India: Appointment Of Employees


Overall, in the selection process of a suitable candidate for employment, CV/profile plays a crucial role in (i) creating the first impression about the person; (ii) screening the right person for the job and (iii) selecting the person who can be interviewed. Eligibility and suitability of a candidate for a specific post is identified after screening and interview. This process, though sounds simple, involves a lot of meticulous actions at every step and involves selection of only white collar employees. It is crucial to understand that the Indian laws make a distinction between an "employee" and a "workman." A workman is any person employed in an industrial premise where a manufacturing process is being carried on or in any kind of work that is connected with such manufacturing process and are not part of managerial or supervisory functions. Employees are the white collar involved in the managerial and supervisory functions and have a contractual basis of employment. The process of hiring an employee and a workman may be different and that solely depends on the skill sets and designation that the company is looking for.

This bulletin tries to explore the process involved in the appointment of employees, the crucial considerations that company should keep in mind while initiating the appointment process and finally, what crucial provisions should ideally be there in an appointment letter.

1. Modes of hiring

There are several modes by which companies hire employees. The most common is engaging head hunters who are given a mandate to provide the most suitable candidate for the vacant post in the company. The onus of verifying the credentials of the candidates is also on the head hunter firm before suggesting the candidate to the company. However, it is crucial that any such arrangement between the company and the head hunter firm should be on the basis of a written agreement. Such an agreement should specifically provide for, among other terms, the roles and responsibilities of the head hunter firm, the expectation of the company and consequences of the breach of the above expectations. Head hunting firms also offers the services of doing a complete verification of the information provided by the candidates. Though this would be useful for the company; however, it would always be prudent to cross examine the credentials at the time of interviews and retain copies of the qualification certificates, wherever necessary. Giving advertisements in newspapers is another classical way of hiring people. Currently, the companies are also engaging the services of job portals. While doing so, the scope of negotiating the agreement has become restricted and companies have to essentially enter into a clip wrap agreement to hire the services of the job portals. Irrespective of the mode opted by the company, it should keep the following points in considerations while recruiting employees:

(i) Providing precise job details – job description, key skill sets required, and responsibilities assigned to the said post;

(ii) Providing the exact qualifications and experience requisite for the said post;

(iii) Providing complete clarity on reporting requirements and place of work;

(iv) Highlighting the qualities that would suit the company;

(v) Doing a complete background check.

2. Recruitment

While recruiting employees, companies should ask them to fill a simple application form, which should consist of the following crucial ingredients for the purposes of screening:

(i) Details of education qualifications with specific scholastic performances;

(ii) Finding out the financial needs of the candidate by seeking information on dependents and responsibilities;

(iii) Medical examination would be conducted generally once the candidate signs the offer letter, but he/she can be asked to provide the medical condition;

(iv) Details of the experience of work;

(v) How active is the candidate on social networking sites and may be seeking the link for his professional networking site or any blog or personal website;

(vi) Seeking details of publications (depends on industry type);

(vii) Seeking references from the relevant field.

The second step would be conducting exhaustive interview both at the HR level as well as at the specific department level to confirm whether the candidate suits the profile and would be able to perform and do justice to the said post. The interview should be conducted after scrutinizing the profile/CV submitted by the candidate. The first thing to verify in the profile/CV is to confirm whether the applicant meets the minimum criteria in the specifications for qualifications and experience. It is also important to understand how the educational qualification and work experience of the candidate indicates achievements and progression. Gaps in job years and frequent hopping have been well covered or raise suspicion and whether it seems convincing. Finally, it is also vital to see how the candidate has presented the information, whether it is legible, correct in form and substance, misleading, coherent, verbose and careful and efficient drafting. This would suggest a lot about the personality traits of the candidate.

3. Appointment letters

An appointment letter sets out the terms and conditions of employment including designation, place of work, job profile, leave, termination, salary details, confidentiality, etc. A well drafted appointment letter is critical as it may contain elements to respond to the probable issues that may arise between employer and employee during the course of employment. The crucial elements of an appointment letter constitute the following:

i) Name and address of the employee, including the permanent address. This information can also be a part of the adult register maintained under the Factories Act;

(ii) Designation of the employee and place of work based on the organizational set up of the company and the classification prescribed in the standing order (which is certified by the relevant certifying authorities and such certified conditions prevail over the terms of contract of employment. So, conformity with the certified Standing Orders is critical while evaluating the conditions and terms of employment of the workmen). Transfer of employee should be clearly indicated as the right of the company;

(iii) Salary details with all allowances, bonus and benefits per the company policy and as statutorily available;

(iv) Probation period, its extension, confirmation and termination;

(v) Training period should also be mentioned with details regarding the nature of training to be provided;

(vi) Employment period with age of retirement;

(vii) Confidentiality clause restricting the employees not to divulge the confidential and proprietary information of the company to any third party, including the trade secrets, business plans, customer information and business or company information;

(viii) Termination clause setting out the various reasons for termination like, for breach of employment terms, indiscipline or non performance, etc;

(ix) Consequences of termination should clearly provide for the action steps to be completed immediately upon a termination/resignation of the employee, like handover of company property, etc;

(x) Medical examination by a registered medical practitioner is sometimes a prerequisite to confirming the employment in certain companies and that should be clearly provided for;

(xi) The appointment letter should prohibit double employment and also any personal practice or business;

(xii) IPR is an important clause and employer should ensure that there is a clause which assigns the IPR created/developed by the employee during the course of employment to the employer;

(xiii) The letter should also refer to the company policy document and the candidate should be made to agree to adhere to all the service conditions mentioned therein;

(xiv) The reference to the conduct of employee should be made and be clearly indicated that any misconduct/fraud during the course of employment would make the employee liable for suspension/dismissal;

(xv) The letter should put an obligation on the employee to inform the Company in case it has any conflict of interest in any area of operation or project and shall refrain from performing services for such conflicting area;

(xvi) The letter should also contain a clause asking employees to neither directly nor indirectly compete with the business of the company during the term of the employment.

The greatest resource of a company is its human resource. So, their selection process should be meticulously formulated and HR should be vigilant in scrutinizing every candidate vis-à-vis the job profile for the said post. Recruiting candidates of the desired type and selecting the most suited candidate calls for intelligent planning and preparation. The above processes contain the optimum action steps and the considerations that the organization should keep in mind while offering employment to candidates. The recruitment should not be hurried and company should exercise sufficient patience and diligence in the process. The right candidate may also become an asset for the organization in the days to come.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.