Umakanthan53
Labour Law & Hr Consultant
Bharat Gera
Principal Hr Consultant
Aniket Pathak
Sr. Officer Hr
Pvenu1953@gmail.com
Retired Government Servant/advocate
Archisa
Service
+3 Others

Thread Started by #Archisa

I was recently selected for an organization where in the Offer Letter there was a clause of Breach of Contract. It said that if I do not join I will have to pay 8% of the annual CTC. I took the job because I liked the role but I did oppose the clause, since as a candidate I wanted to look at other options which suited my career path too. They did not agree and said they put this clause since many people do not inform or do not report on the date of joining without intimation. But now before 3 weeks of my joining I want to inform them that I wish to decline since I got an offer from my dream company yesterday.
My question is that if they do not agree and I cannot pay the amount can they file a case against me. This may be termed unprofessional but I signed because at that time I did not have any other offer. I had been waiting for his other company's call and now that I have it I do not want to miss it.
27th June 2018 From India, Mumbai
Dear Friend,
Yes. As you signed the contract with that particular clause so you need to abide and clear the amount failing which they have every right to proceed legally. Let us wait for the inputs from other senior professionals.
Regards
Kamesh333
27th June 2018 From India, Hyderabad
https://economictimes.indiatimes.com...w/21988169.cms
Strictly speaking the company can initiate action and claim cost of recruitment.
It will be difficult to quantify how much money was spent to select you only.
But proving such costs is not easy.
Asking you to pay 8% of CTC is an ad hoc figure and can be contested.
No one can predict whether company will act legally if you do not join.
Send them a polite letter expressing your inability to join now and take the plunge to join where you feel fit.
Put up the clause of 8% CTC for us to read and understand.
27th June 2018 From India, Pune
Having signed the offer, you have accepted it as it is and also effectively communicated your acceptance to the offeror. Just because now you have a better offer, you can not rescind it.
27th June 2018 From India, Salem
Dear Archisa,
The Company can not claim the same from your side because you have joined the organisation but now going to resign from the post. As per your statement you have said that the clause stated that It said that if I do not join I will have to pay 8% of the annual CTC, but do not mentioned that you are bound to work for a certain period.
Regards
Shubham
28th June 2018 From India, Faridabad
Thanks everyone for your valuable inputs.
Shubham: I did not join this company as I got better prospects elsewhere.
Everyobe: What if the offer letter was contingent on medical check ups, background verification etc. Is it not a conditional offer which has not been completed. Will the penalty still apply? Suggestions and comments please.
28th June 2018 From India, Mumbai
Acceptance must be absolute and unconditional.
The company had given you an offer which you had accepted, but some stipulations like verification, medical are there from company side.
They have given an conditional offer
Your acceptance has been unconditional and you are bound by it.(But also read my answer above)
The company can still reject you as they have made a conditional offer of medicals and verification.
28th June 2018 From India, Pune
Dear Archisa,
If you feel that you are getting better opportunity elsewhere and you are certain about it please go for it now instead of joining here due to threat of getting dragged in court. You can't live in fear.
surely company can go legal but it has been seen that usually companies don't prefer doing it.
Also, if they put such clause in the offer letter they must have experienced such situations when would be employees didn't show up on DOJ and they sure are prepared for that. Usually recruiters for such situations always shortlist 2-3 people to whom they can extend offer to.
Now you still have 3 weeks be sure first and let them know about your incapacity of joining their company keeping it documented. you should inform them well in advance so that they can work on plan B.
All the Best...
To Respected seniors,
I know that my suggestion could seem far from right but sometimes opportunity cost is just unbearable. Also, fortune favors the Brave.
29th June 2018 From India, Pune
Archisa,
The said particular clause is to create a fear only.... You can very well proceed towards the better opportunity..... The company will not waste their time, money and energy by bringing you under law on these lines.
Regards,
Princely Raj
29th June 2018 From India, Chennai
Dear Colleague,
Though my advice is not in good taste, to wriggle out of the possible deadlock, I suggest you join for a day and quit.
Regards,
Vinayak Nagarkar
HR-Consultant
29th June 2018 From India, Mumbai
Dear friends,
Simply put, the question here is in a contract of employment whether the offeree i.e the employee can later repudiate his/her acceptance already communicated. The answer can only be an emphatic "NO" with reference to the Indian Contract Act,1872. Only such a legal position enables the offeror I.e the prospective employer to sue for damages already mentioned and accepted. Whether it is reasonable is a question to be decided by the Court only. Similarly, the prospective employee can simply ignore it under the impression that"nothing ever happens" and accept a more beneficial offer that comes later. But everyone should be law-abiding!
