Conflicting Terms in Offer and Appointment Letters: Which One Legally Prevails?

Hi,

I have noticed a discrepancy in the timeframe for refunding the Joining Incentive stated in the Offer Letter and the Appointment Letter. The Offer Letter, which was signed and agreed upon between the employee and employer a few months before the Appointment Letter, specifies that the Joining Incentive needs to be refunded if the employee leaves within 2 years. On the other hand, the Appointment Letter states that the Joining Incentive should be refunded if the employee leaves within 1 year.

In this situation, the question arises as to which document holds more legal validity.

Appointment order is a legal document that specifies terms and conditions. The difference in the period between these two documents is a mere clerical mistake that the company can rectify.

Hi NATHRAO, Thanks for your update. I have left the organization after one year, adhering to the norms in the Appointment Letter. The organization is now asking for a refund. Is that legally possible?

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The demand of the company can easily be contested. The company cannot try to benefit from their mistake.

Give a diplomatic reply drawing attention to what you have accepted as per the appointment letter.

In the chronology of documents, the appointment letter is the more recent one and hence binding. However, if there is a discrepancy, it has to be looked into by both parties immediately. If this had not been done, then whatever is the latest prevails. You have not mentioned on what basis they are asking for a refund. Are they citing the appointment letter or the offer letter? The above approach is based on logic. To get a legal opinion, you have to obtain it from legal experts. If I remember correctly, there are many senior legal experts like Mr. Kargoankar and Mr. Madhu who interact in the Cite HR forum. Please write to them with a personal request.

Regards,
V. Raghunathan