Your offer letter: what to check before you sign

The offer letter arrives at 9 pm with a line from HR: "Please sign and revert by tomorrow." It is four pages long, the CTC looks bigger than you hoped, and you are tempted to sign before anyone changes their mind.

Take one evening instead. Most bad surprises in a first job (an in-hand salary ₹6,000 below what you expected, a ₹2 lakh bond you didn't notice, a three-month notice period, a "variable" that is never paid) were sitting in the offer letter all along. This checklist goes clause by clause, with what normal looks like in India and what to ask about.

First: is the offer real?

Before reading the terms, check the sender. A genuine offer comes from the company's email domain (or a known recruitment platform), names a real entity with an address, follows at least one real interview, and never asks you to pay anything. A request for a "joining fee", "laptop deposit", "training fee" or "background verification charge" means it is a scam, however professional the letter looks. Paste anything doubtful into our job check tool.

Also check which company is employing you. In agency and contract roles, the employer on paper may be a staffing firm, not the brand you interviewed with. That's legitimate, but you should know it: your PF, ESI, payslips and notice period will all come from the staffing firm. Our guide to contract jobs through agencies covers what to ask.

The money: CTC is not your salary

CTC (cost to company) adds up everything the employer spends on you in a year. Your in-hand salary is what's left after deductions, and only the fixed monthly part arrives every month.

Ask HR for a monthly break-up with deductions shown, or for your expected in-hand amount. A good rule of thumb: if your CTC includes employer PF, gratuity and a variable, your fixed in-hand may be well below CTC divided by twelve. Our article on the Labour Codes and your in-hand salary explains why PF and gratuity changed from November 2025, and the salary calculator gives you a quick estimate.

Two rules worth knowing:

• Under the Labour Codes, in force since 21 November 2025, "wages" for PF and gratuity must be at least half of total pay; allowances above 50% are counted back in. Structures that kept basic pay very low to cut PF are being redone, which can lower in-hand pay but raise your PF and gratuity.
• Since 17 September 2026, PF is compulsory for employees earning wages up to ₹25,000 a month (the ceiling was ₹15,000). Above that, some employers still offer PF only on a capped amount; ask which applies to you.

Probation and confirmation

Most Indian offers set a probation of three to six months, sometimes extendable. Check:

• Length, and whether it can be extended, and how many times.
• Notice during probation. Often shorter (a week to a month). Know it in case the job is not what was promised.
• What changes on confirmation: some benefits, leave encashment or the full notice period start only after confirmation.

Notice period

Notice periods in India range from 15 days to three months. Ninety days is now common in IT, banks and consulting. A long notice period makes your next move harder, because many employers want people who can join within 30 days.

• Read whether you can pay instead of serving notice (buyout), and how the amount is calculated (basic or gross).
• Check whether leave can be adjusted against notice.
• Look for anything that lets the employer withhold your relieving letter or final dues beyond what's normal.

On exit, the Code on Wages requires your wages to be paid within two working days of your last day when you resign. Other parts of the final settlement can take longer, so ask HR how they handle it. Our notice period guide helps when you're on the other side of this.

Bonds, training costs and repayment clauses

Look for any clause that says you must stay for a minimum period or repay an amount if you leave early: service agreements, training bonds, joining-bonus clawbacks, relocation repayment.

In May 2025 the Supreme Court upheld a bank's minimum-service clause that required three years or ₹2 lakh, holding that a restriction that operates during employment is not a restraint of trade. So assume a clearly written bond can be enforced, especially if the amount is reasonable and tied to a real cost such as training. Our job bond guide explains what makes a bond reasonable and how to negotiate one.

Never hand over original certificates as security. Employers can see your originals at verification; they should not keep them.

Non-compete, confidentiality and IP

• Non-compete after you leave: under section 27 of the Indian Contract Act, agreements that stop someone from carrying on a lawful profession are void, and Indian courts have generally refused to enforce non-competes that apply after employment ends. You'll still see them in offers; they matter less than they look, but don't sign away your field casually.
• Non-solicitation: a promise not to poach clients or colleagues for a period after leaving. More often treated as reasonable.
• Confidentiality and intellectual property: standard. Read what counts as company IP if you do side projects or freelance work.
• Moonlighting: many offers ban outside work. If you tutor, freelance or run a small business, ask before you sign.

Joining date, location and role

Check that the letter states your designation, work location (and whether you can be transferred), working days and shift, and the joining date. If you're still serving notice elsewhere, ask for a joining date that respects it, in writing. Watch for clauses that say the offer lapses if you don't join by a date, and for conditions such as passing a background check or clearing your final exams.