Dinesh Divekar
Business Mentor, Consultant And Trainer
Nathrao
Insolvency N Gst Professional
+2 Others

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Hi,
Appreciate your advice on my below issue.
I got an offer from a company. They asked me to join on a day in my offer letter. So I moved everything (Family, things, households, car etc etc) to my job location. Just before joining date evening I got a call from HR saying that project got dropped and asked me not to join. Later I come to know from that company employees that project got lost long back but still they issued offer letter to me to join that company.
Because of this offer I rejected couple of other offers. I spent lot of money, physical effort to shift my residence to new location.
Kindly give me your advice on this issue. I'm planning to go labor court. Appreciate you advise.

From India, Chennai
This is more a civil court issue than labour court.
You can hire a good lawyer and sue them,provided you have documentary evidence of their offer letter,change of job from earlier company etc.
Have you got a copy of your acceptance letter and proof of dispatch to company accepting the job??

From India, Pune
Dear Kumar,

What has happened with you is unfortunate. Company should have been thoughtful while taking new person on board. By withdrawing their offer of employment, they have left you in lurch. This smacks of insensitivity on the part of the employer.

As Mr Nathrao has said, your case cannot fall under the purview of labour laws as employer-employee relationship did not take shape. You were not the employee of the company.

Nevertheless, whether this case can come under the purview of Indian Contract Act, 1872 is a moot point. Appointment letter is a contract between employer and employee. Can Offer Letter also becomes a contract? May be or may not be. It all depends on how the court interprets the law. Occasionally courts have upheld the oral contracts also.

You may find out a suitable lawyer who handles the cases of ICA and seek his/her advice. If you file a suit against the company then you may claim the transportation charges, and loss of pay caused due to your resignation from the previous company.

It appears that you had shown eagerness in moving your family well before employment. You could have settled in the new job and after 2-3 months you could have moved your family and household luggage.

Thanks,

Dinesh Divekar


From India, Bangalore
I thank Shri Dinesh Divekarji for his timely advice; especially to the new joinees who may even try to take the trouble of shifting his family, house etc . disturbing all to rush to join new Co. upon getting an Offer letter.
It is a good advice to job seekers who have tobe cautious while joining new Cos & not to shift family before making all assessment at the new place.
The Co. is also at fault for not informing outstation candidates reg. such changes..This speaks for the need for transparent communication; both from Co.side & candidate side. This ugly situation could have been avoided if the Co. had a good onboarding Policy; where the Co. keep HR person to liaise with the new comer for all help including getting house, transport etc., to make shifting & joining smooth.
3.3.16

From India, Mumbai
Anonymous
I have had to handle a similar situation in one of my previous company. We had issued offer letters to a few. Just before the people could join, recession set in and orders started getting cancelled. We had to prepare ourselves for a grim future ahead hoping for the economic climate to ease. The issue was about those who were expected to join us n 15 days to a month. We took a legal opinion and we were advised by a top lawyer that our liability was just the notice period salary and not a penny more. But, as a good employer, we had a brand to protect. We called up each onee of the employees and met them personally and explained the situation. We requested them to try and stay back in their organization. Out of the 7 employees, 4 managed to stay back. 3 could not. As per our terms of contract, we had a 2 months notice period. We decided that we will pay them double of the notice period. So we paid them 4 months notice period salary. But, as luck would have it, we could recruit all the 7 in about 4 months time.

It made a huge difference to our brand as an employer with good HR practices. This message spread across the spectrum of our employees and prospective employees. The results showed in a higher employee engagement.

There are also HR people who tow the line of the business heads who do not understand the value of employer as a brand . It's the duty of HR to help management to understand the value of investment in HR and how to differentiate it with an expense.

The more the posts of this nature that I see, the more it makes me feel sad about how employers are becoming sweat shops and don't understand that HR is a pillar of any organization.

From Indonesia, Jakarta
Thanks a lot friends. what a useful comments.
Yes, as you said I'm not supposes to take my family with me but my situation is like this. I have to put my daughter in school (LKG) because of this offer I put her in Chennai for schooling. I don't have time to wait for few months.
Wonderful job u guys did for those 3 guys paying there notice atleast. Yes, same I asked to this guys too, Just one month salary. If they refuse to pay that then they will feel for there mistakes.
HR said company lost that project, There COO says this project is for Bangalore how come you got joining place as Chennai. Also she said some hug miscommunication happened. :-) wat a joke.
I have everything with me as proof. Let me make sure they will never do this with anyone in future.
Thanks again for all your advice's Cheers

From India, Chennai
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