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Ritesh Shah - Owner @ Job Seeker Hq
Practicing Chartered Accountant

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I have got an offer letter from an compay. In offer letter it is mentioned like if am not able to join then i need to pay the one month salary as mentioned in the offer letter.
if am not joining on the mentioned data will they create any problem for me legally ?
please help,

From India, Chennai
Hi Hussain,
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. Its legally binding on you only if you have shown acceptance in writing to them. Normally after you accept the Offer, 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
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
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
Not possible. Think the company is fraud and trying to play with you. Legaly they cant.
From India, Bangalore
Hi Hussain,
Legally they cannot take one month's salary from you for joining late.
They cannot hold you responsible for your actions/inaction for the time period when you were not employed with them.
Even if you have given your acceptance, such a clause is not legally enforceable.
Also, the Payment of Wages Act specifies a list of permissible deductions from salary. Such kind of a deduction is not permissible under the Act. (Search for the bare Act on the Internet and go through it once.)
Hope this helps.
Ritesh Shah

From India, Pune
Did you get the letter last week. The reason I am asking this is because last week 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. And so if one refuses the offer, then the company is 3 months behind for a person to join. I believe that some smart HR guys would have immediately wanted this clause to be added. But, what one did not think about is whether its valid. As per law, if its accepted, then it is valid, since you are creating a contract. But, if you default and do not join, does the company have the patience to sue you. My honest answer would be a no. Apart from sending you notices and maybe publishing in 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 of time, they are going to look at the ROI and find that it is minus. And plus, the legal department has much more important work to do.

And what happens, if one goes to the court. Once the judgement is given, the candidate can opt for paying the money in instalments of INR 500 every month and the court will agree. And the candidate will 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 is practical to implement. The CEO's can propose, but its the HR's duty to enlighten the CEO that its not practical and does not make commercial sense.

From Indonesia, Jakarta
If it is just an offer letter, there is no need to worry about anything .. just let them know that you cant join but one thing I would suggest you for not to repeat this again.
You must consider the employment (Company, package and other ) details, your expectations, opportunities you are being offered before accepting any offer because the time what employers/recruiters are spending and the time you are spending in this process are very precious.
Take care of TIME. Best of Luck

From India, Gurgaon
hi My name is parashuram i have worked as accountant 6 years but i have so many problems
first i have joined in tax consultant in accountant
second joined in chartered accountant firm
i have worked in small cities and i have not taken offer letter and appointed letter and relieving letter
i have only taken experience certificate
what i do

From India, Belgaum
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