Employee Rights Dilemma: What If Your Appointment Letter Has Unwanted Clauses?

Employee Rights Regarding Appointment Letters

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 Letter of Intent (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?

Understanding Employment Terms and Conditions

Every organization has its own terms and conditions of employment. The letter issued to you would be as per their company policy and that would be applicable to all employees.

If there is something mentioned in your appointment letter that is exceptional and not applicable to others, you may ask for the reason whatsoever.

Regards,
Jitender

Request for Complete Details

Can you provide the full and complete details of the issue? It's really strange that you expect the members to understand the background of the case without mentioning it.

Concerns About Worst-Case Scenario

It's even stranger that you are jumping to the worst-case scenario—talking about rights and legal options. A lot would depend on what the objectionable clauses are—please summarize.

Position and Sector Information

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 and releasing the Appointment Letter only after joining. Please remember that this is in response, and not the causal action, to the deteriorating psychology/actions of many candidates over the past few years, misusing the Appointment Letters they receive when selected [before joining].

In fact, many companies don't mention the salary figures in the Offer Letters nowadays.

Regards,
TS

Addressing Appointment Letter Clauses

As a good HR practice, it is concerning that the employer did not share the clauses of the appointment letter while issuing the Letter of Intent (LOI). If these clauses differ from the LOI, you should address this with the HR manager or your manager in writing. Clearly state that the clauses in the appointment letter are not acceptable. By bringing this to their attention, they should correct the process for future recruitments. Ultimately, you have the freedom to accept or reject those clauses.

Dear All, thanks for your valuable comments. I'd like to clarify and share more details.

Pre-Joining Conditions

Before joining, only a Letter of Intent (LOI) was issued, mentioning the date of joining and designation. They assured that everything else would follow standard practice, so there was nothing to worry about.

Appointment Letter Concerns

Later, an appointment letter was issued. It stated that the employee must stay with the company for 48 months because the company would be investing in training. If the employee decides to leave, they must pay the last 6 months' salary as a penalty. Conversely, the company can ask the employee to leave without any reason with a notice period or payment of 1 month. This point seems totally unprofessional, especially when there is no investment in training.

Unmet Verbal Commitments

Moreover, verbal commitments are not met, such as no proper training and no team support, despite being told that you would handle a team.

Additional Concerns

Other surprises include no Provident Fund (PF), no medical claim, no medical leaves, an old Acer laptop, salary deductions for late arrivals, a complete U-turn on the promised profile and tasks, and being forced to travel on weekends for business.

Company's Unprofessionalism

It turned out to be a most unprofessional and mismanaged company. Things were hidden because nobody from the same industry wanted to join, so people from different industries were targeted.

Options for the Employee

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

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

I would appreciate your advice. It is difficult for someone to adjust who has worked with large professional companies and MNCs.

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

Regards

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

Let's see what the others have to say.

The company had mentioned in the LOI that it would be as per the standard practice of the company. It implies that it would be as per the HR policies of the company. You should review the handbook of the company and discuss it with other senior employees. If the restrictions align with company policies, you cannot do anything except choose not to join the company. Ideally, you should have reviewed the HR policies booklet of the company before tendering your notice to the old company.

The PF deduction is mandatory only if the company has 20 or more employees and your salary falls within that bracket. The mediclaim practice is not mandatory, and you may be allowed a medical reimbursement of up to Rs. 15,000 per year.

The clause stipulating a notice period of 6 months on your side and 1 month on the company's side for termination of service is not permissible. They can only claim the training charges expended by the company on you in addition to one month's salary for the notice period. Nothing beyond that. This point can be discussed with them, and they may agree to it.

Stay composed and balanced, discuss the issues with management/HR, and try to resolve them promptly. If not, you can consider changing companies without any repercussions from the current company.

Regards