important in cross-border employment scenarios where local labor laws may differ.
Suggested Read: How to write an annual bonus letter to make your employees feel super appreciated
When must a job offer letter be given?
An offer letter must be issued right after the final interview, assuming that the candidate is selected. This is a reflection of efficiency and respect for the candidate’s time. Moreover, the offer must state the number of days the candidate has to accept it. It is usually between 3 to 7 days. This will ensure that the hiring process is not protracted and that top talent is secured before competitors snap them up.
- Clear Communication: All the terms, conditions, and benefits should be clearly stated in the letter to avoid miscommunication.
- Professional Tone: Maintain a professional tone and style that is similar to the company culture.
- Contact Information: Give the candidate a point of contact if they have any questions about the offer.
- Follow-Up: Follow up with a follow-up call or email after the offer letter has been mailed out; this will re-establish your candidate’s comfort and ease in the decision-making process.
What salary needs to be mentioned in an offer letter?
If someone is preparing to draft an offer letter in India, it is prudent to mention clearly the salary and corresponding compensation details. Here are a few guidelines:
- Base Salary: This should mention basic salary, which forms the base for other components of the compensation package.
- Gross Compensation: The amount, as well as gross pay including basic pay, allowances, and other benefits should be mentioned. This would provide a candidate with the overall view of his probable earning.
- Incentives and Bonus: If applicable, one also needs to indicate performance incentive, signing bonus, or one time pay. Such a provision makes the offer worthwhile.
- Deductions : One also wants to state statutory deductions like provident fund or insurance so candidates know how much they bring home.
- Revisions and Reviews: Policies regarding reviews of salary increases or increases must be included, so the candidate will know how and when to adjust.
If an employer follows these guidelines and best practices, they can effectively communicate a job offer and make for a good onboarding experience for new hires in India.
Job Offer Letter Checklist for India
Writing an effective job offer letter is indispensable to any hiring firm and the applicant in India. It is not just that it establishes expectations but it also complies with Indian labor laws. Here’s an exhaustive checklist of the absolute inclusions of a job offer letter:
| Checklist Item | Details | Responsible Party | Notes |
| Job Title | Clearly state the position being offered to avoid any ambiguity. | HR Team | E.g., “Software Developer” |
| Date of Commencement | Mention the exact date the employee is expected to start working. | HR Team | Ensure alignment with joining schedules. |
| Remuneration | Provide a detailed breakdown, including: | Payroll/Finance Team | Include currency and payment frequency. |
| – Basic Salary | |||
| – Allowances | |||
| – Bonuses/Commissions | |||
| Benefits | Clearly outline all job-related benefits: | HR/Benefits Team | Add details of any additional perks. |
| – Health Insurance | |||
| – Retirement Plans | |||
| – Paid Time Off (PTO) and Holidays | |||
| – Other Benefits (Work from home, travel allowance, etc.) | |||
| Working Hours | Specify working hours, including overtime policies, if applicable. | HR Team | Include weekly schedule details. |
| Type of Employment | Indicate whether the role is permanent, contract, or temporary. | HR Team | Include details in the agreement. |
| Probation Period | Mention the duration of the probation period, if any, and associated terms. | HR Team | E.g., “3 months probation period.” |
| Confidentiality and Non-Disclosure Agreements | Include clauses protecting confidential information and intellectual property. | Legal Counsel | Essential for roles involving sensitive data. |
| Termination Clause | State the grounds for termination and required notice periods from both parties. | Legal Counsel & HR Team | Must comply with Indian labor laws. |
| Compliance with Indian Labor Laws | Ensure the letter adheres to all applicable labor regulations: | Legal Counsel | Include statutory contributions. |
| – Payment of Wages Act, 1936 | |||
| – Minimum Wages Act, 1948 | |||
| – Industrial Disputes Act, 1947 | |||
| – Gratuity and Provident Fund Details | |||
| Anti-Discrimination Laws | Confirm adherence to fair employment practices and anti-discrimination laws. | Legal Counsel | Ensure inclusivity in terms. |
Ensure that the payment is in accordance with the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Industrial Disputes Act, 1947, and all other state-specific laws. Include mandatory details such as gratuity, provident fund contributions, and any other statutory benefits. Also be aware of anti-discrimination laws and fair employment practices.
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FAQs
1. Can I resend my offer letter?
Absolutely, if the offer letter was not acknowledged or it needed to be resent to correct issues. The candidate should also be informed when the letter is being resent.
2. What is the usual notice period for candidates in India?
In India, the notice period ranges from 15 days to 3 months. This varies with the company’s policy and the post held by him or her.
3. When do I mention my company policies in the offer letter?
It should be included in the offer letter itself or put in a different document to which the candidate should refer to read before accepting the offer.
4. Can I revoke an offer letter?
Yes, you can withdraw your offer letter in India as long as you do that based on your company guidelines and legal provisions.
5. How to revoke an offer letter I sent to a candidate?
You can withdraw an offer letter from a candidate by drafting a written letter to him stating all the valid reasons why you will not be providing him employment opportunity anymore and following it by whatever formal procedure is adopted according to your company regulations.
6. Who is considered an independent contractor under Indian law?
An independent contractor is someone or any other such entity which renders services independently on his own account and in his own discretion, other than as an employee, are not governed by the rule of an employee and do generally provide their services for a contractual period.
