Dear Richa,
This is my second post on the subject. While issuing the offer, maintain the format of the existing offer letter. Thereafter, you may insert the following three paragraphs:
a) Acceptance of the offer letter denotes the obligation to take up the job on the date mentioned in paragraph ____ above. If Mr/Ms _________ (name of the candidate) reneges on the offer or fails to join the duties, then he/she is obliged to pay Rs _______ as hiring charges.
b) The issue of this offer letter denotes the obligation to provide a job to Mr/Ms _____ (name of the candidate). If the offer letter is revoked, or if the job cannot be provided on any account, the administration of ________ (name of your company) is obliged to pay compensation of Rs _____ to _____ (name of the candidate).
c) Provisions of the Indian Contract Act, of 1872 apply to this offer letter. Acceptance of this letter, either in person or through electronic means signifies acceptance of the terms and conditions mentioned in the previous paragraphs. All legal disputes and settlements shall be subject to the jurisdiction of the courts in _____ (name of the city).
Note: - The amount mentioned in paragraphs (b) and (c) should be the same. Otherwise (c) can be greater than (b). Though I have given the draft, I recommend you show this draft to a professional lawyer who takes up cases of the Indian Contract Act.
For Mr Lakshminarayan: - You have asked the purpose of inserting the extra clauses. These clauses are inserted because the employers are fed up with "no show" by the selected job candidates. Employers spend a whole lot of time and money to select the candidate. If the selected candidate ditches the would-be employer, the employer is left in the lurch. Against this backdrop, by inserting an obligation to join, the employers create a deterrence in the minds of the job candidates. If not for the wayward, instilling fear works at least for the levelheaded or the serious candidates. The candidate who is not serious about taking the job, will not accept the job offer. If the candidate turns down the offer letter, the efforts spent in searching for the candidate will go to waste but at least this wastage is better than waste happening because of the "no show".
Thanks,
Dinesh Divekar