My brother has got an offer letter from one organization which he signed. Now one of the conditions of the offer letter is " You are required to commit us for the long period of your service and you will execute an agreement to serve the company for a period of minimum 3 years from the date of joining". His monthly CTC is Rs. 10,000/-. Now he doesn't want to join the job as doesn't want to be bound for 3 years.
1) As he had already signed the offer letter can he refuse to join the company? If yes what can be the legal consequences he can face?
2) Another condition of the company was " You shall be on probation for a period of 6 months and required to comply with all such rules and regulations as the company may frame from time to time." My question is the date of commitment should be started from the date of the end of the probation period?

From India, Vadodara

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KK!HR
1041

You have stated that the offer has been signed by your brother, but there is nothing in the offer letter indicating that it amounts to acceptance of the offer. Presuming it to be non-acceptance, it can be stated that the signature signifies only the acknowledgement of the receipt of the offer . If it is so then there is no legal implication.
However, if there is acceptance of the offer of appointment then the position is little different. As per Contract Act 1872, the offer once accepted becomes a promise and the reciprocal promise becomes agreement and a valid agreement is a contract. As the saying goes "A contract is an agreement; an agreement is a promise and a promise is an accepted proposal". So the acceptance of the offer has rendered it to be legally enforceable. So if you do not join by the date mentioned, then there is breach of agreement and you are liable to pay compensation/damages. It is limited to the actual cost incurred for recruiting you and not any fanciful expenditure

From India, Mumbai
Thanks for replying,
1) How much amount they can recover as a part of compensation/damages as the salary is of only Rs. 10000 per month?
2) What are the chances that they will legally enforce in the court?
3) Please also answer my second question to the original question.

From India, Vadodara
KK!HR
1041

To answer you specifically,
1. Is there any more clause in the offer letter after Sl . No. 8. As such there is no penalty clause in the offer made so we cannot put a definite sum as of now, as it would depend on the organisation. Now a days some organisations are including a penal clause specifying the amount payable as penalty in case the candidate after accepting the offer fails to turn up. .
2. Legally speaking acceptance of job offer letter does not mean that the employment relationship between the employee and the employer has started unless there is a written proof which clarifies that the offer has already been effective and the burden of proof shall be borne by the party who is claiming starting the employment relationship. It is not an easy task. It is not likely that the organisation incurs more expenses in filing court case and all that.
3. Date of commitment starts from day one of employment.

From India, Mumbai
1) No after SI. no. 8 there is no other clause. On the next page, it is mentioned that "kindly sign the duplicate copy of this letter as a token of your acceptance and send it back". There is no penalty clause.
2) I also thought that I was just thinking about what will be the worst-case scenario so I can be ready mentally.
3) SI no. 4 says about a probation period of 6 months. The probation period means the period in which the employer can remove employees or employees can resign from the organization. Am I right?
If the date of commitment starts from the date of joining, then I think a bond agreement takes away the power of resigning during the probation period from the employee. Am I right? and employee take advantage from probation period.

From India, Vadodara
nathrao
3092

Have you sent duplicate copy of acceptance letter?
After reading all clauses of the letter,I do not think the company would go to court for non joining.
Off course be prepared for legal consequences,but it will be really a last resort.
Litigation is expensive and chances are remote.Company will have to prove what they want the court to believe.
One lesson to learn,is be careful and think before you commit.

From India, Pune
yes, my brother has signed the offer letter at the time of the second meeting in their office. So the signed copy is with them only.

My brother is a fresher, and the salary offered by them is Rs. 10,000/- so I also think for a fresher and at such low salary there is a remote chance that the company will go for litigation, but to be on the safer side I just want to be ready for the worst-case scenario.

Another condition they kept in front of my brother, that during the period of commitment of 3 years if my brother wants to resign before completion of 3 years then my brother has to reimburse the salary of the remaining period to the organization, and brother said ok. Of course, this was verbal. This is the thing I am worried about the most.

Eg. If 1 year from the date of joining if my brother wants to resign then he had to reimburse a 2-year salary to the organization.

The appointment letter and commitment has not been signed yet.

Will it affect us adversely in any way from the point of litigation?

From India, Vadodara
The revelations last posting suggests that the employer is less than model and trusts highhanded methods than the employees. The employment is worth missing.
The employer can resort to an action in law. But he can't succeed unless the employee succumbs.

From India, Kochi

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