Is an Appointment Letter Mandatory for Every Employee Under the New Labour Code?

Yes. Under the new labour code, every employer covered by the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 must issue a written appointment letter to every employee. Section 6 of the OSH Code makes this a legal duty, and Rule 6 of the OSH (Central) Rules, 2026 sets the format. The duty covers permanent staff, fixed-term employees, probationers, daily-rated workers and contract labour. Employees who joined before the code came into force and never received a letter also need one.

Many small and mid-size companies in India still hire on a verbal offer or a WhatsApp message. Under the old laws that was a gap. Under the codes it is a violation, and a missing appointment letter is one of the first things an inspector checks.

What does Section 6 of the OSH Code say?

Section 6 lists the duties of an employer. One of them is to issue a letter of appointment to every employee on appointment, containing the information that the appropriate Government prescribes. The proviso deals with existing staff: where an employee had not received an appointment letter when the code started, the employer had to issue one within three months of the code’s commencement. With the codes in force from 21 November 2025, that window closed on 21 February 2026.

If your company missed that date, the right move now is to issue letters to all remaining employees immediately, dated currently and recording the actual date of joining. Backdating a letter creates a separate problem in any dispute.

Who needs an appointment letter?

The OSH Code applies to establishments employing 10 or more workers, and to mines and docks with any number of workers. Inside those establishments, the letter is needed for:

• Permanent employees
• Fixed-term employees
• Probationers and trainees on the payroll
• Daily wage and casual workers
• Contract labour (the contractor, as their employer, issues the letter)

For contract workers, the principal employer should not assume the agency has done this. Ask for copies of the contractor’s appointment letters during your monthly contractor compliance check. Our contract labour compliance team runs exactly this verification for principal employers.

What must the appointment letter contain?

A one-line offer email does not meet the requirement. Under Rule 6 of the OSH (Central) Rules, 2026, the prescribed format records:

• Name and identification details of the employee and the employer
• Designation and category of work
• Type of employment: regular, fixed-term or contractual
• Skill category of the worker
• Date of commencement of employment
• Wages, allowances and the wage period
• Whether PF and ESI benefits apply
• Maternity benefits available under the Code on Social Security, for women employees

The letter is signed by the employer, physically or digitally. In the final central format, the employee’s Aadhaar number is optional.

State governments will prescribe their own formats for establishments under their control. Maharashtra’s draft OSH rules, for example, use a Form 6. Until your state notifies its rules, a letter that covers every item in the central format is the safest base.

Why the wage section of the letter needs care

The appointment letter is now the first written record of an employee’s wage structure. Under the Code on Wages, basic pay, dearness allowance and retaining allowance must form at least 50% of total remuneration. If the letter shows a CTC split where allowances exceed half, the excess is added back to wages for PF, gratuity and bonus. An inspector or a claims officer will read the letter that way.

Before issuing letters in bulk, check the salary breakup with your payroll team. G&CC’s payroll processing service and Code on Wages consultants can rework structures so the letter and the payslip match.

What happens if an employer does not issue appointment letters?

The OSH Code has no separate penalty clause for Section 6, so the general penalty provision in Section 94 applies to the contravention. The bigger cost comes in disputes. Without a letter, an employee may struggle to prove employment, and the employer loses its own proof of the agreed terms, designation and wage structure. In gratuity claims, termination disputes and ESIC or PF inquiries, the absence of a letter usually works against the employer.

Common mistakes we see in audits are listed in our post on labour law compliance mistakes in India in 2026.

A simple plan to close the gap

1. Pull the employee master and mark everyone without a signed appointment letter on file.
2. Do the same for contract workers, by contractor.
3. Prepare templates for each employment type: permanent, fixed-term, probation and casual.
4. Check wage breakups against the 50% rule before printing.
5. Issue letters, collect acknowledgements and store signed copies with the employee register.
6. Add the letter to your joining checklist so no new hire starts work without one.

Our establishment compliance team can draft templates, review contractor records and maintain the registers alongside the letters.

How G&CC helps

Gupta & Company Consultants has handled labour compliance for employers since 2004 from offices in Janakpuri, New Delhi and Sector 33, Gurugram. As labour law consultants, we draft OSH-compliant appointment letter formats, audit existing HR files and set up joining checklists for factories, offices and construction sites. If you are looking for a labour law consultant in Gurgaon to check your documentation before an inspection, our compliance audit covers appointment letters, registers and returns in one review.

Frequently Asked Questions

Is an appointment letter mandatory under the new labour code?

Yes. Section 6 of the OSH Code, 2020 requires every employer to issue an appointment letter to every employee, and Rule 6 of the OSH (Central) Rules, 2026 prescribes its format.

Do existing employees also need an appointment letter?

Yes. Employees who had no letter when the code began on 21 November 2025 were to receive one within three months, by 21 February 2026. Employers who missed this should issue letters now.

Who issues the appointment letter to contract workers?

The contractor, as the employer of the contract labour, issues the letter. The principal employer should verify copies during contractor compliance checks.

Is an offer letter enough?

Usually not. The appointment letter must carry specific details such as type of employment, skill category, wages, wage period and social security coverage. A short offer email will not cover these.

Does a small company need to issue appointment letters?

Establishments employing 10 or more workers fall under the OSH Code and must comply. Even below that number, a written letter protects the employer in any later dispute.

Talk to Gupta & Company Consultants

Want appointment letters that meet the new labour code format? Contact our team.

Head Office: B2B/3, Janakpuri, New Delhi-110058
Phone: +91-8744079902
Email: contact@guptaconsultants.com