A few months back, I received an offer letter and accepted the offer. The offer letter included terms and conditions. Although I did not physically sign the document, I provided acceptance via email. However, I ultimately decided not to join the company due to serious issues such as frequent management changes and employee terminations. Typically, acceptance is required within a day or two after receiving the offer, making it challenging to assess the company's progress.
The company took my decision not to join seriously and initiated legal action, sending a court summons demanding a substantial payment exceeding a lakh. They claimed breach of contract and requested reimbursement for court charges. I questioned why I was being asked to pay such a large sum, as I was never informed of these consequences for not joining.
Questions Regarding Legal Implications
I have the following questions:
1) Did I commit any legal wrongdoing in this situation?
2) Should I comply with their demand for payment, considering the significant amount involved?
3) Is email acceptance considered legally binding?
4) Does this scenario fall under the Information Act 2000 regarding breach of contract?
Thanks.
From India, Hyderabad
Acknowledge(1)
Amend(0)
1The company took my decision not to join seriously and initiated legal action, sending a court summons demanding a substantial payment exceeding a lakh. They claimed breach of contract and requested reimbursement for court charges. I questioned why I was being asked to pay such a large sum, as I was never informed of these consequences for not joining.
Questions Regarding Legal Implications
I have the following questions:
1) Did I commit any legal wrongdoing in this situation?
2) Should I comply with their demand for payment, considering the significant amount involved?
3) Is email acceptance considered legally binding?
4) Does this scenario fall under the Information Act 2000 regarding breach of contract?
Thanks.
From India, Hyderabad
Acknowledge(1)Amend(0)
What were the terms of the offer that you were asked to sign? What did you state in your email acceptance? While I would suggest you consult a lawyer, my understanding of this process is that the offer letter is an intent to offer employment should certain conditions be met, not a guarantee of employment.
Terms of the Offer and Company's Liability
What are the terms of the offer where the company's liability is mentioned in case they have to withdraw the employment offer? If such terms exist, then it becomes a contract as per the terms of equal justice. If this goes to court, it is the company's onus to prove that they have spent this amount of money beyond what is necessary as part of their need to hire manpower, to attract only you as a special candidate. Can they do that?
Next time, if you see such clauses in the offer letter, do not join because such organizations are bound to have issues and will surely have higher than normal attrition.
Regards
From India, Mumbai
Acknowledge(1)Amend(0)
Terms of the Offer and Company's Liability
What are the terms of the offer where the company's liability is mentioned in case they have to withdraw the employment offer? If such terms exist, then it becomes a contract as per the terms of equal justice. If this goes to court, it is the company's onus to prove that they have spent this amount of money beyond what is necessary as part of their need to hire manpower, to attract only you as a special candidate. Can they do that?
Next time, if you see such clauses in the offer letter, do not join because such organizations are bound to have issues and will surely have higher than normal attrition.
Regards
From India, Mumbai
Acknowledge(1)Amend(0)
Legal Implications of Employment Offer Acceptance
Just ignore their letter. The conditions will be sacrosanct once the employer-employee relationship is developed. Until such time, neither party can claim damages unless one party is financially affected by the other party.
Regards,
Pon
From India, Lucknow
Acknowledge(2)Amend(0)
Just ignore their letter. The conditions will be sacrosanct once the employer-employee relationship is developed. Until such time, neither party can claim damages unless one party is financially affected by the other party.
Regards,
Pon
From India, Lucknow
Acknowledge(2)Amend(0)
Ryan Barretto is right—your attachment is applicable more for those who joined. It refers to probation, etc., and nothing related to lapse or refusal to join. Also, please clarify or confirm if you received any reply to the mail you sent. The wording you used implicitly indicates that you are expecting their reply before you resign. It's not a de facto acceptance of the offer—presuming you mentioned the full mail you sent them.
Breach of Contract Aspect
Regarding their "breach of contract" aspect, was anything mentioned in any of their mails about the amount or any reference to such a thing? As Ryan suggested, hire an advocate and send them a legal notice for mental harassment—in short, go for the counter-attack. I also wouldn't rule out taking this to the local media—check with your advocate before you do so.
All the best.
