LOI Vs Appointment Letter - Is this legally binding?

What can an employee do, if she receives an appointment letter only after joining and the appointment letter carries some objectionable clauses. Before joining only a LOI is issued. Upon joining, the employee will not have any second option but to accept the appointment letter. Is this legally binding and what are the rights of the employee in this case

Every Organisation have their own Terms & Conditions of Employment & I have the letter issued to you would be as per their company Policy and that would be applicable for all employees.
If there is some thing mentioned exceptional in your Appointment letter which is not applicable on others. You may ask the reason what so ever.
Rgds/Jitender

Hello Classiccopperian,

Can you give the FULL & COMPLETE details of the issue?

It's really strange that you expect the members to understand the background of the case without mentioning them?

And stranger still is your jumping to the Worst-Case-Scenario--talking about Rights & Legal options.

A lot would depend on WHAT the objectionable clauses are--pl summarize.

Also, what's the position level, Sector of the Organization, etc?

Having said that, prima-facie, MOST organizations in the present industrial/corporate scenario adopt the arrangement you mentioned--giving ONLY the Offer Letter/LoI & release the Appointment Letter only AFTER joining. And pl remember that this is IN RESPONSE.....AND NOT the causal action.....to the deteriorating psychology/actions of many candidates since the past few years, misusing the Appointment Letters they get when selected [before joining].

In fact, many Companies DON'T mention the Salary figures too in the Offer Letters now-a-days.

Rgds,

TS

It is a concern. As a good HR practice, while issuing the LOI, employer shares the clauses of appointment letter also, if they differ from LOI. Since they have not done so, you can talk to the concerned HR manager or your Manager and pls register your concern in writing stating the fact that the clauses are not acceptable as given in appointment letter. I am sure after knowing this, they should correct the process for the future recruitments at least and for you, they give liberty to accept or not to accept those clauses.

Dear All, thanks for your valuable comments. Like to clarify and share more detail.

before joining, only LOI was issued mentioning date of joining and designation. Rest they said as per standard practice, nothing to worry about.

Later appointment letter was issued, in the appointment letter it was mentioned that the employee will have to stay with the co for 48 months (since the co would be investing in training). If the employee decides to leave then the employee will have to pay last 6 months salary as penalty, whereas if co wants the employee can be asked to leave without any reason with a notice period/payment of 1 month. This point seems totally unprofessional especially when there is no investment on training.

More so, verbal commitments are not met, like NO proper training , NO team support as it was told that you would handle a team.

Other surprises like; no PF, no medi claim, no medical leaves, an old acer laptop, upon late coming salary deduction, complete U turn of profile promised and task given, forced to travel on weekends for business.

It turned out to be a most unprofessional & mis managed company. Things were hidden as no body from same industry likes to join so that’s people from different industry were tracked.

In such scenario what should an employee do? If the employee leave, the relieving letter will not be issued so the employee has no option but to either go through the ordeal or wait for the termination.

Putting things in writing may not help as there is nothing in writing here, like various policies or any other thing.

I will appreciate if you please advice. It is difficult for someone to adjust who has worked with large professional companies & MNCs

This company from outside appears like a big/professional company. What option does the employee have and what should a professional do in this situation?

I worked in a (seedy) publishing company based out of Delhi for a while that did all of above and more. I didn't survive 4 months in that rat hole. But when I left, I made sure they paid up all dues in 7 days and with all documents in perfect order. Of course, since I was at a GM level, they realized that I could do more hard to them if they tried to play dirty with me.
Let's see what the others have to say.

Hello,

The company had mentioned in the LOI that it would be as per the standard practice of the company. It implies that at would be as per the HR POLICIES of the company. You see the hand book of the company and discuss it with the other senior employees of the company. If the restrictions are as per the company policies, you can not do any thing except not to join the company. Actually you should have seen the HR POLICIES booklet of the company before tendering the notice to the old company.

The PF has to be deducted mandatorily only if it has 20 or more employees and your salary bracket falls in it or not. The mediclaim practice is not mandatory and you may be allowed a medical reimbursement of up to Rs. 15000 per year.

The clause of 6months on your side and 1month on the company side notice period for termination of service is not permissible. They can only claim the training charges expended by the company on you in addition to the 1month salary for notice period. No more than that. This point can be discussed with them and they would agree to it, I think.

Keep cool and balanced and discuss the issues with the management/HR and try to sort out immediately, otherwise you change the company without any receipt from the company.