7. What is the importance of an independent contractor agreement in India?
Independent contractor agreement holds importance as it deals with outlining terms of engagement, his responsibilities, pay structure as well as other legal safeguards between both parties.
8. What is a PEO in India?
A PEO or Professional Employer Organization in India provides an integrated HR solution that encompasses payroll services, compliance, and employee benefit management. It allows companies to outsource their HR functions.
9. What should be included in an employee onboarding checklist for hiring in India?
An employee onboarding checklist includes document verification, training schedules, introduction to team members, compliance with company policies, and the completion of necessary HR forms.
10. What is the definition of an Employer of Record (EOR)?
EOR in India is essentially a company that is considered an official employer for tax purposes as well as legal compliance and for payroll, tax obligations, and employee liabilities for another company’s workforce.
11. What is the onboarding process with an EOR in India?
Normally, this would include employee onboarding, which would include the verification of documentation and the implementation of payroll in line with all India labor law regulations. All that the Employer of Record usually has to do with contracts and enrollment of employee benefits is basically pass along.
12. What is the difference between contractors and employees in India?
Employees in India enjoy a lot of benefits, including paid leave, provident fund, and gratuity, among others. Contractors are independent businesses and do not get such perks. Employees have to operate under labor laws, but contractors have greater flexibility when it comes to their own arrangements.
13. What are the costs of employment in India?
Basic salary, allowances, and bonus are all part of employment cost. Mandatory employee benefits include provident fund, gratuity, medical insurance and professional tax. Additional overhead costs will be office space and equipment to be considered by the employer.
14. How can I calculate the Cost to Company (CTC) for an employee in India?
The cost to company (CTC) in India is found by adding basic salary, allowances, bonuses, and employer contributions towards benefits such as provident fund and insurance.
15. What is a take-home salary calculator, and how does it work?
It is used by the employee to find his net salary from his gross salary. From the gross salary, there are deductions such as tax and other withholdings.
16. What are the options for comprehensive health insurance in India for remote teams?
There are options to provide comprehensive health insurance in India for remote teams. Group health insurance plans, individual health policies, and specialized expatriate plans are available.
17. How do we go about creating offer letters for remote employees in India?
To draft offer letters for remote employees in India, begin with the job title, responsibilities, salary details, and benefits. Do not forget to outline the terms of employment, working hours, and any remote working policies.
18. What should be included in the job title section of an offer letter?
The job title in an offer letter must reflect clearly the post being offered with designations or levels where the job post defines one’s status within an organization and helps create an expectation level about duties and the structure.
19. Is health insurance typically included in offer letters for remote employees in India?
Yes, health insurance is sometimes included in the offer letter for employees working from a distance in India.
20. Why is it important to detail job duties in an offer letter?
Detailing the duties in an offer letter is one of the most important things since it reveals expectations and responsibilities on both parts. This helps in equating employer and employee’s expectations, reduces misunderstandings, and works as a reference for any kind of performance evaluation.
21. What components should be included in the compensation package of an offer letter?
The offer letter should provide for compensation for the job and that too, mentioning it through salary, bonus, and benefits, such as health insurance and retirement plan. Also, the allowances for traveling and house as well as the equity option should be specified. Clearly mention whether the salary will be fixed or variable.
22. Why is an offer letter considered a formal document?
An offer letter in India is a very formal document because it does create a legal agreement between the employer and the employee.
23. How important is the starting date in an offer letter?
It marks the date from which the employee is supposed to start work, which is a very crucial point as it would allow both parties to align and prepare for the onboarding process.
24. What role does the hiring manager play in the offer letter process?
The hiring manager should often be involved in drafting the offer letter and its approval with regard to the terms as agreed on and as presented in accordance with the need of the team, encompassing job description and pay.
25. Should an offer letter specify if the position is for a full-time employee?
Of course, the job offer letter must clearly state whether the job is full time or part time, thereby eliminating any misunderstanding about working hours and employee responsibilities.
26. What key elements does an offer letter outline?
An offer letter should contain job title and description, compensation, start date, work location, benefits, and any terms of employment.
27. What is “at-will employment” and should it be included in the offer letter?
“At-will employment” is when either the employer or the employee can end the employment relationship at any given time, for any lawful cause.
28. How should the office location be addressed in an offer letter for a remote employee?
For telecommuters, the letter should state that the work will be done remotely and detail the employee’s home office or region of work.
29. How can an offer letter reflect the company culture?
This would then reflect upon the company culture with a welcome tone that would include such things as the team dynamic and workplace values, among other unique perks and programs that are resonating well with their mission and environment.
30. What does “at-will basis” mean in an employment context?
“At-will basis” in employment means that the job is not guaranteed for a specific period of time; either party can end the employment relationship at any time. It gives flexibility but also warns of a lack of job security.
31. What should be included in a formal job offer letter?
A formal job offer letter should include the following: job title and description, compensation details, start date, benefits, location of work, and other conditions of employment. All these should be communicated clearly.
32. Why are compensation details important in an offer letter?
Compensation details are important as they detail what the employee will earn and the benefits that are being provided, which reduces ambiguity and ensures fairness.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
