Employee Onboarding in India: 2026 Joining Formalities Checklist

Employee joining formalities checklist

Documents to collect from a new employee

• PAN and Aadhaar.
• Bank details for salary credit (a cancelled cheque or bank letter).
• Existing UAN, if the employee has worked in a PF-covered job before.
• Relieving letter and salary details from the previous employer, for TDS in the current year.
• Education and identity proofs for background checks.
• Nominee details for PF and gratuity.

Documents to give the new employee

• A signed appointment letter with role, salary structure, working hours, leave and probation terms.
• The employee handbook or policy summary: leave, code of conduct, POSH and grievance contacts.
• PF UAN and ESIC details once registration is done.
• Logins for email, HRMS and payroll self-service.

The statutory part, explained

Appointment letter

Since 21 November 2025 an appointment letter is mandatory for every worker, including contract staff. An offer email or a verbal offer is not enough. Keep a signed copy on file.

Provident fund (PF)

If your establishment has 20 or more employees and is registered with EPFO, every new hire whose PF wages (basic plus DA) are up to ₹25,000 a month must be enrolled from the joining date. Ask for the existing UAN first: generating a fresh one splits the employee’s PF history. Use our PF wage ceiling guide for the September 2026 change.

ESIC

If your establishment is covered by ESIC (generally 10 or more employees in a notified area), register every new employee earning up to ₹21,000 a month on the ESIC portal as soon as they join. Late registration leads to queries from ESIC, so do it in the joining week, not at the next payroll.

Tax and professional tax

Collect the employee’s tax regime choice and investment declaration for TDS, and set up professional tax for the state where they work. PT rules and slabs differ by state.

Fixed-term hires

Fixed-term employees get the same benefits as permanent staff, and they become eligible for gratuity after one year instead of five. Write the fixed term and benefits clearly into the appointment letter.

A 30-60-90 day onboarding plan for small teams

• First 30 days: learn the product, customers and tools; ship one small piece of real work; weekly check-ins with the manager.
• Days 31 to 60: own a defined area of work; get feedback from peers; close any training gaps.
• Days 61 to 90: work independently against agreed goals; formal review and probation decision.

Common onboarding mistakes

• No signed appointment letter, or one that does not match the salary actually paid.
• Creating a new UAN instead of using the employee’s existing one.
• Leaving ESIC or PF registration until the next payroll run.
• Treating long-term contractors like employees without the paperwork or benefits.
• Paperwork spread across the first week instead of one organised session.

Onboarding remote employees

For a remote hire, record the actual work location in the appointment letter. It decides which state’s professional tax and shops and establishments rules apply, so check this before the first payroll.

Onboarding metrics worth tracking

• Time to productivity: days from joining to the first piece of real work delivered.
• 90-day attrition: the share of new hires who leave within three months.
• Paperwork completion: the share of hires with every joining form done in week 1. Aim for all of them.
• New hire feedback: a short survey at day 30.

Frequently asked questions

What are the joining formalities for a new employee in India?

A signed appointment letter, PF enrolment if your establishment is covered, ESIC registration for staff earning up to ₹21,000 a month, the tax and PT set-up for payroll, and collecting ID, bank and previous-employment documents.

Is an appointment letter mandatory in India?

Yes. Since the Labour Codes came into force on 21 November 2025, every worker must be given an appointment letter.

Which new employees must be enrolled in PF?

In a PF-covered establishment, every employee whose PF wages are up to ₹25,000 a month, from the date of joining.

What documents should a new employee submit on joining?

PAN, Aadhaar, bank details, existing UAN if any, previous employer’s relieving letter and salary details, education and identity proofs, and nominee details.

Sources: PIB, “Implementation of the four Labour Codes” (21 November 2025); EPFO FAQs on the revised wage ceiling (September 2026); esic.gov.in. General information, not legal advice.