Facing a Labor Complaint After Withdrawing a Job Offer: How Should We Respond?

Hi, could you please help me handle the following issue:

We offered a position to a candidate in March 2023, and his expected date of joining (DOJ) was mid-May 2023. Unfortunately, we were unable to proceed with his joining, and we informed him of this in the first week of April while he was serving his notice period at his current company.

The candidate has now filed a complaint with the district Assistant Labour Commissioner, alleging that the company refused to let him join, and he is now unemployed. As a result, we have received a notice from the labor department.

I kindly seek your advice on what steps I should take next. We are required to appear at the labor department on Monday morning.

Thank you.

Hi, After inquiring as to why your company is unable to accommodate that candidate, shouldn't your company take responsibility for admitting the employee who resigned based on the offer?

It is unfair practice to issue an offer and then deny employment. In any case, during Monday's meeting, you will need to provide justification to the ACL on the grounds for not being able to accommodate that employee. Your company must comply with the ACL's decision, either by offering employment or providing compensation as per their order.

Yes, I got your point. However, due to certain circumstances, the operations of the particular department were shut down. That's why we were not able to join him.

Hi, In that case, some advance communication should have been passed on to the candidate, or he should have been accommodated in another department, subject to feasibility. It is not that the employee will not get any other offer at all, but for the time being, he suffers without employment based on your company's commitment.

As already suggested, "during Monday's meeting, you need to justify with the Assistant Labour Commissioner on what grounds you were not able to accommodate that employee." He might ask for some assurance that the company will consider that candidate for future requirements, etc. So close it amicably.

Jurisdiction of the Labour Officer

The Labour Officer has no jurisdiction in this matter, as the employment has not commenced. Therefore, there is no industrial dispute, which is a prerequisite for intervention.

Employee Appeal

Has the employee approached you in appeal? If not, raise that point too. Since you have already informed the candidate before the due date of joining, you are on safe ground. It is better to send your advocate or legal representative to defend the matter.

The person we offered the position to approached the Assistant Labor Commissioner after we had already confirmed his joining status. Before that, he was in touch with our recruiter regarding the joining status and any possibilities.

ALC Intervention in Employment Matters

The ALC can intervene only after the employee has joined, and that too for any employment-related matter. Since the candidate has not joined so far and you have informed the person of the inability to take him on the rolls, you have the proper matter to defend yourself. It looks like the ALC, on receipt of the complaint, has issued the notice in routine. Once you raise a strong objection, the ALC would close the matter.