Learn how to create and send job offer letters for remote EOR employees in India with our step-by-step guide, ensuring compliance and clarity for new hires.
Lisa, a seasoned HR professional at a growing tech company in the U.S., has just finished a video interview with Raj, a brilliant software developer based in Bangalore. Excited about bringing Raj on board, she’s ready to send him an job offer letter but soon finds herself entangled in a web of questions. Who should send the job offer letter—the company or their India-based Employer of Record (EOR) partner? And how should she present Raj’s salary, ensuring it reflects the total cost to company (CTC) without causing any confusion?
Navigating these nuances can be tricky, especially for companies new to hiring remote talent in India. To help ease this process, we’ve crafted a step-by-step guide that will walk you through creating and sending offer letters with CTC for your remote employees in India. From clarifying responsibilities to breaking down salary components, this guide will ensure you’re well-prepared to make your new hires feel valued and informed from the get-go.
The client company (the overseas company that wants to hire the remote employee in India) works with the EOR service provider to identify potential candidates. The client company then directly conducts interviews and selects the candidate they want to hire.
Once a candidate is selected, the client company sends the first offer letter to secure the candidate from applying to other opportunities before the EOR partner can onboard them. Following this, the EOR service provider (Wisemonk) sends out the second offer letter on behalf of the client company:
In a remote EOR setup, the EOR is the official employer of record for tax and compliance purposes, while the client company manages the employee's day-to-day work. However, the job offer letter and employment contract make it clear the employee is specifically hired for and will be working on the client company's projects.
After the paperwork is completed, the EOR provider initiates the onboarding process, which typically involves:
The EOR service provider sends the official job offer letter and employment contract as the employer of record. But it is done in partnership with the client company, who remains very involved in selecting, onboarding and managing their remote EOR hires.
The main differences between an job offer letter and an employment/ appointment letter in India are:
So in essence, the job offer letter is the initial job proposal with basic terms, while the employment letter is the final, legally binding contract detailing all aspects of employment. The candidate can negotiate terms after the offer letter, but the employment letter is usually final once signed by both parties.
An job offer letter should be issued once a company has selected a candidate for a position. Typically, the candidate is expected to join the company within 1-90 days of receiving the offer. This timeframe allows both the employer and the new hire to complete any necessary preparations, such as finalizing notice periods at their current job and organizing relocation if needed.
Mentioning salary details in an job offer letter is crucial for transparency and setting clear expectations with the candidate. While not legally mandatory in India, including at least the annual CTC (Cost to Company) or broad compensation terms makes the offer more professional and complete. Key salary components to specify are monthly gross pay, basic salary, allowances like HRA, employer's contributions to PF and gratuity, and any variable pay or bonuses. The salary figure can be directly listed in the job offer letter body, shared as a detailed annexure, or conveyed by mentioning take-home pay and deductions. Some companies may only state the CTC without a breakup, verbally discuss salary, or include it later in the employment letter. However, the best practice is to provide a salary breakup in the job offer letter itself or as an attachment. It helps avoid misunderstandings, makes the offer binding, and allows the employee to enforce the compensation commitment if needed.
Other commonly included details:
The job offer letter should comprehensively state all-important employment terms while allowing room for further discussion in the subsequent employment letter. A well-drafted offer letter sets expectations and builds a strong foundation for the employer-employee relationship.
Click here to download the Job Offer Letter Template tailored for remote hiring in India.
Yes, you can resend an offer letter if needed. However, make sure to clearly communicate the reason for resending it and highlight any changes made. It's best to avoid making frequent changes to the offer letter as it may create confusion or mistrust with the candidate.
The standard notice period in India varies, but it is usually around 30 to 90 days for senior-level employees and 15 to 45 days for other employees. The exact notice period is determined by the employment contract, company policy, and industry norms.
It's a good practice to include a reference to the employee handbook and key company policies in the offer letter. You can mention that the candidate is expected to adhere to the company's code of conduct and other relevant policies. The detailed policies can be shared with the employee during the onboarding process.
Yes, an employer can revoke an offer letter, but it must be done carefully and with consideration of legal and ethical implications. Offer letters are typically revoked when the conditions outlined, such as background checks or reference verification, are not met by the candidate or if there are unforeseen changes in the organization's hiring needs.
To revoke an offer letter:
The key is to handle the revocation process professionally and sensitively, considering the impact on the candidate and the organization's reputation. Having clear conditions in the offer letter and conducting thorough background checks before making the offer can help minimize the need for revocation later.
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To create offer letters for remote employees in India, include key details like job title, compensation package, and starting date. Ensure compliance with local laws and coordinate with your EOR partner.
The job title section of an offer letter should clearly specify the position the employee is being hired for, ensuring there is no ambiguity about their role.
Yes, health insurance details should be included in offer letters to inform the employee about the coverage and benefits they will receive.
Detailing job duties in an offer letter helps clarify the employee’s responsibilities and expectations, ensuring both parties have a clear understanding of the role.
The compensation package should include salary, bonuses, benefits, and any other financial incentives. It provides a complete picture of the employee’s total remuneration.
An offer letter is considered a formal document because it officially outlines the terms and conditions of employment, setting the foundation for the employment contract.
The starting date is crucial as it specifies when the employee is expected to begin work, helping both the employer and employee plan accordingly.
The hiring manager typically oversees the recruitment process, ensures the offer letter accurately reflects the job details, and communicates the offer to the candidate.
Yes, the offer letter should specify if the position is for a full time employee to clarify the employment status and expected work hours.
An offer letter outlines key elements such as the job title, compensation package, job duties, starting date, and other essential employment terms.
At will employment" means either the employer or employee can terminate the employment relationship at any time. This clause should be included if applicable to your company’s policy.
For remote employees, the offer letter should specify the remote nature of the job and mention any expectations regarding visits to the office location, if applicable.
An offer letter can reflect company culture by including a brief description of the company’s values, mission, and work environment, giving the candidate an idea of what to expect.
"At will basis" means that either the employer or the employee can terminate the employment relationship at any time without cause or notice, depending on local laws.
A formal job offer letter should include the job title, job duties, compensation details, starting date, and terms of employment. It should be a comprehensive outline of the job offer.
Compensation details are crucial as they inform the candidate of their salary, bonuses, benefits, and any other financial incentives, ensuring transparency and setting clear expectations.
