Is My Campus Placement Letter Legally Binding? Can I Back Out for Another Job Offer?

Hello, I was placed via a campus placement, and the company that selected me provided me with a letter (it should have been an offer letter) via email. All the terms and conditions were mentioned on the second page, where I was accepting the letter. There was one line written as, "This document will be an official appointment letter on acceptance."

Does that make the letter an appointment letter instead of an offer letter, as all the terms were also mentioned? If so, will accepting it (which I did 6 months prior) make me legally bound to join the company, or can I back out as I have accepted employment elsewhere?

Clause on the Second Page

In short, does the following clause on the second page ("This document will be an official appointment letter on acceptance.") make it an appointment letter? The terms and conditions of employment are provided with bonds, but "calculative from the date of joining" is written. Does this make me liable to join, given that they made me sign 6 months prior and within 48 hours?

Please help quickly, as I have another offer, and the joining date for this offer is near. I need to write an email, and I want to ensure what I might face. Is the company not wrong in providing just one document? Can I be legally forced to join the company?

Appointment Letter and Legal Obligations

This appears to be an appointment letter. There is no prescribed format for an appointment letter, and every organization has its own mode of issuing appointments. You have accepted the letter without any conditions, so you are bound by its terms. Now, you want to back out, but you have not yet joined them. From the description, the bond condition is not clear. If it is calculated from the date of joining, then no liability arises. At worst, by declining to join them, you are going to violate the agreement, and consequently, you are liable to pay damages for the same. The principle of law is that the damages have to be reasonable and cannot be any fanciful amount. To give the exact interpretation, the bond clause needs to be examined.

Revoking an Accepted Offer

An offer accepted can be revoked only by sending a letter or email stating that you wish to withdraw from the contract. This is because an offer, once accepted, is binding on both parties. However, the obligation to fulfill the promise, i.e., to serve the company as an employee, starts from the date of joining. If you do not wish to join the company for any reason, you should communicate this to the other party promptly. It is crucial as a matter of fair practice that they are informed promptly so that they can seek an alternative resource without delay.

Employment Contract Considerations

Simultaneously, while under a contract of employment with a company, you should not enter into another employment contract with a different employer. Therefore, it is essential to first revoke the contract with the initial employer before accepting an offer from a new one.

There have been a number of instances wherein, after campus placement and the issuance of an appointment letter, employees/candidates have been informed that due to stated or unstated reasons, the offer stands withdrawn. As rightly suggested by other colleagues, do inform in writing as well, by way of email, that you will not be joining.

It would have been better to give them ample advance notice so that in case they have shortlisted any other candidate, he/she may be offered the job.

If you are planning to leave for greener pastures, then I reserve my comments. But certainly, it is not in good taste.

Col. Rathi