Regards,
TS
From India, Hyderabad
Acknowledge(1)Amend(0)
Breach of Contract Aspect
Regarding their "breach of contract" aspect, was anything mentioned in any of their mails about the amount or any reference to such a thing? As Ryan suggested, hire an advocate and send them a legal notice for mental harassment—in short, go for the counter-attack. I also wouldn't rule out taking this to the local media—check with your advocate before you do so.
All the best.
Regards,
TS
From India, Hyderabad
Acknowledge(1)Amend(0)
I hope the problem is solved. If not, the other two members have given the right advice. They cannot claim anything unless they have spent money on hiring you with your consent, which, by the way, is not possible. Ignore their email. This tactic is employed by a few companies to pressure you into joining, as most candidates often have limited knowledge or no knowledge about legal issues. This is not the right approach for a company. I myself have made several offers, and many have been rejected after initial acceptance. There would be no legal consequences.
In fact, a case of mental harassment could be filed from your end, and in that case, you could definitely claim the amount they have asked you to pay or even more, whatever you deem appropriate. However, I wouldn't suggest you do that as it will only disturb your peace of mind. The best course of action is to send an email to them stating that you are aware of the legal actions that could be taken against you for your actions. Remember, nothing becomes a contract unless it is on stamp paper. An acceptance of an offer does not bind you in the way the concerned company has implied. Moreover, they cannot take legal measures unless you were formally and in writing informed about their right to claim the said amount, and that too on stamp paper.
From India, Pune
Acknowledge(0)Amend(0)
In fact, a case of mental harassment could be filed from your end, and in that case, you could definitely claim the amount they have asked you to pay or even more, whatever you deem appropriate. However, I wouldn't suggest you do that as it will only disturb your peace of mind. The best course of action is to send an email to them stating that you are aware of the legal actions that could be taken against you for your actions. Remember, nothing becomes a contract unless it is on stamp paper. An acceptance of an offer does not bind you in the way the concerned company has implied. Moreover, they cannot take legal measures unless you were formally and in writing informed about their right to claim the said amount, and that too on stamp paper.
From India, Pune
Acknowledge(0)Amend(0)
Understanding Offer Letters and Legal Implications
It is only an offer letter, which is essentially a letter of intent. The company is offering you a position with a remuneration of... rupees. You are not legally bound to pay anything to the company. Even if a company issues an appointment order and the appointee does not join, no company can take legal action. Nowadays, even courts accept emails as a document.
Thanks,
R K Nair
From India, Aizawl
Acknowledge(0)Amend(0)
It is only an offer letter, which is essentially a letter of intent. The company is offering you a position with a remuneration of... rupees. You are not legally bound to pay anything to the company. Even if a company issues an appointment order and the appointee does not join, no company can take legal action. Nowadays, even courts accept emails as a document.
Thanks,
R K Nair
From India, Aizawl
Acknowledge(0)Amend(0)
Dear Mahi82, I have gone through the general terms and conditions you placed on record. Let me say that the offer (you narrated) itself is not complete. Unless full facts, inclusive of the full offer of appointment, are placed for a view, our opinion cannot be firm and clear. I hope you agree with it.
Regards,
S.K. Johri
From India, Delhi
Acknowledge(0)Amend(0)
Regards,
S.K. Johri
From India, Delhi
Acknowledge(0)Amend(0)
Understanding Contractual Obligations and Breach of Contract
A contract contains Offer, Acceptance, and Remuneration (Consideration). In this issue, all three elements have taken place. The company has spent on advertisement, consultancy, or any other expenses related to offering the candidate. After all conversations with the candidate, the company has selected him to hire. An offer letter with the terms, whatever they may be, has been mailed to the candidate and was accepted in return mail. It is final that the candidate has mailed the consent. Immediately, the company has paid the related parties.
In the event of a breach of contract, the company can claim damages as per Section 73 of the Indian Contract Act. The company can provide a bill of consultancy or a real advert in this regard, which is enough proof of spending money towards his selection. However, this will have multifaceted arguments in a court of law.
Regards,
Sr. Manager HR & Legal
From India, Guwahati
Acknowledge(1)Amend(0)
A contract contains Offer, Acceptance, and Remuneration (Consideration). In this issue, all three elements have taken place. The company has spent on advertisement, consultancy, or any other expenses related to offering the candidate. After all conversations with the candidate, the company has selected him to hire. An offer letter with the terms, whatever they may be, has been mailed to the candidate and was accepted in return mail. It is final that the candidate has mailed the consent. Immediately, the company has paid the related parties.
