Hi,
A few months back, I received an offer letter and accepted the offer. The offer letter included terms and conditions. Although I did not physically sign the document, I provided acceptance via email.
However, I ultimately decided not to join the company due to serious issues such as frequent management changes and employee terminations. Typically, acceptance is required within a day or two after receiving the offer, making it challenging to assess the company's progress.
The company took my decision not to join seriously and initiated legal action, sending a court summons demanding a substantial payment exceeding a lakh. They claimed breach of contract and requested reimbursement for court charges. I questioned why I was being asked to pay such a large sum, as I was never informed of these consequences for not joining.
I have the following questions:
1) Did I commit any legal wrongdoing in this situation?
2) Should I comply with their demand for payment, considering the significant amount involved?
3) Is email acceptance considered legally binding?
4) Does this scenario fall under the Information Act 2000 regarding breach of contract?
Thanks.
From India, Hyderabad
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1A few months back, I received an offer letter and accepted the offer. The offer letter included terms and conditions. Although I did not physically sign the document, I provided acceptance via email.
However, I ultimately decided not to join the company due to serious issues such as frequent management changes and employee terminations. Typically, acceptance is required within a day or two after receiving the offer, making it challenging to assess the company's progress.
The company took my decision not to join seriously and initiated legal action, sending a court summons demanding a substantial payment exceeding a lakh. They claimed breach of contract and requested reimbursement for court charges. I questioned why I was being asked to pay such a large sum, as I was never informed of these consequences for not joining.
I have the following questions:
1) Did I commit any legal wrongdoing in this situation?
2) Should I comply with their demand for payment, considering the significant amount involved?
3) Is email acceptance considered legally binding?
4) Does this scenario fall under the Information Act 2000 regarding breach of contract?
Thanks.
From India, Hyderabad
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Hi,
What were the terms of the offer that you were asked to sign? What did you state in your email acceptance? While I would suggest you consult a lawyer, my understanding of this process is that the offer letter is an intent to offer employment should certain conditions be met, not a guarantee of employment.
What are the terms of the offer where the company's liability is mentioned in case they have to withdraw the employment offer? If such terms exist, then it becomes a contract as per the terms of equal justice. If this goes to court, it is the company's onus to prove that they have spent this amount of money beyond what is necessary as part of their need to hire manpower, to attract only you as a special candidate. Can they do that?
Next time, if you see such clauses in the offer letter, do not join because such organizations are bound to have issues and will surely have higher than normal attrition.
Regards
From India, Mumbai
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What were the terms of the offer that you were asked to sign? What did you state in your email acceptance? While I would suggest you consult a lawyer, my understanding of this process is that the offer letter is an intent to offer employment should certain conditions be met, not a guarantee of employment.
What are the terms of the offer where the company's liability is mentioned in case they have to withdraw the employment offer? If such terms exist, then it becomes a contract as per the terms of equal justice. If this goes to court, it is the company's onus to prove that they have spent this amount of money beyond what is necessary as part of their need to hire manpower, to attract only you as a special candidate. Can they do that?
Next time, if you see such clauses in the offer letter, do not join because such organizations are bound to have issues and will surely have higher than normal attrition.
Regards
From India, Mumbai
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Just ignore their letter. The conditions will be sacrosanct once the employer-employee relationship is developed. Till such time, neither party can claim damages unless one party is financially affected by the other party.
Pon
From India, Lucknow
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Pon
From India, Lucknow
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Please find attached the general terms and conditions.
In the email acceptance, I wrote:
"Thanks for providing the opportunity to work with you. I am going on vacation tomorrow, so I will be back by Saturday. Therefore, I can only resign on <Date>. Consequently, my joining date would be <Date>. Please let me know if this does not work for you."
Thank you.
From India, Hyderabad
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In the email acceptance, I wrote:
"Thanks for providing the opportunity to work with you. I am going on vacation tomorrow, so I will be back by Saturday. Therefore, I can only resign on <Date>. Consequently, my joining date would be <Date>. Please let me know if this does not work for you."
Thank you.
From India, Hyderabad
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The document you attached contains no mention of the consequences of not joining the organization. Please inform them about this. If they still persist, I am pretty sure you can sue them for harassment. As I said earlier, speak to a lawyer for proper advice.
Regards
From India, Mumbai
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Regards
From India, Mumbai
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Hello Mahi82,
Ryan Barretto is right - your attachment is applicable more for those who joined. It refers to probation, etc. - nothing related to lapse or refusal to join. Also, please clarify or confirm if you received any reply to the mail you sent. The wordings you used implicitly indicate that you are expecting their reply before you resign. It's not a de facto acceptance of the offer - presuming you mentioned the full mail you sent them.
Regarding their "breach of contract" aspect, was anything mentioned in any of their mails about the amount or any reference to such a thing? And as Ryan suggested, hire an advocate and send them a legal notice for mental harassment - in short, go for the counter-attack. I also wouldn't rule out taking this to the local media - check with your advocate before you do so.
All the best.
