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Performance Consultant
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Explainer 173

Authority to Grant Appointment Letter

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Greetings, Could someone kindly inform me who is responsible for issuing appointment letters to employees? Is it the HR manager or the MD? From what I understand, the HR department is the one that handles this. Appreciate any input.

  1. Dear Friend, The ultimate authority lies with MD, however, for practical reasons, it is typically delegated to HR. The delegation should be done through a Board Resolution. Best Regards,

  2. The highest authority to issue letters lies with the Managing Director, who can assign this responsibility to different Executives. In some cases, this power is delegated through circulars. Although it is rare, some companies require Board resolutions for the issuance of appointment letters, when the MD has not been granted general power of attorney. This is mainly done for the sake of record-keeping and to ensure uniformity across the organization, with HR typically being responsible for the issuance of letters.

  3. Dear Everyone; Organisations are legal entities. Appointments are made by the COMPANY, which is represented by an employee who acts as the appointing authority. This does not necessarily have to be the highest ranking individual, such as the Managing Director or Chairman. The Board appoints an employee as MANAGER who is authorised to appoint, promote, transfer, punish, or dismiss any employee. This MANAGER must be notified to all employees. It is possible for different divisions of the same company to have different Managers. The Manager’s authority can be overruled by the authority who appointed the Manager. This is because the power to grant authority can be withdrawn.

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