In the event of a breach of contract, the company can claim damages as per Section 73 of the Indian Contract Act. The company can provide a bill of consultancy or a real advert in this regard, which is enough proof of spending money towards his selection. However, this will have multifaceted arguments in a court of law.
Regards,
Sr. Manager HR & Legal
From India, Guwahati
Acknowledge(1)Amend(0)
The details of expenses you mentioned in your post are normal recruitment expenses for any level of hiring—there is nothing special about it. The organization will have to prove that the expenses were incurred only for this particular candidate in order to claim damages.
Turning the Discussion Around
What if the organization has to withdraw the offer of employment due to a variety of reasons, e.g., market conditions, recruitment freeze, company restructuring, finding a better candidate internally through job rotation, or an employee reference? Will the organization reciprocate and be kind enough to pay such a candidate who accepted the offer and resigned from his job at least 3 months of the offered salary so that he can find a job? If the answer is "no," then you know the principles of natural justice are not met, so any such case reaching court will not be entertained.
It is better for the organization and the HR department to swallow their pride and spend the time fruitfully in hiring new resources. Perhaps they can be more stringent when hiring next time.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Turning the Discussion Around
What if the organization has to withdraw the offer of employment due to a variety of reasons, e.g., market conditions, recruitment freeze, company restructuring, finding a better candidate internally through job rotation, or an employee reference? Will the organization reciprocate and be kind enough to pay such a candidate who accepted the offer and resigned from his job at least 3 months of the offered salary so that he can find a job? If the answer is "no," then you know the principles of natural justice are not met, so any such case reaching court will not be entertained.
It is better for the organization and the HR department to swallow their pride and spend the time fruitfully in hiring new resources. Perhaps they can be more stringent when hiring next time.
Regards,
From India, Mumbai
Acknowledge(0)Amend(0)
Same happened with me, please suggest me.
Summary of Your Obligations
Upon review, executing this Letter of Intent and Agreement to Serve Official Duty ("Letter") signifies your acceptance of the employment offer and obligations enclosed in this Letter. If, upon accepting this offer of employment, you decide not to join the service with ---- on the Date of Joining, then you will be charged for the cost of hiring, time spent on the hiring process, and recruitment firm consultancy fee. The total charges would be 30% of the total C.T.C (Cost to Company), i.e., the total of current fixed salary & BPLP P.A.
Issuing an Acceptance of Offer Surety Cheque
As part of your acceptance of this offer of employment, you have issued a cheque to ---- for the following amount and with the following information:
Acceptance of offer cheque amount (in words):
-
Cheque number: 04576454
Cheque bearing account number:
Bank name:
Reviewing and Accepting the Required Term of Employment Obligations
After joining the Company, if you leave the employment during the period of training, or if you fail to take up regular employment after completion of training, or for any reason leave the service with the Company before completion of a Minimum Period, you will be liable to pay up to the following amount as liquidated damages to ----: 30% of total C.T.C (Cost to Company), i.e., the total of current fixed salary & BPLP P.A.
From India, Delhi
Acknowledge(0)Amend(0)
Summary of Your Obligations
Upon review, executing this Letter of Intent and Agreement to Serve Official Duty ("Letter") signifies your acceptance of the employment offer and obligations enclosed in this Letter. If, upon accepting this offer of employment, you decide not to join the service with ---- on the Date of Joining, then you will be charged for the cost of hiring, time spent on the hiring process, and recruitment firm consultancy fee. The total charges would be 30% of the total C.T.C (Cost to Company), i.e., the total of current fixed salary & BPLP P.A.
Issuing an Acceptance of Offer Surety Cheque
As part of your acceptance of this offer of employment, you have issued a cheque to ---- for the following amount and with the following information:
Acceptance of offer cheque amount (in words):
-
Cheque number: 04576454
Cheque bearing account number:
Bank name:
Reviewing and Accepting the Required Term of Employment Obligations
After joining the Company, if you leave the employment during the period of training, or if you fail to take up regular employment after completion of training, or for any reason leave the service with the Company before completion of a Minimum Period, you will be liable to pay up to the following amount as liquidated damages to ----: 30% of total C.T.C (Cost to Company), i.e., the total of current fixed salary & BPLP P.A.
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Offer acceptance letter.zip
Legal Clarification on Absconding & Contract Labour.pdf