What should an Indian offer letter include?

At minimum: the candidate's name and role, compensation in INR, start date, employment type, and the governing law. A properly protective offer letter also includes IP assignment, confidentiality, a non-solicitation clause, probation period with notice, and POSH and DPDP Act acknowledgements. Firmly's template covers all of these by default.

Is an offer letter legally binding in India?

A signed offer letter is a contract under the Indian Contract Act, 1872. It is binding on both parties for the terms it specifies — compensation, start date, notice period, IP assignment, and so on. An unsigned offer letter is not binding, which is why getting a signed copy back matters.

Can I use the same offer letter template for interns and full-time employees?

No — and this is one of the most common and expensive mistakes. An intern classified as a full-time employee can trigger retrospective PF, ESI, and Standing Orders liability in a labour audit. Firmly generates different documents for different employment types to keep each engagement legally clean.

Do I need a lawyer to draft an offer letter?

For a standard hire at an early-stage startup, Firmly's templates are a practical starting point. For complex situations — equity plans, senior executive packages, or international employees — having a lawyer review the final document is worth it. Firmly handles the standard 95% so they only spend time on the unusual 5%.

Are non-compete clauses enforceable in India?

Post-employment non-competes are generally void under Section 27 of the Indian Contract Act. Firmly doesn't include them. What Firmly does include — non-solicitation of employees and customers, and confidentiality that survives termination — are the clauses Indian courts do uphold.

India-specific

An offer letter template India actually needs.

Most templates online are copied from US startups. Ours are built for Indian law — the clauses that protect you, without the ones that don't hold up in court.

Quick answer

A complete Indian offer letter template must cover: candidate name, role, compensation in INR, start date, offer expiry, IP assignment, confidentiality, probation period, and POSH/DPDP Act clauses. Without IP assignment, work belongs to the employee by default under the Indian Copyright Act.

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What's in the template

What sections does a complete Indian offer letter need?

Identity & role

✓Candidate name and address
✓Job title
✓Employment type (full-time, intern, contract)

Compensation

✓Annual CTC or monthly stipend in INR
✓ESOP grant value with vesting schedule and cliff
✓Variable pay or joining bonus (custom section)

Timeline

✓Start date
✓Offer expiry date
✓Probation period with notice during probation
✓Duration for interns and contractors

Legal protections

✓IP assignment (your code is yours from day one)
✓Confidentiality during and after employment
✓Non-solicitation with configurable cooling-off period
✓Exclusivity / no-moonlighting clause

Compliance

✓Prevention of Sexual Harassment (POSH) Act
✓Digital Personal Data Protection (DPDP) Act 2023
✓Governing law and jurisdiction (Bengaluru default)
✓Code of conduct reference

Custom sections

✓Add any term as a free-text section
✓Save templates for reuse across all offers
✓Toggle any clause on or off per individual offer

What most templates get wrong

What mistakes in offer letter templates lead to disputes?

Common mistake

Missing IP assignment

How Firmly handles it

Under the Indian Copyright Act, code written by your developer belongs to them unless assigned in writing. Firmly's template includes explicit IP assignment and work-for-hire language.

Common mistake

Post-employment non-compete

How Firmly handles it

Section 27 of the Indian Contract Act voids restraint-of-trade clauses after employment ends. Including one gives false confidence. Firmly uses non-solicitation and confidentiality instead — clauses courts actually uphold.

Common mistake

US at-will termination language

How Firmly handles it

Indian courts don't recognise at-will employment. Firmly's template includes probation with notice during probation, and a standard post-probation notice period under Standing Orders.

Common mistake

Intern offer that reads like employee contract

How Firmly handles it

Misclassified interns can trigger retrospective PF, ESI, and labour law liability. Firmly generates separate, legally distinct documents for interns and employees.

How it works

From blank page to signed offer in under 3 minutes.

Set up your company

Name, logo, address, signatory — once. Saved for every document after.

Enter the candidate's details

Name, role, compensation, start date, employment type. Takes about 60 seconds.

Pick your clauses

Toggle NDA, IP assignment, POSH, DPDP, probation, and more. Add custom sections if needed.

Draft and send

Preview the letter, make any edits, and email the PDF. The candidate signs and replies. Done.

FAQ

Common questions

: At minimum: the candidate's name and role, compensation in INR, start date, employment type, and the governing law. A properly protective offer letter also includes IP assignment, confidentiality, a non-solicitation clause, probation period with notice, and POSH and DPDP Act acknowledgements. Firmly's template covers all of these by default.
: A signed offer letter is a contract under the Indian Contract Act, 1872. It is binding on both parties for the terms it specifies — compensation, start date, notice period, IP assignment, and so on. An unsigned offer letter is not binding, which is why getting a signed copy back matters.
: No — and this is one of the most common and expensive mistakes. An intern classified as a full-time employee can trigger retrospective PF, ESI, and Standing Orders liability in a labour audit. Firmly generates different documents for different employment types to keep each engagement legally clean.
: For a standard hire at an early-stage startup, Firmly's templates are a practical starting point. For complex situations — equity plans, senior executive packages, or international employees — having a lawyer review the final document is worth it. Firmly handles the standard 95% so they only spend time on the unusual 5%.
: Post-employment non-competes are generally void under Section 27 of the Indian Contract Act. Firmly doesn't include them. What Firmly does include — non-solicitation of employees and customers, and confidentiality that survives termination — are the clauses Indian courts do uphold.

Last updated: May 8, 2026

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