Hi sir,
I have given the interview and I have selected. Company had offered me and I have signed offer letter on date 22/05/24, 100 Rs/- stamp paper affidavit in which content of they written ""if you will not be join the company then you would have to pay half of CTC offered by the company. And I don't want to join the company so what should I do. If I will not be join then can company would take legal action or this type of offer on affidavit is not valid.
From India, Ahmedabad
I have given the interview and I have selected. Company had offered me and I have signed offer letter on date 22/05/24, 100 Rs/- stamp paper affidavit in which content of they written ""if you will not be join the company then you would have to pay half of CTC offered by the company. And I don't want to join the company so what should I do. If I will not be join then can company would take legal action or this type of offer on affidavit is not valid.
From India, Ahmedabad
If you have not joined the company how can you become liable to for any compensation? First, no company can make such an agreement which restricts the rights of a citizen, second an agreement signed on a non judicial paper of Rs 100 is just like something written on a paper. Therefore, if you do not wish to join, send a communication that you are not interested. They cannot take any legal action. They may send some notices. If you do not pay the amount, how will they recover it? Can they approach the District Collector and ask him to collect the amount through revenue recovery process? NO.
From India, Kannur
4193From India, Kannur
Dear Madhu T K Sir,
thanks for excellent reply as always .
i have query in same line ,, please do share your view..
1. Non Joining Penalty
Few Companies put clause (under Contract act ,1872) in office letter as in if you don't join you have to pay X days CTC as mention above.....
Does acceptance offer considered as "acceptance of Contract" and become binding under contract act ,1872?
2.Legality of Stamp paper/Notary / Franking of Appointment letter of org
i came across case where company franking Appointment letter and employee need to sign in ..
a. What difference in normal appointment letter and franking one?
b. what is the advantage and disadvantage of franking of Appointment letter.
Thanks for your time and guidance in advance
From India, Mumbai
thanks for excellent reply as always .
i have query in same line ,, please do share your view..
1. Non Joining Penalty
Few Companies put clause (under Contract act ,1872) in office letter as in if you don't join you have to pay X days CTC as mention above.....
Does acceptance offer considered as "acceptance of Contract" and become binding under contract act ,1872?
2.Legality of Stamp paper/Notary / Franking of Appointment letter of org
i came across case where company franking Appointment letter and employee need to sign in ..
a. What difference in normal appointment letter and franking one?
b. what is the advantage and disadvantage of franking of Appointment letter.
Thanks for your time and guidance in advance
From India, Mumbai
I agree with both Mr. Madhu and Mr. Student of life . However, it's important to understand why Company included that wording in the agreement or contract. Before signing, one should carefully consider the implications. By not doing so, a candidate's opportunity is compromised, necessitating Company to restart the recruitment process. Not all consequences are strictly legal; there are also moral implications. Signing a legally binding contract, such as an offer letter on stamped paper or affidavit, entails a moral obligation to honor its terms. Failure to do so could potentially lead to legal repercussions from the company. However, the enforceability of such clauses depends on various factors, including jurisdiction, contractual language, and local employment regulations. In India, contracts are generally upheld if they fulfill legal prerequisites such as free consent, lawful objectives, and consideration
In the case of Senior Executives, you can have appointment orders franked or stamped. But in general it is not required because the employment contract will be governed by other laws than the Contract Act. Putting restrictive clauses and covenants restricting an employee to leave and join another employer offering the same kind of work is illegal and voidable. Therefore, even if it is signed by the employee it will become a voidable contract and as such the employee is is always at the weak end can terminate the contract without any compensation. Therefore, even f the employment contract is embodied in a stamp paper, the same will not be valid if it contains any negative covenant or restrictive clause. The best example is putting a clause that "you will not be eligible for any gratuity when you leave" or "you will not be entitled to get any leave surrender" or "PF" etc. Even if it is accepted by the employee, it will become a negative covenant and challenged. Therefore, what is important is putting the conditions of employment in line with the applicable labour laws and not embodying everything in a stamp paper.
From India, Kannur
From India, Kannur
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