There are three questions asked and Mr Grover has answered most of them well. For more clarity, I am elaborationg here.
There are two categories of employees in any establishment in India. 1. Workmen as defined under Industrial Disputes Act. 2. Other employees who are not covered under this definition(generally termed as Management staff/supervisory staff etc)
1. Workmen as defined under ID Act are covered by ID Act, Standing orders Act and the appointment letter
2. Other employees will be covered by he terms of appointment and other circulars issued in the organisation and are guided by Indian Contract Act
Now let us examine all these three questions.
A) Is appointment letter clauses are enforceable in court of law?
As explained by Mr Grover appointment letter vlauses are enforceable in a court of law. In case of workmen, it will be examined by a Labour Court and
the process to approach Labour Court is through conciliation.In case of other employees, the remedy has to be obtained through civil suits under
Contract Act
B) Termination on mere ground of employer discretion can be justified and if not what can i employee can do.
Termination on discretion is not legally correct. Termination on grounds of misconduct must precede by enquiry and principles of natural justice must
have been complied with.Termination at the end of probation is legally correct both in respect of workmen and management staff.If a workman not
satisfied with termination can approach conciliation officer under Sec 2(A) of ID Act and through this process can approach Labour Court.Other
employees not covered under ID Act can file a suit in the concerned Civil Court. Civil suits takes longer duration but there is no other option
available.Employees of Public Sector undertakings can approach High Courts by a writ but this recourse is not available for other employees working in
private sector.
C) when an employee does not join after accepting offer letter or even appointment letter is we can do anything.
Offer letter and acceptance of an offer technically completes a contract. Unfortunately most companies mention "if you do not join on or (date) this
offer stands withdrawn" If this is the clause, then management can not have any recourse through legal means as the clause clearly says that
non-compliance will only end in management withdrawing the offer. Altenatively, if management introduces new clause specifying certain financial loss
which are reasonable, then approaching the court is possible. However, no Management generally would like to resort to such clauses as it will not
attarct new talents even to appear for interview. Legal clauses do not help always.
The original poster has also raised another question
please advise if an employee coming in out preview of workmen does not give one month notice before leaving the company can we legally hold his
salary as he has sign a appointment letter which has a clause of one month notice period
Holding notice period salary is legally correct for all employees. In respect of workmen covered under ID Act, companies certified standing orders will
be applicable more than the offer letter/appointment letter. If there is nrtified Standing Orders, then Model Standing Orders wiull be applicable and
most of the model standing orders provide for 15 days notice period. However kindly check the model standing orders in your State.
For other employees, whatever is specified in offer letter/appointment letter/or any subsequent circular which has been duly acknoldeged by the
employees will be applicable and it is legal to hold/deduct notice period salary from final dues payable.