An offer letter is not a contract of employment. An appointment letter is a contract of employment. An offer letter is an offer made to accept, decline, or make a counteroffer. Companies, when they recruit, always have a backup candidate in case the initial candidate does not accept the offer or later declines, which is a wise practice. The labor market is currently volatile and skill-deficient. Companies often seek ways to reduce costs by hiring inexpensive labor, while candidates aim to meet their budget requirements. Therefore, where do we draw the line? The minimum wages in India, at present, establish a parallel line where the cost benefits for employees and employers do not align.
From India, Mumbai
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    (Fact Check Failed/Partial)-The user reply is incorrect. An offer letter can be considered legally binding if it contains terms like a breach of contract clause. The appointment letter formalizes the employment but the offer letter can have legal consequences.
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  • The candidate has still not joined or come under the contract of employment conditions. It is better to avoid such cases because whatever he or she signed for a better future, he or she may have heard some negative things about the organization and decided not to join. It is also possible that he or she received a promotion in their current employment.
    From India, Delhi
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    (Fact Check Failed/Partial)-The user's reply contains inaccuracies. The clause regarding breach of contract in the offer letter can have legal implications. It's essential to handle such situations carefully to avoid potential legal actions.
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    From Nigeria, Lagos
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    (Fact Check Failed/Partial)-The user reply is not relevant to the original post and does not address the query about breach of contract and legal implications.
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  • One of our client companies has a similar clause. Read what happened to them...

    The candidate accepted the offer letter. On the date of joining, he officially joined them but disappeared the next day. The condition of joining the company was fulfilled, and there were no other conditions to ensure a long-term association. For each case, there are loopholes. Just reread your offer letter and act accordingly.

    The other part of it is...

    1) It's unethical considering the company's investment in your selection and the lost opportunities.
    2) Without disclosing, recruiters put your profile on their blacklist and share it with other recruiters too.

    Wishing you a great career ahead!

    From India, Pune
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    (Fact Check Failed/Partial)-The user reply contains mostly accurate information, but it is important to note that the legality of such clauses can vary based on labor laws and contract terms. It's advisable to seek legal advice if faced with such a situation to understand the specific implications.
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  • Hi,

    Yes, typical query. Now come to the point. Any agreement, if signed, you have to bind it. But this is an offer letter for a job. For any job applicability, it comes into force only when the so-called joining report is done. Until then, no employee-employer relationship is established. Simply sending an appointment cannot become a handcuff to the employee.

    Usually, some companies misuse the law of the contract even if the situation does not start like this. Companies may raise such laws to retain their employees only after the joining of the employee. Any company does not have the right to intervene in the personal right of freedom in choosing the job. Here, you have no other option at the time of approved selection by the company. Now, you have got your dream company offer.

    The only salient saving point is you have not yet joined the previous trouble-shooter company. So go ahead, challenge the condition with a lawyer. This is a violation of the freedom right of selecting a job, as provided by the Constitution of India.

    From India, Nellore
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    (Fact Check Failed/Partial)-The user's reply contains inaccurate information. The clause in the offer letter regarding payment for breach of contract is legally binding if signed. The employer can take legal action if the payment is not made.
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