Declining offer letter
Ganesh
(Querist) 13 January 2014
This query is : Resolved
Hi
I got an offer letter from a IT firm with a clause that "Incase i dont join on or before xx date, i should pay a penalty of xxxx amount as liquidated damages to the company". I have signed the duplicate copy and sent it to that company.. I received the offer 1 month back with a joining notice of 2 months. Due to my personal health issues, i cant join that company and i have declined it in email. I declined in 1 month from receipt of the offer letter and still 1 more month is there as per their offer letter.
Can you please advise, if there will be any legal issues on me?
The letter heading says " Provisional Appointment Order" only
Devajyoti Barman
(Expert) 13 January 2014
Do not worry, nothing will happen to you.
Simi Salooja
(Expert) 13 January 2014
As per mi.. there should not be any legal implications on you..
also you can write a separate email to them stating that you will not be able to join for xyz reason. and that you do not attract that specific clause.
and you should be safe.
Regards
simi
Ganesh
(Querist) 13 January 2014
Hi
Thanks for taking your time to respond my query.. I have sent an e-mail declining the offer mentioning the reason. However i have not mentioned that the clause is not valid for me.. Since i have signed the copy of the offer letter as a token of acceptance, i am bit worried..
Simi Salooja
(Expert) 13 January 2014
write another email stating that you withdraw your signed document. and ask for their acceptance..
all the best...
im off for the day.
Advocate. Arunagiri
(Expert) 13 January 2014
You have not joined the company, so, the terms and conditions will not bind you.
Ganesh
(Querist) 13 January 2014
Thank you sir.. Just got a mail from that company.. The same is as follows:
//As you have rejected the offer , you need to pay to the company the said amount as mentioned in your offer which you have accepted & signed off. In case you do not then a legal action would be taken.
“In the event you fail to join the company on or before the scheduled date as confirmed, you shall pay liquidated damages equivalent to 1 month gross salary as per this offer letter”
Please respond to this mail immediately.//
Please suggest how should i react to this
Devajyoti Barman
(Expert) 13 January 2014
We have already advised that nothing will happen you.
Do not ask for same reply time and again.
Advocate. Arunagiri
(Expert) 13 January 2014
I once again confirm, the terms of apointment will come into effect, only if you join the company.
The company will not pay you salary from the date of acceptance of the offer letter. Because, the appointment order is effective from the date of joining only.
You should be proud that the company needs your service.
Kumar Doab
(Expert) 13 January 2014
Has the company reimbursed any expenses to attend the interview to you?
Did it state anytime in writing that expense for attending interview shall be reimbursed or not reimbursed and after the offer has been made the candidate shall tender liquidate damages in case he does not join?
Such approach is well in existence as many companies believe that it has spent an amount on process of recruitment and if the candidate has accepted an offer the seat shall not be vacant for other candidate to join by that date and all other short listed candidates shall not be made an offer to join.
The liquidated damages are not paid on just demand these may have to be established.
Company believes that the signed and accepted offer has become legally enforceable contract.
Company has used the word ‘Liquidated Damage’ equivalent to.......................1month Gross Salary so that itemized detail and supporting bills are not required and both parties have agrees it as a reasonable amount to be paid by the party that has breached the contract....................
There are threads with another scenario that when candidate at the time of joining is told that the offer has to be cancelled since the position offered is not available......................................and companies do not tender any liquidated damages to compensate the employee whose career has been adversely affected.
If you are perturbed let your lawyer examine all docs verbatim and submit a fitting reply. It may put the matter on ‘Shut Up’ mode.
The company has advertised in ................................papers, conducted interviews by self/thru its high profile consultants, in star hotels etc at its sweet will..........................................
If it was sensitive of expense it could very well write by a chalk and ‘Advertise on its Walls’ so that passers by could read and enter for interview........................
Rajendra K Goyal
(Expert) 14 January 2014
Well advised by the experts, agree to it.
Raj Kumar Makkad
(Expert) 15 January 2014
You need not to worry and need to keep mum and wait for the threatened action on the part of the company. No legal action can be initiated against you in the given facts.
