Dear friends,
Simply put, the question here is in a contract of employment whether the offeree, i.e., the employee, can later repudiate his/her acceptance already communicated. The answer can only be an emphatic "NO" with reference to the Indian Contract Act, 1872. Only such a legal position enables the offeror, i.e., the prospective employer, to sue for damages already mentioned and accepted. Whether it is reasonable is a question to be decided by the Court only. Similarly, the prospective employee can simply ignore it under the impression that "nothing ever happens" and accept a more beneficial offer that comes later. But everyone should be law-abiding!
From India, Salem
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6185Simply put, the question here is in a contract of employment whether the offeree, i.e., the employee, can later repudiate his/her acceptance already communicated. The answer can only be an emphatic "NO" with reference to the Indian Contract Act, 1872. Only such a legal position enables the offeror, i.e., the prospective employer, to sue for damages already mentioned and accepted. Whether it is reasonable is a question to be decided by the Court only. Similarly, the prospective employee can simply ignore it under the impression that "nothing ever happens" and accept a more beneficial offer that comes later. But everyone should be law-abiding!
From India, Salem
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It is is better to personally meet the concerned HR Head and share your concerns with him. A dialogue is much better solution than an escape route. All the best...
From India
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From India
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(Fact Check Failed/Partial)-The user reply is not entirely accurate. It's important to be aware of legal implications in breach of contract situations. Seeking legal advice is advisable.
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Is this a real query? It has been observed that the very same query, verbatim (even with the same errors), had been posted in the thread https://www.citehr.com/470887-can-co...candidate.html in a highly informative discussion initiated by Swati.
Hi, I was recently selected for an organization where the Offer Letter contained a clause regarding Breach of Contract. It stated that if I do not join, I will have to pay 8% of the annual CTC. I accepted the job because I liked the role, but I did express my disagreement with the clause. As a candidate, I wanted to explore other options that aligned with my career path as well. However, they did not agree and mentioned that the clause was included because many individuals fail to inform or report on the date of joining without notice. Now, three weeks before my joining date, I wish to inform them that I want to decline the offer as I received an offer from my dream company yesterday.
My question is, if they do not agree and I am unable to pay the amount, can they file a case against me? This may be considered unprofessional, but I signed the agreement because at that time, I did not have any other offers. I had been waiting for a call from this other company, and now that I have it, I do not want to miss the opportunity.
Regards,
Jobcandidate
14th December 2015
From India, Gurgaon
From India, Kochi
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Hi, I was recently selected for an organization where the Offer Letter contained a clause regarding Breach of Contract. It stated that if I do not join, I will have to pay 8% of the annual CTC. I accepted the job because I liked the role, but I did express my disagreement with the clause. As a candidate, I wanted to explore other options that aligned with my career path as well. However, they did not agree and mentioned that the clause was included because many individuals fail to inform or report on the date of joining without notice. Now, three weeks before my joining date, I wish to inform them that I want to decline the offer as I received an offer from my dream company yesterday.
My question is, if they do not agree and I am unable to pay the amount, can they file a case against me? This may be considered unprofessional, but I signed the agreement because at that time, I did not have any other offers. I had been waiting for a call from this other company, and now that I have it, I do not want to miss the opportunity.
Regards,
Jobcandidate
14th December 2015
From India, Gurgaon
From India, Kochi
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(Fact Check Failed/Partial)-The user reply is incorrect. The company can take legal action for breach of contract if the candidate fails to pay the specified amount. Ref: Indian Contract Act, 1872.
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Dear Friend,
1. Please do not worry about the offer if it is conditional, e.g., subject to being medically fit or subject to background verification. If the offer is unconditional, then you may face a legal problem in the future.
2. Let the company go ahead and file a suit against you—so what? Contest it in the court of law. It's not a big deal. Employers often try to intimidate. They cannot hold your future in the balance.
3. If the offer is conditional, you can refuse to accept it and proceed with the new offer. Please check if your offer mentions that it can be withdrawn even after acceptance; this would work in your favor.
4. In the future, before accepting any offer, please carefully review the offer letter, seek clarifications, and only then accept.
5. Every employer may believe they are the best in the world with the best service conditions, but this is often a myth for the majority of employers.
Warm Regards,
Bharat Gera
HR Consultant
9322404765
From India, Thane
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1. Please do not worry about the offer if it is conditional, e.g., subject to being medically fit or subject to background verification. If the offer is unconditional, then you may face a legal problem in the future.
2. Let the company go ahead and file a suit against you—so what? Contest it in the court of law. It's not a big deal. Employers often try to intimidate. They cannot hold your future in the balance.
3. If the offer is conditional, you can refuse to accept it and proceed with the new offer. Please check if your offer mentions that it can be withdrawn even after acceptance; this would work in your favor.
4. In the future, before accepting any offer, please carefully review the offer letter, seek clarifications, and only then accept.
5. Every employer may believe they are the best in the world with the best service conditions, but this is often a myth for the majority of employers.
Warm Regards,
Bharat Gera
HR Consultant
9322404765
From India, Thane
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(Fact Check Failed/Partial)-The user reply contains some inaccuracies. It is essential to consider the legal implications of breaching a contract. It is advisable to seek legal counsel and handle the situation professionally.
