Hi Mukesh,
I have gone thru opinions expressed by members on the point raised. There are two types of contract. One is "Contract of service", and other is "Contract for service'. There is difference between the two. Letter of intent is a term used in the tendering Processes and never in appointments for jobs. Legal implications are that when u issue letter of intent that can never be treated as offer of appointment. And when an employee joins your organisation against letter of intent and you allow him to join then there becomes legal binding between your orgn. and the employee. He in all legal aspects becomes your employee and is bound by your orgn. rules and regulations.Then I do not see any shrewedness in changing the word "offer of appointment" to "Letter of intent". Secondly, When u use the word "letter of intent" u are badly damaging the image of your orgn. in public. The mala fide intention becomes quite clear i.e. mens rea. And it becomes more clear when you chuck out the employee without following the due process of law i.e. actus reus. The offence is complete against the orgn. when you act to throw out the employee. I am of the clear opinion that use of letter of intent in lieu of offer of appointment is legally and morally wrong. If some one does not agree with my views please express your views.I would be glad to know to your views. The advice given by your senior appears to be out of extreme shrewedness without considering the legal and moral implications. The senior appears to be a Contracts specialist. Issue of "offer of appointment" is the best way. My advice to you is that you must seek legal opinion of your law deptt. if it exists.
regards,
Yours Truly,
Satish Kumar Dhanwal,
Head (HR),
NTPC Foundation,
Noida