A clear job offer letter for a full-time hire: the role, the joining date, the annual CTC with a monthly breakdown, and the date by which the candidate should accept. Change the details and download it on your letterhead.
An offer letter tells a candidate that you want to hire them and on what broad terms. It is usually sent after the final interview and before the candidate resigns from their current job, so it needs to be clear enough for them to make that decision.
On its own, an offer letter is not the full employment contract. It becomes an agreement once the candidate accepts it, and the detailed terms are usually set out in the appointment letter they sign on joining.
Most confusion after joining comes from salary. State the annual CTC and show how it splits into monthly components, so the candidate can see what is fixed and what is the employer's contribution rather than take-home pay.
An offer letter records the terms you are offering. Once the candidate accepts it, it is generally treated as an agreement between you, but the detailed terms of employment usually sit in the appointment letter and your company's policies. For a dispute, take advice from a lawyer.
CTC (cost to company) is everything the employer spends on the employee in a year, including the employer's PF contribution and any allowances. Take-home pay is what reaches the bank account each month after the employee's PF, professional tax and income tax are deducted, so it is always lower.
A week is common. Give a specific date in the letter, so both sides know when the offer lapses if the candidate doesn't respond.
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