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If prospective employee is liable to compensate the company for not joining,the company should compensate the candidate if it cancels an offer. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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(Fact Check Failed/Partial)-The user reply is incorrect. According to Indian contract law, if an employee breaches a contract, the employer can seek damages but cannot force the employee to pay a specific amount unless it represents a genuine pre-estimate of damages. The suggestion of reciprocal compensation is not a standard practice in such cases.
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There is no binding on somebody unless and until he/she becomes an employee. Hence, no action could be taken in such a case if the person has initially accepted the offer but later expressed his denial on account of some reasons.
Rgds
Piyush
From India, Varanasi
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Rgds
Piyush
From India, Varanasi
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(Fact Check Failed/Partial)-The user reply is incorrect. According to Indian Contract Act, if a candidate accepts an offer and later declines before joining, the company can seek damages for breach of contract. Supreme Court has upheld such clauses in employment contracts.
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Hello Concerned,
This routine habit of people accepting the job offer later and making excuses near the joining date, such as having a better opportunity, often leads to them not picking up phone calls from HR. When an employee accepts the offer letter, it is their own decision; no one forces them.
It is essential to consider that companies invest a significant amount of money and time in shortlisting and recruiting an employee. When the employee agrees to join after a 1 or 2-month notice period, the company is assured that the position will be filled. However, if the employee backs out near the joining date, it creates the same recruitment process all over again.
There is a misconception that companies always shortlist multiple candidates when they only need one, which is not true every time. Is this behavior not unprofessional? What if the company denies the employee near the joining date?
These days, it seems that ethics are lacking. I am not implying that the employee is solely at fault; some companies also exhibit poor behavior. In my opinion, employees should carefully consider before accepting the offer letter and once accepted, they should honor their commitment.
From India, Ludhiana
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This routine habit of people accepting the job offer later and making excuses near the joining date, such as having a better opportunity, often leads to them not picking up phone calls from HR. When an employee accepts the offer letter, it is their own decision; no one forces them.
It is essential to consider that companies invest a significant amount of money and time in shortlisting and recruiting an employee. When the employee agrees to join after a 1 or 2-month notice period, the company is assured that the position will be filled. However, if the employee backs out near the joining date, it creates the same recruitment process all over again.
There is a misconception that companies always shortlist multiple candidates when they only need one, which is not true every time. Is this behavior not unprofessional? What if the company denies the employee near the joining date?
These days, it seems that ethics are lacking. I am not implying that the employee is solely at fault; some companies also exhibit poor behavior. In my opinion, employees should carefully consider before accepting the offer letter and once accepted, they should honor their commitment.
From India, Ludhiana
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(Fact Check Failed/Partial)-The user's reply is incorrect. The legality of such clauses varies by jurisdiction. In many places, penalizing an employee for not joining is not enforceable.
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Yes, you can cancel the offer, but you need to communicate your intention of canceling the offer and at the same time put a counteroffer with conditions. Once you put a counteroffer, the original offer is null and void.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is incorrect. According to contract law, a counteroffer does not automatically nullify the original offer unless accepted by the employer. The original offer remains valid until a new agreement is reached.
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Inform the recruiter about your cancellation and proceed towards your dream job. The company will not waste their time and money by filing a case. You have not accepted the offer on any bound paper or in any court document. Mainly, offer letters do not show the offered salary, so how can they prove your CTC.
From India, Solan
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From India, Solan
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. The clause in the Offer Letter regarding the Breach of Contract is legally binding. The company can take legal action if the employee fails to honor the agreement, even if the CTC was not specified. It is advisable to communicate openly with the organization and seek an amicable resolution.
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Hi,
Candidates accept our offer but insist on an offer letter being issued before the joining date so that they can quit their earlier job or stop their job search. In all good faith, HR issues an offer. However, candidates sometimes use the offer letter to leverage a higher offer. Alternatively, they may join to avoid a break in service while searching for a new job or join after a break in service to show that they are employed, obtain 1-2 paystubs, and then quit abruptly without serving the notice period. In both scenarios, HR is back to square one. It appears that ethical considerations differ between being employees and being employers.
JS
From India, Chennai
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Candidates accept our offer but insist on an offer letter being issued before the joining date so that they can quit their earlier job or stop their job search. In all good faith, HR issues an offer. However, candidates sometimes use the offer letter to leverage a higher offer. Alternatively, they may join to avoid a break in service while searching for a new job or join after a break in service to show that they are employed, obtain 1-2 paystubs, and then quit abruptly without serving the notice period. In both scenarios, HR is back to square one. It appears that ethical considerations differ between being employees and being employers.
JS
From India, Chennai
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(Fact Check Failed/Partial)-The user reply does not address the specific legal concerns raised in the original post regarding the breach of contract clause and potential consequences. It focuses more on candidate behavior. Kindly review the legal implications of the situation.
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. According to the Indian Contract Act, 1872, an employee can repudiate their acceptance of a job offer, subject to any contractual clauses. The employer can potentially sue for damages. However, the decision on reasonableness and legal consequences would be determined by the court.