30th June 2018 From India, Salem
It is is better to personally meet the concerned HR Head and share your concerns with him. A dialogue is much better solution than an escape route.
All the best...
5th July 2018 From India
Is this real query? It is seen that very same query, verbatim (even with the very same errors), had been posted had been posted in the thread https://www.citehr.com/470887-can-co...candidate.html in a highly informing discussion initiated by Swati.
Hi,
I was recently selected for an organization where in the Offer Letter there was a clause of Breach of Contract. It said that if I do not join I will have to pay 8% of the annual CTC. I took the job because I liked the role but I did oppose the clause, since as a candidate I wanted to look at other options which suited my career path too. They did not agree and said they put this clause since many people do not inform or do not report on the date of joining without intimation. But now before 3 weeks of my joining I want to inform them that I wish to decline since I got an offer from my dream company yesterday.
My question is that if they do not agree and I cannot pay the amount can they file a case against me. This may be termed unprofessional but I signed because at that time I did not have any other offer. I had been waiting for his other company's call and now that I have it I do not want to miss it.
Regards,
Jobcandidate
14th December 2015 From India, Gurgaon
6th July 2018 From India, Kochi
Dear Friend,
1. Please do not bother about the offer if the offer is conditional e.g. subject to being medically fit or subject to back ground verification if the offer is unconditional the you may have a legal problem in the future.
2. Let the company go & file the suit against you, so what, contest in the court of law. Not a big deal. Employers keep on bullying. They can not hang your future on a thread.
3. In case the offer is conditional that you refuse to accept the conditional offer & go ahead with the new offer. Please check if your offer mentions that it can be withdrawn even after acceptance then it is in your favour.
4. In future, before accepting any offer please study the offer letter carefully seek clarifications & then only accept.
5. Every employer thinks that they are the best employers in the world & best of service conditions but this is a myth in case of big majority of employers.
Warm Regards
Bharat Gera
HR Consultant
9322404765
6th July 2018 From India, Thane
If prospective employee is liable to compensate the company for not joining,the company should compensate the candidate if it cancels an offer.
Varghese Mathew
7th July 2018 From India, Thiruvananthapuram
There is no binding on somebody unless and until s/he becomes an employee. Hence, no action could be taken in such case if the person has initially accepted the offer but later expressed his denial on account of some reasons.
Rgds
Piyush
11th July 2018 From India, Varanasi
Hello Concerned
But this routine habit of people accepted the offer latter and near the joining date, excuses like they have better opportunity many time do not picked the phone calls from HR.
When an employee accept the offer latter this is on his/her own will, no one force them.
Consider the fact that company invest huge amount of money and time to shortlist and recruit one employee, and when he/she accept the offer later to join on 1 or 2 month notice then company get assured that one position is fulfilled. And when near to joining date company hear that employee is not joining then it is again same exercise.
I read comments that company shortlist 2-3 employees when require one, that is not correct every time.
Anything on this? Is it not unprofessional? And take it reverse if company deny employee near to joining date then?
These days I think no ethics are there, I am not saying employee is the only culprit some companies are also doing bad.
So in my opinion employee should think before accepting the offer latter and once accepted they should honor that.
13th July 2018 From India, Ludhiana
Yes, you can cancel the offer but you need to communicate your intention of cancelling the offer and at the same time put a counter offer with conditions. Once you put a counter offer the original offer is null and void.
17th July 2018 From India, Mumbai
Inform the recruiter about your cancellation and go ahead to your dream job. Company will not be waste their time and money by file case. You had not accept offer on any bound paper or any court paper. Mainly offer letters not shown the offered salary then how can they proof your CTC.
18th July 2018 From India, Solan
#Anonymous
Hi
Candidates accept our offer. Insist on offer letter being issued before joining date so that they can quit the earlier job/stop job search. In all good faith, HRD issue an offer. They use the offer letter to leverage a higher offer. Else they join either to void a break in service while searching for a new job or join after a break in service to show that they are in service, get 1-2 paystubs and quit abruptly even without serving notice period. In either situation, HRD is back in square one. Apparently, ethics are different when we are employees and when we are employers.
JS
18th July 2018 From India, Chennai
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.
19th July 2018 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.
22nd July 2018 From India, Delhi
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28th July 2018 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!
29th July 2018 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
19th August 2018 From India, Nellore
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