Hi,
I have received an offer letter from a company. The offer letter states that if I am unable to join, then I would need to pay one month's salary as specified in the offer letter. If I do not join on the specified date, could there be any legal implications for me?
Please help.
Thanks,
Hussain
From India, Chennai
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I have received an offer letter from a company. The offer letter states that if I am unable to join, then I would need to pay one month's salary as specified in the offer letter. If I do not join on the specified date, could there be any legal implications for me?
Please help.
Thanks,
Hussain
From India, Chennai
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Hi Hussain,
An offer letter is something granted to you for you to 'accept' the benefits provided by the company and the terms and conditions they want you to comply with. It's legally binding on you only if you have shown acceptance in writing to them. Normally, after you accept the offer, the company issues you the appointment order, which lays down your responsibilities and liabilities to the company in detail. Only at this stage, you need to worry unless, as mentioned earlier, you have given them your acceptance in writing.
Forgot to mention, welcome to CiteHR...
From India, Madras
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7An offer letter is something granted to you for you to 'accept' the benefits provided by the company and the terms and conditions they want you to comply with. It's legally binding on you only if you have shown acceptance in writing to them. Normally, after you accept the offer, the company issues you the appointment order, which lays down your responsibilities and liabilities to the company in detail. Only at this stage, you need to worry unless, as mentioned earlier, you have given them your acceptance in writing.
Forgot to mention, welcome to CiteHR...
From India, Madras
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thansk for your reply. I sent them scanned copy of offer letter with my signature in it via mail to them. is there any problem in that? Again thanks for your support! Thanks, Hussain.
From India, Chennai
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From India, Chennai
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Hi Hussain, If you’re not interested in joining the Company, talk to the HR as early as possible or send them a mail with a very sound reason for not being able to join.
From India, Madras
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From India, Madras
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Not possible. Think the company is fraud and trying to play with you. Legaly they cant.
From India, Bangalore
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From India, Bangalore
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Hi Hussain,
Legally, they cannot deduct one month's salary from you for joining late. They cannot hold you responsible for your actions or inaction during the period when you were not employed with them. Even if you have given your acceptance, such a clause is not legally enforceable. Additionally, the Payment of Wages Act specifies a list of permissible deductions from salary. This type of deduction is not permissible under the Act. (Search for the bare Act on the Internet and go through it once.)
Hope this helps.
Regards,
Ritesh Shah
From India, Pune
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Legally, they cannot deduct one month's salary from you for joining late. They cannot hold you responsible for your actions or inaction during the period when you were not employed with them. Even if you have given your acceptance, such a clause is not legally enforceable. Additionally, the Payment of Wages Act specifies a list of permissible deductions from salary. This type of deduction is not permissible under the Act. (Search for the bare Act on the Internet and go through it once.)
Hope this helps.
Regards,
Ritesh Shah
From India, Pune
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Did you get the letter last week? The reason I am asking this is because last week the Economic Times carried an article which stated that one of the Birla companies has added this clause in the offer letter because they believe that it takes 3 months to close a recruitment and lots of time gets invested into it apart from money. So, if one refuses the offer, then the company is 3 months behind for a person to join. I believe that some smart HR professionals would have immediately wanted this clause to be added. But, what one did not think about is whether it's valid. As per law, if it's accepted, then it is valid since you are creating a contract. However, if you default and do not join, does the company have the patience to sue you? My honest answer would be no. Apart from sending you notices and maybe publishing in the newspaper a summons to court like TCS used to do and fighting the case, is not only time-consuming but also costs money. At some point, they are going to look at the ROI and find that it is negative. Additionally, the legal department has much more important work to do.
And what happens if one goes to court? Once the judgment is given, the candidate can opt for paying the money in installments of INR 500 every month, and the court will agree. However, the candidate may default, and the company will hire a lawyer to send a notice of default. The lawyer's cost would be between INR 5k to 10k for that single notice.
Before incorporating any clause, many companies do not think whether such a clause is legally tenable and also practical to implement. The CEOs can propose, but it's the HR's duty to enlighten the CEO that it's not practical and does not make commercial sense.
From United+States, San+Francisco
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And what happens if one goes to court? Once the judgment is given, the candidate can opt for paying the money in installments of INR 500 every month, and the court will agree. However, the candidate may default, and the company will hire a lawyer to send a notice of default. The lawyer's cost would be between INR 5k to 10k for that single notice.
Before incorporating any clause, many companies do not think whether such a clause is legally tenable and also practical to implement. The CEOs can propose, but it's the HR's duty to enlighten the CEO that it's not practical and does not make commercial sense.
From United+States, San+Francisco
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If it is just an offer letter, there is no need to worry about anything. Just inform them that you cannot join, but I would suggest avoiding such situations in the future. It is important to carefully consider the employment details (company, package, etc.), your expectations, and the opportunities being offered before accepting any offer. The time that both employers/recruiters and you spend in this process is valuable. Remember to take care of your time. Best of luck.
From India, Gurgaon
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From India, Gurgaon
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Hi, my name is Parashuram. I have worked as an accountant for 6 years, but I have encountered many problems. First, I joined a tax consultant as an accountant. Second, I joined a chartered accountant firm. I have worked in small cities where I did not receive an offer letter, appointment letter, or relieving letter. I only have an experience certificate. What should I do?
From India, Belgaum
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From India, Belgaum
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