What Legally Defines an Employer-Employee Relationship: Joining Report or Appointment Letter?

Understanding the Legal Differences: Joining Report vs. Appointment Letter

I'm very new to this community. Although I have been actively surfing the threads of this forum for quite a long time now, I have never participated in any of the discussions. I work in an MNC power grid manufacturing company as an Operations Manager and have been associated with this organization for the last 14 years. So, I have no relationship whatsoever with HR. There are capable HR professionals in our organization to take care of everything. However, I have a query. Recently, I came across a question asked by one of my nephews, and due to my lack of awareness, I was unable to provide a proper and relevant reply.

Legal Perspectives: Joining Report vs. Appointment Letter

My question is, what is the difference between submitting a joining report and signing an appointment letter? Please note that I know the basic differences, but I'm more interested in understanding the legal perspective. In our organization, if I'm not mistaken, we provide the appointment letter to a new employee 3-4 days after they join. However, on the very first day, they have to submit and sign a joining report where no terms and conditions of employment are mentioned. I'm sorry, I don't know if the rule has changed now, but at least that was the prevalent rule.

Employer-Employee Relationship: What Happens Before Signing the Appointment Letter?

Now, my question is, after signing and submitting the Joining Report and before signing the appointment letter (the 3-4 days period I'm talking about), if they decide to leave, what happens then? Is the employer-employee relationship established?

That is exactly what happened with my nephew. He joined an organization, submitted a duly signed joining report. But before getting the appointment letter, he resigned. What is his legal liability? Is he supposed to pay any amount in lieu of? Please note, as per him, he didn't sign any form emphasizing Exit Clauses. I know the appointment letter officially declares that an employee is appointed, but does the Joining Report serve the same purpose? Is it also a legal document?

Importance of Submitting the Joining Report vs. Signing the Appointment Letter

So, what's more important? Submitting the Joining Report or signing the Appointment Letter? From a legal perspective, what helps establish the employer-employee relationship - the Joining Report or the Appointment Letter?

I hope to have a discussion on the same. Meanwhile, I must tell you that my nephew eventually came out of this situation, and the company stopped pursuing him. But the fundamental question remains the same.

What are the takes of the experienced professionals here? We would like to know.

Regards

Comments: The appointment letter is a contract between the employer and employee under the provisions of the Indian Contract Act, 1872; it has valid sanction. If the appointment letter is not issued, then this contract is not established. Since the contract was not established, the conditions of the contract, which are nothing but conditions of employment, did not establish. Against this backdrop, your nephew's abandonment of employment will not have any legal consequence.

As far as the Joining Report is concerned, we do not know what was written in the joining report. Nevertheless, if we apply common sense, then it can be inferred that it could be a routine administrative procedure of the company. Therefore, it cannot be placed at par with the Appointment Letter.

Thanks,

Dinesh Divekar

I sincerely apologize for such a long post and thank you for pointing out the length of my query. I was not aware of the rules of this community, so I began with a lengthy introduction. Nevertheless, thank you for your essential comments. Returning to the topic, does merely signing a joining report establish the employer-employee relationship?

I am not fully aware of the contents of the joining report he signed that day, but from my discussions with him, I understood it to be something like 'joining today on.....at this position...'. However, he clearly mentioned that no terms and conditions were included.

I have also seen the standard format of the joining report in our organization, which includes the date of reporting, position, and a few other details but is not very elaborate. On the other hand, the Appointment Letter/Employment Agreement of our company is detailed, spanning 36-38 pages.

Forgive my lack of knowledge on the subject, but on the day of joining, we usually generate SAP IDs for new hires along with other important accesses. However, appointment letters are issued only after 3-4 days. So, even if we grant new hires access to sensitive information within the first 3-4 days, are they not officially appointed until they sign the appointment letter, despite signing the joining report on the first day?

I am unable to approach our HR with the same question, which is why I am asking you for clarity. Why is this process followed? Does it not compromise the company's security measures?

I apologize for another lengthy post filled with questions! I look forward to receiving a response to my academic query.