Dinesh Divekar
Business Mentor, Consultant And Trainer

Dear All,
I need your guidance, one of my has applied for job through Consultancy & got selected for a MNC Organisation, but his current has retained him, but now the consultancy guys visited his office, they call him on his company's board line no, they have asked him to sign a copy where it is mentioned that if he dont join the company he will have to pay 2months gross pay, pls let me no what can be done to avoid any issues
Dear Mayuri,
You have not written about the type of agreement that your friend has signed with the consultancy. Was it on a bond paper and if yes please confirm what was the value of the bond paper. Going further we need to the wording of the agreement also.
With whom the agreement has been signed? Was it with MNC or with the recruitment consultancy? Your friend should not have signed agreement with the recruitment consultancy. They are just mediators to provide the job to the candidate. Nevertheless, this case falls under the purview of Indian Contract Act, 1872. Therefore, your friend may seek advice from a lawyer who handles cases under this law.
Dinesh Divekar
Dear sir, Thanks alot for ur guidance. He has signed a service agreement, with Consultancy, I have attached the copy of Service Agreement Regards Mayuri

Attached Images
Membership is required for download. Create An Account First
File Type: png wp_ss_20170415_0001.png (1.15 MB, 29 views)

Dear Mayuri,

Overall I have gone through the verbatim of the agreement. The agreement is not one-sided per se. In the agreement, a clause has been included for the either party, candidate and recruitment consultancy. If candidate fails to join then contract demands 2-months gross salary from him/her and in case consultancy's client revokes job offer then they are ready to pay 2 month's salary. This implies that they are ready to take ownership for the failure of their client to provide the job to the selected candidate. Their balanced approach is appreciable.

Your friend could have been little thoughtful. On acceptance of the job offer, he should not have backtracked. His current organisation has retained him (presumably) by increasing his current salary. But then by accepting offers from both, one from current employer and another from the future employer, he has put himself in the bind.

Now at this stage what matters is whether the agreement was signed on valid bond paper, and if yes, then what was the bond amount. If the agreement was not signed on the bond paper then its validity is questionable. Therefore, your friend may approach a lawyer who handles cases under ICA, 1872 and obtain the legal opinion on whether to decline the new job offer and consequences thereof.

Declining job offer, whether by paying 2-month gross salary or not, is unprofessional approach. Your friend needs to improve his way of working. If he keeps blowing hot and cold, he will keep on putting himself in binding situation forever.

In the meanwhile, you too deserve some feedback on your first post. Since few vital words are missing from the sentences of your post. I had to write my reply with some assumptions. In your second post also, you have not given replies to the questions asked in my first reply. Therefore, before clicking "post to this thread" button of this website (to send a reply), I recommend checking completeness of your post along with grammar. If you had done that, you would have observed the extent to which you had tampered the grammar. While seeking opinions from the seniors this carefree or informal approach is hardly expected!


Dinesh Divekar
Thanks alot Sir, I have recently joined CiteHR & this was my 1st query, I will make sure i will update all the details whenever i post a query. Thanks
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™