Sure, merely showing an appointment letter cannot serve as proof of employment. However, there are many small and medium-scale firms that do not have proper background verification policies, mainly due to time and budget constraints.
Furthermore, while a candidate can claim that they will join, including a clause in the appointment letter or its acknowledgment/acceptance letter stating that in case they are unable to join by the specified date, they must return the appointment letter within 4 working days would emphasize the seriousness of the commitment since it is documented and requires their signature.
It is not uncommon for individuals to attend interviews with various organizations, receive detailed appointment letters outlining compensation and benefits, and then leverage this information to negotiate counter offers or better terms at their current workplace. Unfortunately, some individuals even boast about this practice among their peers, highlighting the need to address such behavior.
Efforts to prevent such actions are essential, especially when it comes to retaining experienced employees who have made significant contributions to an organization. Often, employers trust the content of the appointment letter without verifying its authenticity with the new company, which can lead to misunderstandings and talent loss.
For instance, a contact of mine based in Pune sought a transfer to Mumbai but was unable to secure one within her current organization. Subsequently, she received an attractive offer from a Mumbai-based company with a higher salary. By resigning and presenting the offer letter (even without the appointment letter), she managed to secure a pay raise surpassing that of the new company and successfully transferred to the Mumbai branch. Despite having no intention of joining the Mumbai-based firm, she utilized the offer to her advantage.
The inclusion of such a clause in the appointment letter aims to address these scenarios and promote transparency and commitment.
Hope this explanation clarifies the rationale behind incorporating such a provision in appointment letters. Hope it helps :-)