Breach of Contract Clause: Can I Face Legal Action for Not Joining After Accepting an Offer?

Breach of Contract Clause in Offer Letter

I was recently selected for an organization where the offer letter included a clause about breach of contract. It stated that if I do not join, I will have to pay 8% of the annual CTC. I accepted the job because I liked the role.

Afterward, representatives from the organization came to my home, pressuring me to join. Due to security concerns, I decided not to join and informed them of my decision. However, they did not agree and mentioned that this clause was included because many people fail to inform or report on the date of joining without prior notice.

Legal Consequences of Not Joining

My question is, if they do not agree and I cannot pay the amount, can they file a case against me? This situation may seem unprofessional, but I signed the contract because, at that time, I did not have any other offer. I had been waiting for another company's call, and now that I have it, I do not want to miss the opportunity.

As you have signed the offer letter, you have explicitly agreed to the terms of the offer letter issued by the company. Hence, as a professional, you are bound by the terms of the offer letter, and you have a responsibility to comply with the terms in case of any breach.

Legal Status of Job Offer Letters

Regarding the legal aspect of the subject, a job offer letter is not treated as a legal document. However, if the company issues an Offer of Appointment and you have signed it, then it will be considered a legal document.

So please check.