Regards,
TS
From India, Hyderabad
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Ryan Barretto is right - your attachment is applicable more for those who joined. It refers to probation, etc. - nothing related to lapse or refusal to join. Also, please clarify or confirm if you received any reply to the mail you sent. The wordings you used implicitly indicate that you are expecting their reply before you resign. It's not a de facto acceptance of the offer - presuming you mentioned the full mail you sent them.
Regarding their "breach of contract" aspect, was anything mentioned in any of their mails about the amount or any reference to such a thing? And as Ryan suggested, hire an advocate and send them a legal notice for mental harassment - in short, go for the counter-attack. I also wouldn't rule out taking this to the local media - check with your advocate before you do so.
All the best.
Regards,
TS
From India, Hyderabad
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Hello Mahi,
I hope the problem is solved. If not, the other two members have given the right advice. They cannot claim anything unless they have spent money on hiring you with your consent, which, by the way, is not possible. Ignore their email. This tactic is employed by a few companies to pressure you into joining, as most candidates often have limited knowledge or no knowledge about legal issues. This is not the right approach for a company. I myself have made several offers, and many have been rejected after initial acceptance. There would be no legal consequences. In fact, a case of mental harassment could be filed from your end, and in that case, you could definitely claim the amount they have asked you to pay or even more, whatever you deem appropriate. However, I wouldn't suggest you do that as it will only disturb your peace of mind. The best course of action is to send an email to them stating that you are aware of the legal actions that could be taken against you for your actions. Remember, nothing becomes a contract unless it is on stamp paper. An acceptance of an offer does not bind you in the way the concerned company has implied. Moreover, they cannot take legal measures unless you were formally and in writing informed about their right to claim the said amount, and that too on stamp paper.
From India, Pune
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I hope the problem is solved. If not, the other two members have given the right advice. They cannot claim anything unless they have spent money on hiring you with your consent, which, by the way, is not possible. Ignore their email. This tactic is employed by a few companies to pressure you into joining, as most candidates often have limited knowledge or no knowledge about legal issues. This is not the right approach for a company. I myself have made several offers, and many have been rejected after initial acceptance. There would be no legal consequences. In fact, a case of mental harassment could be filed from your end, and in that case, you could definitely claim the amount they have asked you to pay or even more, whatever you deem appropriate. However, I wouldn't suggest you do that as it will only disturb your peace of mind. The best course of action is to send an email to them stating that you are aware of the legal actions that could be taken against you for your actions. Remember, nothing becomes a contract unless it is on stamp paper. An acceptance of an offer does not bind you in the way the concerned company has implied. Moreover, they cannot take legal measures unless you were formally and in writing informed about their right to claim the said amount, and that too on stamp paper.
From India, Pune
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It is only an offer letter. That is a letter of intent. The company is offering you a position for... rupees remuneration. You are not legally bound to pay anything to the company. Even if a company issues an appointment order and the appointee is not joining, no company can take legal action. Nowadays, even courts accept emails as a document.
Thanks,
R K Nair
From India, Aizawl
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Thanks,
R K Nair
From India, Aizawl
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Dear Mahi82,
I have gone through the general terms and conditions you placed on record. Let me say that the offer (you narrated) itself is not complete. Unless full facts, inclusive of the full offer of appointment, are placed for a view, our opinion cannot be firm and clear. I hope you agree with it.
S.K. Johri
From India, Delhi
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I have gone through the general terms and conditions you placed on record. Let me say that the offer (you narrated) itself is not complete. Unless full facts, inclusive of the full offer of appointment, are placed for a view, our opinion cannot be firm and clear. I hope you agree with it.
S.K. Johri
From India, Delhi
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Dear Friends,
A contract contains Offer, Acceptance, and Remuneration (Consideration). Here in this issue, all three have taken place. The company has spent on advertisement, consultancy, or any other money on offering the candidate. After all conversations with the candidate, the company has selected him to hire. An offer letter with the terms, whatever they may be, has been mailed to the candidate and was accepted in return mail. It is final that the candidate has mailed the consent. Immediately, the company has paid the related parties. In the event of a breach of contract, the company can claim damages as per Section 73 of the Indian Contract Act. The company can provide a bill of consultancy or a Real Advert in this regard, which is enough proof of spending money towards his selection. However, this will have multifaceted arguments in a court of law.
Sr. Manager HR & Legal
From India, Guwahati
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A contract contains Offer, Acceptance, and Remuneration (Consideration). Here in this issue, all three have taken place. The company has spent on advertisement, consultancy, or any other money on offering the candidate. After all conversations with the candidate, the company has selected him to hire. An offer letter with the terms, whatever they may be, has been mailed to the candidate and was accepted in return mail. It is final that the candidate has mailed the consent. Immediately, the company has paid the related parties. In the event of a breach of contract, the company can claim damages as per Section 73 of the Indian Contract Act. The company can provide a bill of consultancy or a Real Advert in this regard, which is enough proof of spending money towards his selection. However, this will have multifaceted arguments in a court of law.
Sr. Manager HR & Legal
From India, Guwahati
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Company Profile.ppt
Offer letter.pdf