Job Offer Signed but Employer Backed Out: Can I Seek Compensation for This?

Hi, my name is Vijay, and I want to know if an employer issues an offer letter stating that I will be appointed on or before 26th January but does not hire me and asks me to search for another job because I am already jobless since I resigned from my previous company after receiving the offer. In this case, how can I receive compensation from the employer when both the employer and I have already signed the offer letter?

Contractual Obligations in Master and Servant Relations

Since it is settled that general principles of contract are applicable to master and servant relations (vide Shriram Piston and Rings vs. TS Mogha case) decided by the Delhi HC in 2012 or 2013, the breach of contract committed by the employer by not allowing you to join renders them liable for damages under sections 73 and 74 of the Contract Act.

If your agreement was for a specific period, you can recover damages equivalent to the salary for that period (SS Shetty case decided by the Apex court). Alternatively, it depends upon the relevant statutory enactment, e.g., the Shops and Establishment Act of a specific State, and the terms and conditions of the appointment.

Thanks,

Sushil