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An offer letter is not a contract of employment. Appointment letter is a contract of employment. An offer letter is an offer made to accept or decline or to make a counteroffer. Company's when they recruit they always have a backup candidate in case of A does not accept their offer or later decline. And it is a wise thing to do. The labour market is nowadays volatile and skill deficient. A company always looks for ways to reduce costs by hiring cheap labour and candidates will always look to meet their budgets. So where do we draw a line? The minimum wages in India, for the moment, draw a parallel line where the employee and employers cost benefits do not meet.
From India, Mumbai
The candidate still not joined or comes under contract of employment conditions,it is better to avoid such cases because whatever she or he signed for better future but may be he or she heard some bad things about the orgnisaiton and decided to no joining or it may be possible he or she got got promotion in the current employer.
From India, Delhi
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From Nigeria, Lagos
One of our client company has similar clause. Read what happened to them ....
Candidate accepted the offer letter. On the date of joining he officially joined them. But disappeared from the next day.
The condition of joining the company got fulfilled.
There was no other condition to ensure long term association.
For each case, there are loop-holes. Just read your offer letter again and act accordingly.
The other part of it is ....
1) Its unethical considering the company's investment in your selection and also lost opportunities.
2) Without disclosing; recruiters put your profile in their blacklist and share it with other recruiters too.
Wish you a great career ahead!

From India, Pune
YES TYPICAL QUIERY
..NOW COME TO POINT...ANY AGREE MENT IF SIGNS...U HAVE TO BIND IT.
BUT THIS IS AN OFFER LETTER FOR A JOB. FOR ANY JOB APPLICABILITY COME INTO FORCE ONLY WHEN SO CALLED JOINING REPORT DONE ONLY
UNTILL THEN NO EMPLOYEE ~EMPLOYER RELATION ESTABLISHES
SIMPLY SENDING APPOINTMENT CAN NOT BECOME A hand cuff to the employee..
Usually some companies misuse the Law of contract even if it does not starting situation s like this .
Companies may raise such laws to retain their employees only after joining of employee ... Any company do not has right to intervene the personal right of freedom of choosing the job.
Here u have no other option at the time of approved selection by company. Now you got your dream company offer.
The only salient saving point is u have not yet joined the previous trouble shooter company.
So go ahead challenge the condition with a lawyer..this is violation of freedom right of selecting job.
Provided by constitution of india

From India, Nellore

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