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Free letter template · Word

Acting Responsibility Letter

An acting responsibility letter appoints an employee to perform the duties of a higher or vacant post for a limited period, for example while the incumbent is on long leave or until a permanent appointment is made. It sets out the period, the authority delegated and any acting allowance.

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[Company Logo][Company Name]

ACTING RESPONSIBILITY LETTER

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Work Location]

Subject: Acting Responsibility as [Acting Position]

Dear [Employee Name],

Owing to [reason, e.g. the extended leave of the present incumbent / the vacancy arising from the resignation of the previous post holder], the management has decided to entrust you with the responsibilities of [Acting Position] in an acting capacity, with effect from [Start Date] until [End Date] or until further orders, whichever is earlier.

During this period:

  1. You will discharge the duties of [Acting Position] in addition to, or in place of, your present duties as decided by [Reporting Manager].
  2. You will report to [Reporting Manager] for all matters relating to the acting role.
  3. You are authorised to approve expenses and purchase requests up to ₹[Amount] per transaction and to sign [documents, e.g. leave approvals and attendance records]. Matters above this limit must be referred to [Reporting Manager].
  4. You will be paid an acting allowance of ₹[Amount] per month for the period of acting responsibility, subject to applicable deductions.
  5. Your substantive designation, grade and other terms of employment remain unchanged.

This arrangement is temporary and does not by itself confer any right to promotion or to the post of [Acting Position]. On completion of the period you will revert to your substantive role, and the acting allowance and delegated authority will cease automatically.

We are confident that you will handle this responsibility well. Please sign the duplicate copy of this letter in acknowledgement.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Accepted by
[Employee Name]
Date: [Date]

What this template includes

  • Name of the post being held in acting capacity
  • Start date and end date or the event that ends the arrangement
  • Financial and approval limits that are delegated
  • Acting or officiating allowance, if any
  • Clear statement that it is not a promotion
  • Reversion to the substantive role at the end

When to use it

  • A branch manager goes on maternity or medical leave and a deputy must act
  • A department head resigns and a replacement is still being hired
  • A plant or unit head is deputed elsewhere for some months
  • You want to test a high-potential employee in a bigger role before a promotion decision

How to customise this template

  1. 1Copy approval limits from your delegation of authority matrix rather than writing new ones
  2. 2Delete the allowance clause if no allowance is paid
  3. 3Name who the acting holder reports to during the period
  4. 4Inform bankers, vendors or regulators if signing authority changes

HR tips

  • Fix a review date so acting arrangements do not drag on indefinitely
  • Pay any acting allowance through payroll so PF and tax are applied correctly
  • Recognise the acting period in the next appraisal
  • Withdraw signing authority promptly when the arrangement ends

For HR & hiring managers

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Frequently asked questions

What is an acting responsibility?+

It is a temporary arrangement where an employee performs the duties of another, usually higher, post until the regular holder returns or a permanent appointment is made.

Is an acting role the same as a promotion?+

No. The employee keeps their substantive designation and grade and reverts to it when the arrangement ends, unless a separate promotion letter is issued.

Is acting allowance taxable?+

Yes. An acting or officiating allowance paid through payroll is part of salary income and taxed accordingly.