Can We Bar Candidates Who Accept Offers but Don't Join? Seeking Advice on Offer Letter Clause

Hi,

I work for an IT company, and candidates who appear for interviews often accept the offer letter and use it to negotiate with their previous employers or other companies. Therefore, we want to add a line in the offer letter stating that if the candidate accepts the offer letter but later refuses to join, they shall be barred/blacklisted from appearing for an interview in our company for the next 2 years.

My question is, can we add this clause, and could you please provide the language to include this in the offer letter?

Thanks

What difference does it make to the candidate if he is getting a better deal? He will accept that. Your mentioning of the said clause, or not mentioning it, will not yield any results.

Yes, but it might act as a deterrent effect for many candidates.

Hi,

I believe that instead of mentioning this in writing, one should ensure to inform or communicate with the employee verbally that they will be barred or blacklisted from appearing for an interview at your company for the next two years. This sounds more reasonable. Some things should be kept verbal.

Hope this helps!

Recommendation on Candidate Shortlisting and Offer Letter Strategy

Please refrain from issuing any such directive. While it is necessary to shortlist 2 to 3 candidates for the position, I recommend the following two-step methodologies:

1) Initiate corrective measures to enhance your company's appeal. Conduct a survey and implement necessary actions for system and culture enhancement. There are companies with modest remuneration but exceptional work culture, training, HR practices, and humane, people-focused management. Consider reviewing an interview report of Tata's operations for insights.

2) To avoid salary negotiations with previous or potential employers, avoid disclosing specific remuneration details. Instead, provide a general overview verbally and share detailed payment information later. Issue the formal appointment letter, along with the relieving letter and necessary documentation submission instructions, after the candidate joins, preferably within 3 to 5 days in the presence of their Head of Department.

Best wishes,
RDS Yadav

Impact of Blacklisting Clauses in Offer Letters

It depends on the credibility and size of the company. A company like Wipro, Infosys, or similar, mentioning such clauses in the letter could act as a deterrent. However, it does not make a difference to candidates in smaller companies. There is also the factor of demand and supply. Even if a candidate is blacklisted, the company may have no other choice but to hire them when there is a demand for such skills. There have been instances where candidates have not reported on the date of joining after confirming their acceptance.

Just as employers have many candidates to choose from, candidates also have many companies to consider. Blacklisting will not deter a candidate who has a better offer elsewhere. Instead, building a brand as a good employer, which every candidate aspires to work for, will be more effective.

Regards